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02 Mar 2015

Made In Britain: Benefits to Making British

Made In Britain: Benefits to Making British

Over the past several years there has been real wage growth in emerging economies such as China. This means that where it was once possible to reduce production costs by moving manufacturing operations to countries where labour is cheaper than here in the UK; this is no longer true today.

One study found that between 2005 and 2010, the average Chinese factory worker’s wage increased by 19% a year. This is just one of the many reasons for manufacturers reshoring production back to UK shores.

According to resent research the trend in reshoring could bring between 100,000 and 200,000 jobs back to the UK within the next decade, increasing national output by up to £12 billion.

Other benefits of reshoring are:

  • Short Supply Chains

Long supply chains where manufacturing is divided across the globe, so that each component is made wherever it is cheapest, makes supply chains highly vulnerable. For example, extreme weather, natural disasters and geopolitical turbulence can halt the production of one or more of the components and bring the entire manufacturing supply chain to a halt. By having your manufacturing operations all in one place and your suppliers close, your supply chain is much less vulnerable to these disruptions, and in turn so are your manufacturing operations.

  • Reduced Transportation Costs

With the cost of transporting goods rising, companies can no longer rely on the consistently cheap shipping they had previously been used to. Buy having your manufacturing operations close to your customer base, transportation costs will be minimal.

  • Short Lead Times

A huge benefit stemming from shortened supply chains and low transportation costs is short lead times. You can respond to the latest trends and fashions and tailor production more closely to sales when there is only one week’s waiting time rather than four. As a result you can offer a more customized product to your customers, enabling you to stay competitive.

 

At Fascia Graphics® all our membrane keyboards, graphic overlays and screen printed labels are produced locally at our Chippenham based factory, sourcing materials from UK based suppliers where possible. We are proud supporters of British manufacturing, which can be seen from the fact we signed up to the Made in Britain campaign earlier last year, and our use of the Made in Britain Marque. 

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