As a manufacturing business broker, A2Z Business Brokers works with manufacturing businesses and investors throughout the country to support the manufacturing sector.
Manufacturing accounts for about 15% of the UK economy and is set to grow in coming years as the coalition government works on its commitment to increase onshore manufacturing and reduce the trade deficit.
Recent research from the Manufacturing Advisory Service’s (MAS) has shown that UK businesses are keen to bring manufacturing back home. A process now being known as reshoring.
In a survey of SME (Small and Medium Enterprise) businesses, MAS found that over 25% of respondents said that higher costs associated with overseas production was the main reason for their reshoring initiative. This is perhaps a little surprising in the world we have become used to living in over the last 20 years.
Of course China, in particular, has an economy that has recently grown so much and become so wealthy in that time period that it does make sense that there is now real upward wage pressure.
UK manufacturing for a change has a fair wind behind it and a level of government support not seen since the mid 1990’s. For those looking to invest there are great opportunities to invest in, or buy, a manufacturing business at a time when a good return looks much more likely.
For manufacturing business owners looking to sell, then again this is a good time as it will be much easier to obtain the full market price they think the business is worth, while the buyer will still have a prospect of a good returm
For investors too, there are some other very positive signs in the MAS survey. Intriguingly, the survey also revealed that 20% of the business surveyed cited improving quality as the main driver for reshoring and another 18% were looking to reduce lead times.
There are some clear opportunities here for investors to push manufacturing businesses on and take advantage of the potential, cost quality and delivery opportunities that reshoring offers.
Manufacturing is coming home and A2Z Business Brokers is here to help with our manufacturing business brokerage service. Why not get in touch to see how we can help you sell, buy or invest in a manufacturing business.