From Offshoring to Reshoring: Re-emerging Trends

Over the last forty years, manufacturing has witnessed exponential growth in offshoring to low-cost countries, as part of a cost leadership strategy (Porter, 1985). However a re-evaluation of the cost-benefits of offshoring has signalled a decline in value, and unveiled reshoring as a highly viable alternative; especially following the introduction of new, innovative technology. Despite a plethora of research relating to manufacturing decisions, very little research exists on the drivers behind the UK textiles industry and their production strategies. The research study combines a semi-structured interview with informants from four UK companies, and a survey distributed to a network of UK textile firms to ascertain the main drivers supporting manufacturing decisions. The research findings suggest that cost and quality are the main drivers for offshoring, but in recent years there has been a declining cost-benefit ratio. The increasing cost of overseas production in conjunction with growing CSR directives and an improvement in technology has resulted in UK firms returning production to the UK. The study would benefit from further analysis of the value of supplier-relationships, but does offer an indication for the rationale behind manufacturing decisions; where research is currently limited. The overall study highlights the changing manufacturing trends within the UK textile industry