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Reshoring could create 37,000 Yorkshire & the Humber jobs

Yorkshire and Humber could potentially gain 37,900 jobs in 10 years from reshoring, according to new research from EY.

The report, Reshoring – Time to seize the opportunity, calculated that reshoring could contribute £1.7 billion in GDP over the 10 year period to 2025.

The region came second of the 11 UK regions analysed in terms of potential job creation via reshoring, behind only the North West (£2.4 billion, 46,200 jobs), and joint fourth with the East Midlands (£1,7 billion GDP, 35,100 jobs) by GDP that could be added by reshoring, behind only the North West, the South East (excluding London) (£2.0 billion GDP, 35,500 jobs) and the West Midlands (£1.8 billion GDP, 35,000 jobs).

Reshoring has the potential to contribute a total of £15.3 billion of GDP and more than 315,000 jobs to the wider UK economy, presenting a once-in-a-generation opportunity, according to the report.

Stuart Watson, Yorkshire and Humberside senior partner at EY, said: “These results are hugely encouraging for the Yorkshire region, which clearly has significant potential to attract reshored activity over the coming years.

“Offshoring in the 80s and 90s saw a dramatic reduction in British manufacturing and a shift to services industries that resulted in a fundamental restructuring of the British economy.

“While some regions saw rapid growth and wealth creation, others suffered from high rates of unemployment.

“But the economics underpinning this trend appear to be reversing, and present Yorkshire and Humber, and the wider UK with a once-in-a-generation opportunity.

“While increasing wages in developing countries are eroding their labour cost advantage, there are many more factors driving business to choose our shores.

“The desire to guarantee quality and the imperative to reduce time to market are increasingly important drivers of location decisions.”

This was posted in Bdaily's Members' News section by Clare Burnett .