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Jones Lang LaSalle comments on today’s on-shoring announcement from Prime Minister, David Cameron

London, 24th January 2014 – Commenting on Prime Minister, David Cameron’s announcement at Davos today on re-shoring to the UK, Alex Ash, Director, Business & Location Consulting, Jones Lang LaSalle, said: “Mr. Cameron’s view on re-shoring back to the UK is increasingly borne out by the data.  A growing number of UK companies are considering bringing manufacturing and contact centres back onshore. Offshore locations have witnessed escalating labour costs and currency appreciation; both have eroded the cost arbitrage previously found through offshoring facilities. For this trend to gain momentum, the availability of appropriately skilled labour will be essential.”

Alex Ash, continues: “Advanced manufacturing and R&D clusters continue to grow around university towns, while Contact Centres gravitate to low cost UK locations such as Belfast and Glasgow; local government incentives play an important role here. The UK’s competitive business climate is also driving growth in the number of companies choosing the UK for their corporate headquarters.”

Alex Ash, concludes: “Smart companies are striking a balance with their shoring strategies, combining on-shore, near-shore and off-shore functions. The key to success is a robust analysis of the what, where and how of the shoring process with a focus on optimising configuration and driving productivity.”