[REPORT] UK manufacturers create 50,000 new jobs as part of a major reshoring effort
British automotive manufacturing is about to have a resurgence. Over the course of the next two years 50,000 jobs will be created as manufacturers bring production back to home shores. New research suggests that the recent reshoring trend is down, in part, to manufacturers attempting to break into the ‘green’ auto industry.
Work previously sent abroad is now coming back to Britain as car companies seek to create more reliable and shorter supply chains, according to a study of the automotive sector by Lloyds Bank.
The study found that 70 percent of car manufacturers and suppliers plan to move production back to Britain in the next two years as part of a nationwide onshoring strategy. It is thought improving economic conditions in the UK and a desire to support local communities are the major driving factors.
Almost half of the 100 companies questioned, which ranged from SMEs turning over less than £25m to industry giants such as Jaguar Land Rover, said they had already onshored 20 percent of their manufacturing capability. Of those planning to return work to Britain, almost 30 percent of their total production will be in the UK within two years.
David Atkinson, head of manufacturing for SMEs at Lloyds, said, “Britain remains a leading player in automotive manufacturing, with a complex supply chain of high-value engineering. The sector’s recent growth has made it the ‘jewel in the crown’ of the nation’s economy, and this looks set to continue.”