UK Manufacturing Supply Chain Insights

There is a clear sign of patriotism among UK manufacturers as values, loyalty and confidence hold firm. Given the current economic climate, a focus on domestic strategies and procurement is understandable however manufacturers must not be afraid to interact on the global supply chain stage.

UK manufacturing is viewed as a vital component in the overall global manufacturing supply chain, but loyalty amongst UK manufacturers to buy British may result in missed global opportunities.

In our recent survey researching the manufacturing supply chain, we note a marked propensity of UK manufacturers to choose suppliers close to home. The results present evidence that the high cost of logistics, reflecting escalating fuel prices, are most likely to play a part in the decisions concerning supply chain sourcing.

Almost two thirds of those surveyed source commodities (41%) or components (20%) for their products from the UK rather than abroad (39%), with over half (53%) producing goods that are sold to the UK end user or used as components in UK production. For those that do source inputs offshore, 32% look to China as a key market, followed by 19% who source from Germany.

When it comes to choosing suppliers and winning business, the findings show quality is a defining factor. 40% of manufacturers surveyed select a supplier based on ‘quality’, followed by 33% who stated ‘price’. This perspective is reinforced when asked what wins them business with the key firms they supply: a majority 57% stated ‘quality’, although only 16% believe ‘price’. Despite the challenging economic climate, there is confidence amongst UK manufacturers when it comes to stability and security of their place in the supply chain. Self-confidence and traditional values of quality appear to be key drivers behind UK manufacturers’ supply chain strategies.

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