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editor’s Comment
Over the last few decades, many UK companies have turned to overseas production as a way to reduce production costs. In recent times, however, this has become less reliable due to a combination of factors, including COVID-era supply disruptions, geopolitical tensions, higher energy costs, Brexit and so on. With UK companies increasingly looking for shorter lead times, supply security, a reduction in carbon footprint and higher regulatory visibility, moving production closer to home or bringing production back to Britain itself – ‘nearshoring’ or ‘on/reshoring’ – seems to be the answer. In fact, according to a report from Capgemini, the share of companies investing in nearshoring, or combined reshoring and nearshoring, increased from 42% in 2024 to 56% in 2025.
This all sounds very promising. However, earlier this year the UK Government launched its
leespring.co.uk
new steel policy which was designed to help rebuild domestic steelmaking. But, Stephen Morley, President of the Confederation of British Metalforming (CBM), believes “misguided quota reductions, compounded by the inevitable imposition of tariffs, have left metal stockists and manufacturers facing increasing commercial pressures, tighter margins and the prospect of job cuts across the supply chain.” So rather than helping the industry, this new policy is “beginning to have a devastating impact on the downstream manufacturing sector”. Footprint Sheffield, one of the UK’s last remaining hand tool forges, is now thinking of scaling back UK
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production, importing finished goods, and even winding down production (see news story on page 7). Richard Hilton, chairman of Fabweld Steel Products, has also said: “The intention of this policy is
to protect UK steel and domestic manufacturing… UK fabricators will face higher costs that overseas competitors simply don’t face. The rational response for any business is to manufacture abroad and import the finished product – and that is exactly what this policy will incentivise.” So, while many manufacturers are considering nearshoring or reshoring, it seems that in some
industries, government policies are starting to challenge the long term viability of UK production. Let me know what you think by emailing:
rmorling@datateam.co.uk.
rachael morling - editor
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