Firms switching production back to UK

Dec 31 2009 by Kelley Price, Evening Gazette

TEES Valley companies are among those bringing production back to the UK amid concerns over quality and the high cost of freight.

According to manufacturers’ association EEF and accountants BDO, one in seven British firms have repatriated production lines in the last two years, sparking hopes of a British manufacturing revival.

“Anecdotally, we have heard this a lot of late, particularly with high-quality, precision manufacturing,” said Tony Sarginson, EEF’s regional manager for the North-east.

“Places like China aren’t as cheap as they once were. It used to be a no-brainer. Now companies are weighing up the cost of shipping and downsides of an arm’s-length relationship with their suppliers.

“Our cost bases are better in this country and we have a higher degree of accuracy. I think we will see an arresting of the decline in UK manufacturing.”

Hartlepool’s Durable Technologies recently shifted production of its groundbreaking lighting module to Beta Electronics on Teesside Industrial Estate, having originally set up a production plant in Croatia three years ago.

Director Alex Carter believes the decision to bring manufacturing back to the UK is in large part responsible for the company’s new-found success in export markets, including Australia and New Zealand.