Reshoring could bring 200,000 jobs back to UK

"This scale of reshoring could boost the level of UK GDP by around 0.4-0.8% by the mid-2020s, which equates to around £6-12 billion at today's values (relative to a baseline where no such reshoring occurs)," the consultant said. The trend to reshore reflects a range of recent developments that are expected to continue in future. These include: a desire to locate closer to consumers with fast-shifting preferences; a reduction of the wage gap with emerging economies such as China; volatile international transport costs; and a desire by UK managers to better control quality, inventory levels and supply chain risks. The report argues that businesses need to take a fresh look at their location decisions in the light of these trends. John Hawksworth, chief economist at PwC, said: "This trend to reshore is still at a very early stage, but our analysis suggests that the impact on jobs and output could build up gradually to material levels over the next decade or so. Of course, some jobs will also still be offshored over this period, but it should be much more of a two way street going forward." He added: "While the manufacturing industry will benefit, reshoring is also expected to have an impact on internationally mobile services activities. We estimate, for example, that it could create up to 20,000 jobs over the next decade in the areas of research and development, business support services and telecommunications." He said policymakers could support the reshoring trend by encouraging the formation of centres of excellence, upgrading infrastructure to provide more efficient transport services, working with employers to boost skills, and maintaining an internationally competitive tax regime in the UK.