British companies bringing production and service jobs back to the UK could lead to the creation of up to 200,000 new jobs over the next decade.
‘Reshoring’ – the opposite of outsourcing – is a growing trend in British business, according to analysis by PwC.
It is estimated that reshoring could provide around a 0.4-0.8% boost to the UK’s GDP by the mid-2020s, which equates to about £6-12 billion.
John Hawksworth, chief economist at PwC, said:
“While the manufacturing industry will benefit, reshoring is also expected to have an impact on internationally mobile services activities. We estimate, for example, that it could create up to 20,000 jobs over the next decade in the areas of research and development, business support services and telecommunications.”
Several reasons have been given to explain this trend, including: a need to be closer to consumers to speed up shipping; a reduction of the wage gap between the UK and the Far East; unpredictable transport costs; and the increasing importance of quality control.
Darren Jukes, UK manufacturing leader, PwC, said:
“Reshoring offers significant opportunities for UK manufacturing in terms of growth and job creation… It also highlights the highly competitive positioning and attractiveness of the UK manufacturing industry against global competition.”
Photo by Jess Loughborough