Almost a third of manufacturing businesses looking to reshore activity to UK, according to poll

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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.


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