Friday, 13 December 2013

Reshoring.

Perhaps one of the questions that we should be asking our government here in Wales is, "What are you doing about 'reshoring'?

Yes, I know,  I didn't have a clue what it meant either, until I read this article in The Investor.

Basically reshoring means those companies who have over the last decade or so have 'offshored' their production but who are now returning to the UK because the costs are similar.

One of the companies to 'reshore' are Symington's Golden Wonder who have returned to Leeds and as one of their executives said:
That cost difference has narrowed, ... as pay in developing markets has risen. Wages in China's Coastal areas... have risen 350% in the past 11 years... 'Back in time' Chinese production was 30 to 35% cheaper . Today the company can make noodles in its Leeds factory for roughly the same.
Another company to move home is Caldeira who are moving back to Liverpool after 10 years in China, but what Caldeira are finding is that the skill base for their production workers is no longer there.

Hornby is another company 'reshoring' 10% of its production back to Sussex after closing its Margate factory back in 1999.

So are the Welsh Government actively lobbying those companies who wish to reshore to come to Wales or are they just 'dishing' the money out to facilitate companies moving from one part of Wales to the other

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