One-third of North West manufacturers consider moving overseas

A large chunk of the North West manufacturing community is considering moving some of its plants or operations abroad, according to a new survey.

Research from professional services giant KPMG found that one-third (33%) of the region’s manufacturers are thinking of relocating part of their business overseas in the next three years, either to boost productivity or cut costs.

India and parts of the Caribbean, particularly Antigua and Barbuda, were highlighted as the most attractive.

Elsewhere, the research showed that a better educated workforce is the top priority for North West manufacturing executives.

It found that 52% of manufacturers with operations in the region think the skills and knowledge of the workforce need strengthening.

The respondents named it as the most important factor for improving productivity.

Meanwhile, creating a better supplier ecosystem and securing more supportive government policy came in second and third respectively.

KPMG’s head of internal audit for the North, Craig Wright, said: “Our report found that the majority of manufacturers value boosting workforce skills higher than specialist sector support and regional development.

“If the skills challenge is not effectively addressed, manufacturing and associated industries are at risk of decline, regardless of the region.”

Speaking further, Craig said that with some of the UK’s best higher education institutions located in the North West, manufacturers need to strengthen links with the region’s universities while investing in skills and development internally.

Doing so, he said, would “bolster the North West’s productivity and prosperity for the future.”

Looking to promote your product/service to SME businesses in your region? Find out how Bdaily can help →