Rise of UK reshoring and nearshoring

Pektron’s group supply chain director, Jayson Hatton

Pektron’s group supply chain director, Jayson Hatton, steps readers through five key reasons why returning production to Britain is good for business, society and more.

If recent global crises prove anything, it’s the importance of reshoring and nearshoring strategies that bring production back to the UK or closer to European markets. This shift offers potential benefits for businesses and society.

Reduced costs and risks: While initial labour costs might be lower abroad, hidden expenses like transportation, logistics and intellectual property protection can erode those savings. Reshoring/nearshoring reduces these costs and mitigates risks associated with complex global supply chains, minimising disruption and delay.

Enhanced quality and control: Shorter supply chains enable closer quality control and quicker response to customer needs. UK manufacturers boast a skilled workforce and rigorous quality standards, ensuring products meet and exceed expectations.

Sustainability and security: Reshoring/nearshoring reduces carbon footprint associated with long-distance transportation, aligning with environmental sustainability goals. Additionally, it strengthens national security by reducing reliance on foreign manufacturers for critical electronic components.

Building resilience: Lengthy supply chains reduce flexibility and increase risk. Reshoring/nearshoring creates a more resilient manufacturing base less susceptible to global disruptions.

Innovation and economic growth: Bringing production in-country fosters closer collaboration between manufacturers, designers and researchers, accelerating innovation and product development cycles. This revival of domestic manufacturing can create high-skilled jobs, boost the economy and revitalise local communities.

Reshoring and nearshoring of electronics manufacturing offer a compelling opportunity for the UK. By reducing costs, enhancing quality and boosting innovation, this trend can revitalise domestic industry, create jobs and position the UK as a leader in sustainable and secure electronics manufacturing. While challenges exist, the potential benefits outweigh the risks, making this a strategic shift worth pursuing.

Celebrating 60 years in business in 2024, Derby-based Pektron works with customers across industries including automotive, EVs, construction, agriculture, off-highway, HVAC, consumer/leisure, medical hygiene and safety. The company maintains high standards by managing all aspects in-house. Pektron is a full-service provider working with customers from concept and specification, through development, validation, testing, production engineering and into manufacture. Hardware and software experts provide ongoing support, manage obsolescence and supply spares. It really is the Best of British.