There is much debate regarding reshoring UK manufacturing jobs. If you are thinking about returning your production to the UK. or moving your manufacturing abroad, the following are some benefits of reshoring to consider.
Boosts The Credibility Of Your Products
When a product is labeled “Made in the UK” it can increase trust in consumers, depending on the type of products that you produce. It can be particularly important for clothing, food items, and products where consumer safety is a major concern, such as baby and children’s items. For small retailers, it might require spending a bit more money on their per-unit production expenses. However, if you sell products that consumers know are made in the UK, the increase in unit sales of goods made in the UK can help to balance out the added expenses.
Amway is a big company that has enjoyed the benefit of reshoring. A major share of the direct sale company’s business is in Asia. When they explored the international manufacturing options that were available, the company discovered that in their health and nutrition bars products, two of the main markets that drive their sales in Asai, a label of “Made in the USA” was considered to be valuable by the target audience. That is why Amway found it was beneficial to its business to keep producing food and health products in the United States.
Lower Shipping Costs
If your company has long shipping times, expensive shipping rates, or products heavy, large products, it can cause international manufacturing to be more costly than UK manufacturing. For example, if your small business designs and manufactures furniture, it might cost less to make a sofa or a table in China, it might cost a lot more to ship those products to your customers that can offset any manufacturing savings.
The shipping cost differences for large companies might be even greater, depending on how many products are manufactured every month.
