UK embraces reshoring as global supply chains falter

New research from automation software company Medius reveals that 58 per cent of UK manufacturing firms are reshoring their supply chains, moving production from overseas to the countries where goods are sold. According to the survey, 90 per cent of businesses that have engaged in reshoring have had a positive experience, with 24 per cent enjoying a reduction in costs and 26 per cent reporting enhanced value and heightened security. The research also found that 82 per cent of respondents were planning to increase the pace of reshoring over the next two years.  

“In the face of a tough business landscape, UK manufacturers are navigating a maze of challenges, from interest rate hikes to supply chain complexities and consumer demand shifts,” said Paul Ellis, UK MD at Medius.

“Despite these challenges, a remarkable 58 per cent of manufacturers are reshoring their operations, spurred on by tech advancements and the opportunity of having greater security within their supply chains, without the hefty price tag which used to be associated with onshore production. And it's just the beginning, as manufacturers embrace AI and automation, with the promise of not just surviving but thriving in the shifting economic tides.”

The survey found that AI driven tracking platforms (31 per cent), digitalisation in factories (29 per cent), and data analytics for risk management (29 per cent) were all significant enablers of surge towards reshoring. Business leaders have also been encouraged by automation as they expect a shorter payback time between making an investment in automation and seeing a return on that investment. More than three-quarters (78 per cent) of manufacturers say they expect a fast return on investment due to automation in the supply chain.

For customers, key benefits of the uptick in reshoring are expected to be cheaper products due to a reduction in business costs (35 per cent), reduced lead times (34 per cent), and higher quality products (33 per cent).