Press release

New government support to encourage manufacturing production back to the UK

This news article was published under the 2010 to 2015 Conservative and Liberal Democrat coalition government

UK Trade & Investment and the Manufacturing Advisory Service launch Reshore UK a service to help companies bring production back to the UK.

UK Trade & Investment (UKTI) has joined forces with the Manufacturing Advisory Service (MAS) to launch Reshore UK, a new 1-stop-shop service to help companies bring production back to the UK.

UK companies are increasingly looking to reshore manufacturing, textiles, software production and call centre work to the UK instead of outsourcing overseas. This is due to the combination of a strong and stable economy, competitive corporate tax rates, a good regulatory environment, strong legal frameworks and a dynamic labour market.

UKTI has identified 1,500 manufacturing jobs reshored in the UK since 2011 and a MAS survey shows companies citing costs, quality and reducing lead times as the top 3 reasons for moving production back to the UK.

Reshore UK will provide a matching and location service, access to advice and support and a named individual to help each company. MAS’s role is to help support small and medium sized businesses to be globally competitive and to ensure there is capacity in the UK supply chain to take advantage of the reshoring opportunities. UKTI will use its global networks to attract foreign companies to invest.

By joining up the range of support available, the new service Reshore UK will be accessible for both UK and international firms and will ensure that they get the right support, when they need it most. It sees government working in partnership with industry in line with the Industrial Strategy, giving business the confidence to invest, creating more jobs and growth in the UK.

Prime Minister David Cameron who is speaking at the World Economic Forum in Davos this morning said:

For years UKTI has played a vital role helping our businesses to export and encouraging inward investment. Now, as part of our long-term economic plan, I also want us to help businesses bring back production to Britain. This new service will offer dedicated support for businesses that want to capitalise on the opportunities of reshoring, creating new jobs and ensuring that hard-working people can reap the benefits of globalisation.

Business Secretary Vince Cable said:

British industry is coming home. Over the last few months I have welcomed many companies who have taken manufacturing, textiles, call centre work or software abroad, bringing jobs back to the UK. This is a sign that diverse, high-quality British manufacturing is on the rise once again.

It also highlights the ability of British-based business to stand strong in the face of global competition. The partnership between UKTI and MAS will further support British industry so they can continue to succeed. This builds on our long-term partnership with industry in key sectors like aerospace, automotive and oil and gas, which is giving business the confidence to invest in the UK and drive growth.

Steven Barr, Head of the Manufacturing Advisory Service (MAS), said:

Reshoring is a huge opportunity for UK manufacturers and we are delighted to be working in partnership with UKTI to give both domestic and international firms access to this 1-stop service.

Our expert advisors working on the ground will continue to ensure firms offer world class manufacturing performance and have the capacity in place to take advantage of larger companies bringing production home.

The UK government has also announced additional support for UK businesses through new additions to the Business Ambassador and Trade Envoy programmes, strengthening the UK’s overseas business networks.

The Trade Envoys will promote trade and investment in emerging and growth markets and showcase the business opportunities available overseas to UK small and medium sized businesses. Business Ambassadors act as powerful advocates of the UK abroad, promoting the UK’s excellence, economy, business environment and its reputation as the international trade and inward investment partner of choice.

The Business Ambassador network includes a wide range of expertise and experience, as well as a new generation of entrepreneurs and business leaders covering a range of sectors, including financial services, advanced engineering, energy, life sciences, education, infrastructure, creative industries, professional and business services, ICT and agri-business.

The appointments come as new Trade and Investment Minister Lord Livingston publishes the next phase of the trade strategy, focusing on fast growing markets, increasing export support to mid-sized businesses and delivering on the promise of Free Trade Agreements.

Trade and Investment Minister Lord Livingston said:

Exports to high-growth markets like China, India and Brazil are at all-time highs and the UK is the number 1 destination for foreign investment in Europe. However there is still more to do to.

This means more support for medium-sized and small companies looking to export, more determination to attract industry from around the world to our shores and a resolve to make sure that British firms benefit from trade deals that are being negotiated.

Notes to editors:

  1. Britain Open for Business – The Next Phase

  2. Full list of Business Ambassadors

  3. Full list of Trade Envoys: available from UKTI press office.

  4. The Prime Minister’s Trade Envoy programme is designed to help promote trade in emerging and growth markets, beyond those already identified in the UKTI strategy. The Trade Envoys’ prime focus is to showcase to SMEs in the UK foreign opportunities available in ‘their’ markets. The Trade Envoy programme was first launched by the Prime Minister in November 2012.

  5. Their role includes participation in up to 4 UK-based activities and 2 overseas trips, which will enhance their credibility in the UK and deepen their knowledge of the country whose opportunities they are profiling.

  6. The countries covered by the Trade Envoys are Emerging and High Growth Markets, primarily where the opportunities tend to be less well known and where historically ministerial attention has been light. We have also looked at markets’ level of trade and potential for growth over the longer term, as well as barriers to entry (political, governmental or administrative) where the addition of a Trade Envoy could make a difference over time.

  7. The Business Ambassador Network of key business and academic leaders act as powerful advocates of the UK abroad, promoting the UK’s excellence, economy, business environment and its reputation as the international trade and inward investment partner of choice.

  8. In the 2012 Autumn Statement, UKTI was awarded an additional £70 million for each of 2013/14 and 2014/15, enabling the recruitment of more international trade advisers around the country, expansion of existing services including the Trade Access Programme (TAP) and the Overseas Market Introduction Service (OMIS), and support to expand the range of assistance available to UK companies through overseas British chambers of commerce.

  9. The government’s economic policy objective is to achieve ‘strong, sustainable and balanced growth that is more evenly shared across the country and between industries’. It set 4 ambitions in the ‘Plan for Growth’, published at Budget 2011:

  • to create the most competitive tax system in the G20
  • to make the UK the best place in Europe to start, finance and grow a business
  • to encourage investment and exports as a route to a more balanced economy
  • to create a more educated workforce that is the most flexible in Europe

Work is underway across government to achieve these ambitions, including progress on more than 250 measures as part of the Growth Review. Developing an Industrial Strategy gives new impetus to this work by providing businesses, investors and the public with more clarity about the long-term direction in which the government wants the economy to travel.

10.UK Trade & Investment (UKTI) is the government department that helps UK-based companies succeed in the global economy. We also help overseas companies bring their high quality investment to the UK’s economy – acknowledged as Europe’s best place from which to succeed in global business. UKTI offers expertise and contacts through its extensive network of specialists in the UK, and in British embassies and other diplomatic offices around the world. We provide companies with the tools they require to be competitive on the world stage. For more information on UKTI, visit www.ukti.gov.uk or visit the online newsroom at www.ukti.gov.uk/media.

11.MAS, which is funded by the Department for Business, Innovation and Skills, provides support for English SME manufacturers to improve and grow. Its 80-strong team of expert advisors work with companies on strategy, improving processes, bringing new products to market and developing supply chains.