Manufacturing Pushes Back UK Export Prospects. We are looking forward to meeting with various European countries tomorrow at the ExploreExport Convention.
This is a medium to introduce products and services through one to one meetings with country representatives. It will be interesting to evaluate potential opportunities and to promote our global presence.
The UK prospects are getting better for Manufacturing here, as rising costs in Asia are forcing businesses to rethink sourcing strategy. Companies across the country have already taken the decision to move some or all manufacturing operations back to Britain as wages and transportation costs have risen across Asia. Goods as diverse as toys, high-end textiles and washing machines are being made in bulk here again as higher costs have tipped the balance in favour of local markets.
The move to bring manufacturing back onshore is still a trickle rather than a trend, but it is one the government will be keen to harness as it seeks to rebalance the economy away from the services sector.
Philip Green has ambitions to make 20% more clothing in the UK – if he can find the factories.
Rob Law who set up Trunki, the children’s ride-on suitcase maker, after being rejected on the TV show Dragons Den, has recently moved his production from China to his own Factory in Plymouth. He (like us) is passionate about the importance of homegrown manufacturers.
“This is where the UK can really stand head and shoulders above China: creating innovative and well-engineered products that are more sustainable, drive better business performance and build stronger brand value. I’m thrilled to have brought the Trunki back home”
When Impulse was conceived in 2005, the China supply chain option was in its ascendency, and we are living proof that there is the consistent demand for a UK manufacturing.
Timescales and costs are especially challenging now, and retail display businesses in the UK are in high demand.
We are finding that whilst we still offer the longer lead-time, Far East build option, the cost differential is so small now that brands are questioning the risks associated with this option.
Transport costs are now proving to seal the fate of the Asian option, and whilst there will always be a place for certain products to be made in China, we are proud to promote “Buy British”.
Lack of government funding has got to come under closer scrutiny – the half-hearted attempt by Vince Cable and the coalition will need reviewing, and coupled with the advantage of weak sterling, means that UK business should be working hard to promote Export, and the advantages of local manufacturing.
Brands are right to prefer to consult UK based Retail Creative Agencies, given the enviable quality of talent and the great work that is coming onto the high street.
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