Re-shoring

• What is re-shoring?

  Bringing previously off-shored production back to the domestic country
• What are the advantages of re-shoring?

  • Faster delivery times - beneficial for just-in-time systems
  • Enhanced brand image - promotes "made in UK" ethos, supports local jobs
  • Greater flexibility - can respond quicker to market demand changes
• What are the disavantages of re-shoring?

  • Higher costs - particularly labour and compliance
  • Inital setup costs - re-establishing operations may be expensive
  • Potential loss of skilled workers
• When is re-shoring most suitable?

  • If political or economic risks rise in off-shored country
  • When automation reduces labour cost differences
  • When quality is a competitive advantage
• When is re-shoring not suitable?

  • If cost savings abroad are essential for competitiveness
  • If business lacks economies of scale in the domestic country