Almost a third of manufacturing businesses looking to reshore activity to UK, according to poll
About The Authors
19th November 2020 15:26 - Industrial
Almost a third of manufacturing businesses looking to reshore activity to UK, according to poll:
A survey of manufacturing businesses, which seeks to track how desirable the UK is for foreign direct investment (FDI), has found that almost a third (32%) said they would be looking to reshore activity to the UK. It also found that 32% are planning to invest in the UK over the coming year.
The EY UK Attractiveness Survey polled 220 non-UK decision makers, finding that more than two-fifths (43%) plan to follow through with UK investments that had been planned prior to the Covid-19 crisis, however this was down significantly from April. when it was almost three quarters (72%).
The research also found that 35% have reduced their UK FDI plans over the next 12 months, with 17% saying they have put them on hold temporarily. One in twenty survey participants (5%) said that due to Covid-19 they have cancelled their UK plans, while just over a fifth (21%) said they have increased their investment – a rise of 16 percentage points since April when 5% of respondents said the same.
When asked about how attractive the UK is in the longer term, more than half the respondents polled (53%) said its appeal will grow over the next three years, which marks an increase a third (34%) who said the same in April, and a quarter (26%) who said the same 12 months ago.
Analysis by EY reveals that changes are being driven by changes in supply chain strategies, with 98% of manufacturing participants revealing they are planning to remodel their supply chains going forward (66% of the total respondents polled).
Almost a third of respondents (32%) said they plan to move to regional supply chains in the future, which rises to 40% amongst manufacturing respondents. Furthermore, 30% said they are planning to reduce their reliance on a single country, which increases to 42% amongst manufacturers.
Sign up for free insights from your sector…
We hope that you have found this article useful. This section is freely available for all to use. Please help support it by liking us or following us on our social media platforms:
For updated Industrial insights please follow us on @DJS_Industrial or use our RSS feed
Other Industrial Research Findings
Other Latest Market Research Insights