What is reshoring: is it right for your business?

What is reshoring?

Reshoring, the process of bringing manufacturing operations back to the domestic market from where they had been previously outsourced, is a growing trend gaining significant momentum. It involves the relocation of manufacturing processes from foreign countries back to the domestic market. As markets increasingly face global supply chain disruptions and consumers prioritise local production, reshoring offers a compelling alternative.

The COVID-19 pandemic highlighted the vulnerabilities of long, complex supply chains, with national lockdowns slowing or even halting the flow of raw materials and finished goods, disrupting manufacturing as a result. The pandemic forced supply chains to develop new agility to carry forward. Reshoring is one approach can help mitigate risks associated with disruptions and ensure a more reliable flow of goods.

New research suggest 82% of UK manufacturers plan to accelerate their reshoring efforts 58% already having some form of reshoring impact the job market and create new opportunities for skilled professionals.

What does this mean for your business?

• Increased competition: As more businesses reshore, the competition for skilled talent may intensify.
• New job opportunities: Reshoring can create new jobs and boost local economies.
• Salary benchmarking: To attract top talent in this competitive landscape, it's crucial to benchmark salaries against industry standards.

Download our 2025 Salary Guides to get the latest data and insights on compensation benchmarks.

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Advantages and disadvantages of reshoring  

Explore the opportunities, benefits, and challenges of bringing manufacturing back to the UK. With a growing demand for locally-made products, reshoring can offer advantages to businesses in terms of supply chain resilience, consumer sentiment, and environmental impact.

Let’s get into the pros

Reshoring offers several advantages, including:

• Job creation:  Reshoring can lead to a surge in job creation within manufacturing, logistics, and related industries. This increased demand will drive a higher need for skilled professionals in areas such as engineering, operations, and supply chain management. As more businesses reshore, the competition for skilled talent may intensify. As a result, organisations will need to offer competitive salaries, benefits, and career opportunities to attract and retain top talent.
• Economic growth: Increased domestic manufacturing can stimulate economic growth by boosting consumer spending and investment.
• Reduced environmental impact: Shorter supply chains can reduce carbon emissions and other environmental impacts associated with transportation.
• Improved quality control: Having manufacturing operations closer to home can improve control over production, improving quality control, and reduce defects.
• Enhanced innovation: Reshoring can foster innovation and collaboration between businesses and research institutions.

But what challenges do organisations need to be mindful of?

While reshoring presents significant opportunities, it also comes with challenges:

• Higher costs: Reshoring can be more expensive than outsourcing due to factors such as higher labour costs, regulatory compliance, and infrastructure investments.
• Skill shortages: A shortage of skilled workers in manufacturing, requires investments in training and education. Explore solutions and tactics for how to develop your talent pipeline in engineering and manufacturing.
• Infrastructure needs: Reshoring may necessitate upgrades to infrastructure, including transportation networks and industrial facilities.
• Competition: Reshoring businesses may face competition from foreign manufacturers with lower costs and established market positions.

While reshoring offers many opportunities for job creation, economic growth, and improved sustainability, it also presents challenges such as higher costs, skill shortages, and infrastructure needs.  

For UK businesses looking to build back better in 2025, with reshoring as a key avenue, it’s key to carefully weigh the pros and cons, assess your specific circumstances, and develop strategies to address potential challenges. When it comes to finding the right talent to achieve your goals, you don’t have to do it alone. Download our 2025 Salary Guides for valuable market insights and salary data to inform your decision-making process.

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Partnering with recruitment experts for success

By leveraging the insights and resources of experienced recruiters, businesses can accelerate their reshoring efforts and position themselves for long-term success.  

To facilitate a smooth reshoring process and address hiring challenges, partner with specialised recruitment agencies like Michael Page. 

With our knowledge in engineering and manufacturing, we can help you find specialised skills. We can also guide you through complicated hiring processes and help you build strong teams.  

If your organisation is looking to stay ahead and expand local production in manufacturing, logistics or supply chain industries, get in touch with our expert consults for recruitment support.

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