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Manufacturers 'returning to UK'

30th December 2009

Manufacturers which moved production abroad are starting to return to Britain, according to new research.

A report from manufacturing organisation EEF and accountancy firm BDO revealed that 14 per cent of companies have shifted their operations from overseas locations to the UK.

The study claimed that higher freight prices and worries about the quality of goods have prompted the decision.

In addition, 70 per cent of the 300 manufacturers surveyed consider the UK to be a competitive location for business, growing from just 43 per cent who agreed with this sentiment two years ago.

Lee Hopley, chief economist with the EEF, told the BBC: 'If you look at how UK manufacturers compete in global markets, it's about quality, it's about customer service and it's about delivery times.'

He also suggested that attracting manufacturing businesses back to the country is essential for economic recovery, as they will allow export-driven growth when worldwide trade begins to pick up.

Earlier this month, the EEF claimed that the worst of the downturn is behind the manufacturing sector but warned that 2010 may not bring a strong economic rebound.

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