RESHORING IN THE UK, DRIVERS AND CHALLENGES

Terán Vargas, Sergio (2014) RESHORING IN THE UK, DRIVERS AND CHALLENGES. [Dissertation (University of Nottingham only)] (Unpublished)

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Abstract

Reshoring is not a new phenomenon, but it has become popular in recent years due to the

support of governments in developed economies, which support it with the aim of achieving a

healthy balance between manufacturing and service operations. The paper begins by

analysing the essential aspects of the concept and identify the different modes in which can

take place. Consequently the main drivers and challenges are addressed with special focus

on the UK conditions, and it is found that quality is the main driver of the trend, followed by

an increased need of responsiveness and flexibility, reduction of supply risk, increased

logistics costs, language and cultural differences, intellectual property theft, currency

exchange differences and increased labour costs in developed countries, among others. In

regards to the challenges affecting the UK, high labour costs, skilled labour deficiency, high

switching and energy costs were found the most important.

Likewise, it was found that many of the UK drivers are common among other economies

(US, Germany, etc.), differing only in the relative importance given to each one of them,

however the challenges contrast between the realities of each economy, implying that is

necessary to adopt targeted reshoring strategies. Four hypotheses were proposed based on

the findings throughout this research and complemented with a framework to assist UK

companies in selecting the best reshoring strategy based on the nature of their activities. The

results suggest there is a broad scope of activities to reshore to Britain, but a special focus

should be given to value-driven and labour intensive activities with scope for automation and

value-driven and capital-intensive activities.

Item Type: Dissertation (University of Nottingham only)
Depositing User: EP, Services
Date Deposited: 12 Nov 2014 10:13
Last Modified: 26 Oct 2016 10:28
URI: http://eprints.nottingham.ac.uk/id/eprint/27590

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