How to make
reshoring a success
Reshoring combined with an
investigation of alternative
manufacturing methods is promoted
by Dawson Shanahan
Even before Covid-19 exposed the fragility of extended global supply chains, interest in the reshoring
of critical component and part manufacture was growing. Precision engineering specialist Dawson
Shanahan, a long-time proponent of UK-based manufacturing, gives Machinery readers its view on the
trend and offers practical advice on overcoming reshoring challenges
“When production centres
in China and other Far-
Eastern locations suddenly
closed down due to the pandemic, western
manufacturers were thrown into chaos,”
says Jeff Kiernan, Dawson Shanahan’s
commercial director. “By then, many in the
UK had already been thinking for some time
about moving their manufacturing plants back
home and sourcing from local, rather than
overseas suppliers – not least because of the
uncertainties surrounding Brexit.”
He continues: “The return of manufacturing
to Britain is likely to have strong backing from
the government in its drive to protect jobs and
boost the economy. We believe it’s also a
popular idea with the public, most of whom
would like to see the UK as a top- ve
manufacturing nation again currently ninth.
Meanwhile, deepening awareness and concern
over climate change is another driver of
opinion in favour of shortening supply chains.”
Dawson Shanahan’s business is built on
designing, prototyping and engineering
customer-speci ed components and
SUBCONTRACTING WE NEED TO TALK ABOUT RESHORING
assemblies for sectors ranging from
automotive passenger, commercial and
electric mobility to aviation, power distribution,
power electronics and medical. Always UK
based, the company believes rmly in the
innovation, productivity and skills of Britain’s
manufacturers.
The quality of British-made goods is
recognised globally, and UK manufacturing
has a solid base from which to grow, it says.
Manufacturers’ organisation Make UK
reported in September 2020 that Britain
ranks as number nine in the list of leading
manufacturers and 10 in terms of global
exporting. Expanding by 7% over the last
ve years, UK manufacturing currently
employs 2.7 million people and accounts
for 53% of the country’s exports – totalling
£191 billion in 2019.
RESHORING BENEFITS
As differences in labour costs between Britain
and countries like China continue to narrow,
there is less and less incentive for offshoring.
At the same time, local and national
government tax incentives are encouraging
companies to reshore. The advantages of
reshoring are as follows:
Lower supply chain risk – Local supply
chains offer simpler logistics and greater
agility, so gaps resulting from any sudden
change can be quickly lled;
Shorter delivery times – Customer orders
are ful lled more quickly, while rapid
transmission of prototypes and parts for
testing reduces time to market for new
products;
Lower minimum order quantities – With
local suppliers, small orders become practical
and less cash is tied up in stock;
Higher quality – This key UK strength is
often the prime motive for reshoring.
Far- Eastern suppliers may be capable of
delivering the required quality, but
assessing their facilities, processes and
products, and correcting any problems,
is dif cult at such a distance;
Closer communication – As above, long
distances are an obstacle to effective cooperation
and problem resolution;
www.machinery.co.uk | MachineryMagazine | @MachineryTweets | December 2020 17
/www.machinery.co.uk