We live in a world of constant technological advances, changing consumer preferences and political upheaval. Therefore, business success depends on being responsive and adaptable. That can be a challenge if your goods are made on the other side of the world. As a result, a growing number of UK manufacturers are reshoring.
What is Reshoring?
In the 1990s, China, India and other Asian countries had extensive factories filled with low-paid workers. They could produce goods on a scale, and at a price, that UK firms were unable to match. Adding to the competitive advantage were incentives, so it made economic sense to shift production overseas.
However, times have changed. For a start, improvements in working conditions and pay, along with rising shipping costs have narrowed price comparisons. In addition, global challenges including Covid 19, shipping lane disruption and political instability have raised concerns about reliance on overseas manufacturing.
The market has also changed. While it was profitable to produce in bulk and benefit from economies of scale, this is now a risk. No business wants to be left with high volumes of stock when an update or shift in requirements makes a product redundant. This has a financial cost and is at odds with a growing move towards sustainability and waste management. Therefore, it makes sense that UK manufacturers are reshoring.
Investment in UK Manufacturing
The latest Make UK & PwC Executive Survey* and report in The Times** indicate that many UK companies are investing in returning manufacturing processes to the UK or Europe.
With manufacturing on the doorstep, it is easier:
- To be responsive and flexible.
- To have control over supply chain sustainability and traceability.
- To reduce lead times.
- To avoid the risk of economic, political or environmental disruptions.
- To attract customers who favour goods made in the UK.
It is hoped that the Government’s new UK Industrial Strategy*** will support reshoring, by breaking down barriers to encourage investment and growth. The plan aims to build stability and resilience in UK Manufacturing. The Make UK & PwC survey suggests that 47% of executives believe that the UK can be a competitive place for manufacturing activities.
Cardboard Packaging UK Manufacturer
As a UK cardboard packaging manufacturer that was established in 1987, we’ve seen many customers opt for lower-cost imports. With a direct price comparison, a bulk order of boxes from China is still cheaper than any UK manufacturer can produce. Despite this fact, we’ve consistently grown our in-house operations and customer base over the last 38 years.
Part of the reason is that we have no minimum order, meaning we can and do offer lower-volume runs. In addition, we don’t just produce off-the-shelf, standard packaging. We work with our customers to offer bespoke boxes. With an understanding of their goods, storage and shipping, we recommend board grades, box styles and finishes to best meet these requirements.
A high percentage of our output is industrial packaging and shipping boxes. We manufacture these cartons in double or triple walled cardboard, with or without inserts, printed handling instructions and QR codes for tracking.
Key Benefits of Local Suppliers
Our customers have a dedicated Account Manager, so they can pick up the phone and speak to someone who knows their business. We value continuity and responsiveness, so this is what we deliver. And, there are no language barriers.
Being relatively local, our customers can come and visit our factory and we can provide information on our Environmental & Social Governance (ESG). Equally, each delivery produces far fewer emissions and we have carbon offset opportunities for those who are on the path to Net Zero.
Are You Reshoring Manufacturing?
If your business is in the process of returning production from overseas and you are seeking a UK packaging manufacturer for industrial cartons and shipping boxes, get in touch. We can provide a quote, estimated lead times and sample boxes.
Call 01296 436888 or email enquiries@abcbox.co.uk
*https://www.pwc.co.uk/industries/manufacturing/insights/make-uk-executive-survey.html
