Manufacturing firms 'returning to the UK'

An increasing number of manufacturers are returning to the UK over concerns about quality and the rising costs of freight, a new report has revealed.

A study carried out by manufacturing group EEF and accountancy firm BDO has shown that one in seven firms have relocated back to the UK in the last two years.

The report revealed that companies had initially been attracted by cheaper labour in places such as eastern Europe and Asia, but 14 per cent of businesses have so far decided to return because the savings were not as great as expected.

Lee Hopley, EEF chief executive, said: "If you look at how UK manufacturers compete in UK global markets, it's about quality, it's about customer service and it's about delivery times."

The news comes after George Derbyshire, chief executive of the NFEA - the national enterprise network, said that manufacturers currently based in the UK are now emerging from the recession.

Posted by Chris Slay