According to a new research, the UK’s electrification charge suggests a significant reshoring potential.
According to a recent analysis, the UK’s quest to become a global leader in electrification will present a significant opportunity for bringing production back home.
According to the ‘In Charge’ survey of European battery industry executives conducted by digital manufacturing specialist Protolabs, 84 percent of UK companies want to relocate elements of their supply chain closer to their manufacturing base in the coming year. Following the economic worldwide disruption caused by the epidemic, there has never been a greater demand to localize supply chains, with companies trying to boost supply security and speed to market while lowering their carbon footprint.
The majority of UK respondents want to outsource component production to specialised manufacturers, and 86% want to launch a new battery product or storage system in the next year.
The findings coincide with Nissan’s ambitions to develop the UK’s first car battery gigafactory, which may result in billions of dollars in new business for local suppliers and thousands of new employment.
“We are still largely reliant on battery cell imports with only 6% of battery production taking place in Europe, and with demand for electric vehicles fast increasing, there is an understanding this has to change,” says Bjoern Klaas, managing director of Protolabs Europe.
“The UK’s desire to be at the vanguard of the electrification race is clear, but the commitment to build stronger domestic supply chains that can support battery development and manufacture is becoming increasingly pleasing.”
In addition to the growing tendency of reshoring, respondents to the Protolabs study cited sustainability as the UK’s primary differentiator in competing with battery development and manufacturing in the Far East and other international territories.
Sixty-eight percent of CEOs believe that improving their environmental capabilities will give their companies a competitive advantage, which will be critical for attracting inbound investment.
“Sustainability means the entire value chain… raw materials, supply chain, production, and recycling will all have to meet strict environmental, social, and corporate governance (ESG) criteria,” Klass continued.
“When compared to other countries, the UK is well positioned to do this, but there is still work to be done.”
Concerns about the source of responsible raw materials and the use of renewable energy in manufacturing remain.
“Our findings also contain some warning indicators for the government to consider,” Klass said. “First and foremost, more than half of executives believe they are.” Brinkwire Summary News”.