RESHORING IN THE UK, DRIVERS AND CHALLENGES

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...

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Main Author: Terán Vargas, Sergio
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2014
Online Access:https://eprints.nottingham.ac.uk/27590/
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author Terán Vargas, Sergio
author_facet Terán Vargas, Sergio
author_sort Terán Vargas, Sergio
building Nottingham Research Data Repository
collection Online Access
description 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.
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spelling nottingham-275902017-10-19T14:02:57Z https://eprints.nottingham.ac.uk/27590/ RESHORING IN THE UK, DRIVERS AND CHALLENGES Terán Vargas, Sergio 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. 2014-12-11 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/27590/1/S-Teran-Vargas_13-14.pdf Terán Vargas, Sergio (2014) RESHORING IN THE UK, DRIVERS AND CHALLENGES. [Dissertation (University of Nottingham only)] (Unpublished)
spellingShingle Terán Vargas, Sergio
RESHORING IN THE UK, DRIVERS AND CHALLENGES
title RESHORING IN THE UK, DRIVERS AND CHALLENGES
title_full RESHORING IN THE UK, DRIVERS AND CHALLENGES
title_fullStr RESHORING IN THE UK, DRIVERS AND CHALLENGES
title_full_unstemmed RESHORING IN THE UK, DRIVERS AND CHALLENGES
title_short RESHORING IN THE UK, DRIVERS AND CHALLENGES
title_sort reshoring in the uk, drivers and challenges
url https://eprints.nottingham.ac.uk/27590/