The changing economics of manufacturing is likely to lead to thousands of manufacturing jobs returning to UK shores having been outsourced overseas in recent decades, a new report has concluded. Currently there are approximately 2.5 million people employed in manufacturing in the UK, a sector which accounts for 10.5% of economic output. The sector will see between 100,000 and 200,000 new jobs being created in the UK over the next decade due to the rising costs and regulations abroad, the study by the Royal Society for the encouragement of Arts, Manufacture and Commerce (RSA) suggested. The UK’s trade deficit could then be lowered by a third as a result of manufacturing jobs returning home, the RSA said.Ian Jones, Corporate Manager for SBF, said: “Manufacturers have had it especially tough in recent years; with rising energy costs, inflation and late payment culture all hindering cashflow”. “Thousands of jobs returning home to the UK is therefore good news for small businesses and SMEs, particularly in the Midlands, where there is a long-standing tradition of manufacturing excellence”, he concluded. The results of the study will also be welcomed by George Osborne, who recently suggested that Britain should be “carried aloft by the march of the makers”.
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