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Re-shoring, Fact or Fiction?

July 16, 2016

Re-shoring, fact or fiction?

We all know that in recent years there has been a ‘buzz’ in the general Manufacturing Sector about more product being sourced from within the UK, but what do the actual numbers tell us?

Unfortunately, not all manufacturing sectors can keep track of their supply chain, but in 2009 the Automotive Council was founded. Their remit was to help develop supply chains and report market trends for UK based car manufacturers. The figures produced should act as a good barometer for the Manufacturing Sector as a whole.

In summary, the amount of value sourced by UK car manufacturers from UK tier-1 suppliers has increased from 36% in 2011 to 41% in 2015. Now, obviously not everyone can be a tier-1 supplier, but these companies usually ‘spread the wealth’ to those of us further down the food chain.

We should remember however, that during this period, new car output increased by around 16%, but even so, the estimated compound growth in volume of parts is an impressive 32% in just four years. In terms of value, an estimated £3.2 billion has been added to the supply chain revenue. There should also be more to come, particularly in light of the recent predictions of record vehicle output levels this year.

This is obviously very encouraging news, however it’s worth noting that Germany and France are believed to achieve a local sourcing content of around 60%, this being widely considered as the upper limit of what can be realistically achieved.

The Automotive Sector is obviously only one element of a much wider audience for the Plastics industry, but there should be some common prevailing trends, even without the assistance of a dedicated supporting body.

If you are involved with the procurement of any type of plastic injection moulded product then talk to Counterplas Ltd who have been plastic injection moulding for over 25 years and more than happy to discuss the advantages of re-shoring.

You may be surprised how competitive we can be, especially when the cost of logistics, cash flow, stock control, response times and resolution of quality issues are taken into account. When you also factor in the Carbon footprint and the ‘Feel Good Factor’ associated with ‘Made in Britain’ on the label, you may be very pleasantly surprised.

You can help us move closer to the ‘magic’ 60% by getting in touch and seeing how we can help bring your production home.