One in six firms has moved re-shore work back to the UK due to savings in the face of rising costs in traditional offshoring destinations.

In a report entitled ‘Backing Britain – a manufacturing base for the future’ found that manufacturing companies were increasing sourcing back to the UK, due to competitive logistics costs and improved quality.

The report compiled by EEF and law firm Squire Sanders, identified that reshoring had increased over the last three years, with only one in seven firms bringing work back to the UK in 2009. The report found that 40 per cent of companies that did reshore services experienced increased turnover, while 60 per cent saw increased profit.

The report concluded that: “It is now key that government policy supports the most competitive business environment possible so that we continue to see more high value, innovative manufacturers invest in and sell from the UK.”