There is the possibility that out of the global carnage of the Covid pandemic and Russia’s attack on Ukraine, there’s an upside for the UK’s long-term economy. Of course, the Brexiteers will jump on this as part of their grand plan as manufacturers start to restore supply chains to gain reliability over cost through reshoring.

Analysis shows that British manufacturers are bringing back production to the UK in a “reshoring” exercise. It is an attempt to address the supply-chain chaos caused by world events and by Brexit.

The FT reports that – three-quarters of companies have increased the number of their British suppliers in the past two years, according to a survey by Make UK, the manufacturers’ trade group.

Almost half of companies said they intended to further boost their UK supply base in the next two years. Conversely, more than 10 per cent said they planned to reduce reliance on Asian suppliers over the same period.

Make UK said successive economic shocks, including the war in Ukraine, were forcing manufacturers to reverse the decades-long move to offshore supply chains as producers were increasingly facing delays in the arrival of components and materials.

The reality has been over the last two years that critical just-in-time supply-chain processes have started to force UK companies to turn away from low-cost Asian production sources to more reliable suppliers closer to home.  This is another reason why inflation is increasing.

There have been long-held beliefs in constantly reducing costs through the offshoring of manufacturing without ever considering what might happen if there was a dramatic shift in geopolitical allegiances and alliances. This belief has left many companies ‘high and dry’ over the last two years. Volatility for any manufacturer is dangerous, and whilst predictability and reliability may come at a cost – resilience of the business itself is paramount. Reshoring is soon to become the new in-word we’ll be hearing more of.