CMG Technologies is celebrating re-establishing its successful partnership with a major industrial product manufacturer – who in reshoring the production of complex components to the metal injection moulding specialist, has welcomed a significant cost saving, whilst providing a boost for the UK economy.
A survey by Make It Britain has revealed that one in six manufacturers are in fact considering reshoring all or part of their production to the UK, with a recent report from The Telegraph confirming that reshoring could actually boost the UK economy by an impressive £15bn, creating 315,000 jobs, by 2025 – thus making CMG Technologies an industry leader for this growing trend.
Reasons for the growth in reshoring are issues experienced overseas with quality and delivery times, together with difficulty in finding suitably qualified staff. In addition to overcoming these problems, moving manufacturing production to the UK can also save money through eligible tax breaks.
CMG’s partner first moved its manufacturing plant to China four years ago but soon found that after taking into account costs of shipping, duties and quality issues, little money was being saved in the long-term and, in fact, so many hidden costs were involved that it made financial sense to move back to the UK.
Knowing of CMG Technologies’ established, innovative and popular Metal Injection Moulding (MIM) process, the firm decided to reshore and has experienced a number of cost-saving benefits as a result.
CMG’s managing director, Rachel Garrett, confirms, “Most UK-based manufacturers are familiar with outsourcing the production of some of their more complex components to MIM companies based overseas, thanks to the cost efficiencies that can be achieved. However, many remain unaware that this service can, in fact, be accessed in the UK for around the same, if not lower, costs – with the added bonus of a much higher production standard and finished result.”
MIM also results in significantly lower scrappage volumes than traditional machining methods and greatly reduces shipping costs, offering a cost effective way of manufacturing complex components that may otherwise prove extremely expensive.
Rachel added: “Working with UK suppliers also means communication can be far easier, lead times can be shortened and the reduction in shipping, as well as the MIM process itself which is a recognised ‘green technology’, means the carbon footprint from the production process can be substantially reduced, cutting energy costs for manufacturers.
“Add all of this to the fact that manufacturing is one of the main contributors to the UK’s economy by creating and safeguarding jobs, it’s easy to see why reshoring offers such huge potential and why we continue to grow,” she added.
CMG Technologies is the UK’s largest MIM specialist and has more than 25 years’ experience of MIM manufacturing. The company’s strategy of keeping the whole process in-house means it can tightly control all aspects of production, consistently ensuring that the highest levels of quality are maintained.
For further details about how CMG can help your firm to reshore please contact Rachel Garrett by email or by calling 01394 445124.