Middle-market firms consider reshoring

A quarter of middle-market firms in the UK are considering bringing back some business activities to the UK over the next 3 years, a study by GE Capital and Warwick Business School has found.

The research found that 26% of mid-market firms are looking to reshore at least some of their activities, potentially creating 378,000 jobs.

According to the report re-shoring could:

  • increase annual revenues by £3.8 million per firm
  •  increase total revenues by £27.6 billion per year.

However, not all regions will benefit evenly from re-shoring:

  • 42% of surveyed businesses will re-shore to either London or the South East
  • London is the most popular destination, with 28% of surveyed firms reporting they will head to the capital
  • in contrast, Wales (1%) and Northern Ireland (2%) are the least popular.

The top 3 reasons for businesses wanting to re-shore business operations were:

  • management or control issues
  • the UK business culture
  • levels of productivity in the UK.

Professor Stephen Roper of Warwick Business School said:
“Historically, re-shoring activity has focused on regions outside London, yet our research indicates that mid-market firms see the value of being active in the Capital, despite the high costs associated with doing business here.”
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