Updated on Thursday 27 May 2021, 9:27 AM

3 Minute Read

In a time where all companies are looking to reduce their carbon footprint there has never been a better time to localise your supply chain.

Companies should not be afraid of reshoring production as in most cases the injection moulding tools can be brought to the UK meaning there is minimal capital spend.

The top reasons for companies to RESHORE include:

Shorter Lead Time – Customers are consistently chasing shorter lead times and the ability modify the production process to their needs. Establishing manufacturing closer to the customer shortens lead times and facilitates a more collaborative working relationship with suppliers.

Lower Stock Levels – Lots can go wrong when a supplier is at the other side of the World, which often results with you holding higher stock levels. By manufacturing close to your site you minimise unforeseen disruptions to the supply chain. When placing work over-seas who thinks of extreme weather, out of specification product, shipping times, air-freight costs for urgent deliveries, customs issues or transportation problems. Lower inventory levels significantly improve your cash flow.

Import Duty – No import duty is applied to mouldings and sub-assemblies made in the UK, very important in uncertain times.

Cost Reduction – The global marketplace is not as competitive as it once was. The rising cost of labour and the devaluation of the Pound have significantly increased overall costs. All business reshored to The Protool Plastics Group in 2019 returned an overall cost saving to our customers.

Quality & Consistency – The Protool Plastics Group has an excellent record for quality and on time delivery. All sites are accredited to ISO9001 – 2015

Overall Cost of Ownership – Overseas workers have seen significant wage increases and this will continue at an increased pace. Often the low product cost was based on cheap labour and as such prices are rising fast while overseas suppliers transition to higher levels of automation. In addition the true cost of production goes beyond the selling price with increased overhead costs to ensure batch to batch quality.

Skilled Workforce – A skilled workforce is instrumental to high quality and all of our staff are highly trained with toolmakers and injection moulding technicians all having completed traditional apprenticeships.

Made in the UK – As we leave the EU more and more focus will be put on items made in the UK as the country looks to improve the balance of trade. In addition Made in Britain is synonymous with high quality and local production will give significant supply chain improvements.

Intellectual Risk – The UK is a world leader in innovation and is a secure environment for the sharing of intellectual property, with little and trademark infringement. Intellectual property rights are heavily defended by UK law.

Recent years has seen companies looking at the total cost of ownership on products made in low cost countries. Offshoring decisions are often based solely on price, resulting in a 25% to 35% percent under costing of the actual cost to the business.

Contact us now to discuss your requirements.

Michael Hadfield.

Group Managing Director.

The Protool Plastics Group.

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