After you reshore, refocus on exports

Published: 14th Sep 2017

It might not yet be a ‘movement’ exactly, but interest in the concept of reshoring from UK manufacturers is certainly building momentum.

After years of outsourcing production abroad at the expense of domestic industry, bringing it back home now makes sense for all sorts of reasons.

First of all, the UK continues to carry a significant trade deficit between imports and exports. When times were good, being a significant net importer didn’t seem to pose any problems, and was seen as a sign of our economy aligning around consumption and service in a globalised market.

But the economy has struggled for the best part of a decade now, and the balance of payments has only increased. Last year, the deficit was £156.2 billion. That is a big discrepancy between outgoings and incomings for an economy struggling to grow.

Secondly, there is Brexit. The EU remains by far and away the UK’s biggest trading partner, and with so much uncertainty surrounding how that relationship will pan out, looking to bolster the domestic economy with a renewed focus on manufacturing is a sensible step.

 

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