More than 40,000 jobs could be created in the North West as it becomes the top region to benefit from companies “reshoring” back to the UK, say experts.
Many major companies have shifted their production to lower cost countries.
But now there are signs that some businesses are re-locating production to the UK - known as “reshoring”.
A report by professional services firm EY said reshoring could contribute £2.4bn in GDP and 46,200 jobs to the North West economy over the next 10 years.
Babs Murphy, chief Executive of the North & Western Lancashire Chamber of Commerce said today: “As well as boosting employment and GDP, reshoring will help the North West to balance its economy where consumers, manufacturers, service businesses and other sectors are pulling in the same direction.
“It is vital however that the Government and industry should work together to deliver the right framework so that the advantages of moving production to the North West is realised quickly.”
The region came out top of the list of 11 UK regions analysed in terms of GDP that could be added by reshoring. It was closely followed by the South East (excluding London) (£2.0bn GDP, 35,500 jobs), the West Midlands (£1.8bn GDP, 35,000), and Yorkshire and Humber (£1.7bn GDP, 37,900 jobs). The North West was also identified as the region where the most jobs could be created via reshoring.
Simon Allport, North West Senior Partner at EY, said: “These results are hugely encouraging for the North West region, which has significant potential to attract reshored activity over the coming years. This is thanks in part to our connectivity to the UK and the world via our international airport, and national road and rail links; a developed, globally integrated business services community, and our skilled labour markets. 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.”