Whitehall set to strengthen UK supply chains

He said: "Every successful company is only as good as its supply chain. The last four decades have seen the UK's manufacturing base increasingly forced to compete with low-cost economies for investment, jobs and growth. Some businesses have struggled and it has resulted in a hollowing out of the UK's domestic supply chains with over half the supplies used in British manufacturing coming from overseas. "This cannot go on. That's why I'm acting now so we can get off this merry-go-round where every time a manufacturer shifts production overseas, the local companies that support them begin to disappear too." He added: "These supply industries are huge, important sectors in their own right – our steel makers, petrochemical companies, glass producers all the way down to car seats manufacturers – all of which employ thousands of people and generate millions for our economy but they need our support." The plan, to be published in the New Year, will be designed to encourage and support UK manufacturers to work together with British companies to produce the parts they need, rather than relying on overseas manufacturers. A government statement said: "For example, while the UK automotive sector is one of our biggest manufacturing success stories, UK vehicle makers still import more than £11 billion worth of components annually, sourcing around 40% of their parts from domestic suppliers, compared to over 60% in Germany and France." It added: "We now need to ensure we focus our attention on those supply chains that are the foundation of our manufacturing base. These are vital for all end manufacturers – whether its manufacturers of steel for car production, wings and control systems for planes. These industries rely day in day out on the parts they use – from the tiniest of nuts and bolts, to gearboxes and car seats and to vast wind turbines."