TechNation’s 2021 report into the state of the industry provides valuable insights as to why UK tech is performing so strongly. It shows that the UK’s tech venture capital investment is third in the world – behind only the United States and China – having hit a record high of $15bn in 2020. The report also found that the UK is more attractive to international investors than ever before, with 63% of tech investment having come from overseas in 2020 – up from 50% in 2016.

At IoT Solutions Group, we are hugely proud of the fact that all our products are designed, manufactured and refurbished in the UK, and strongly believe that this has been a vital part of the success we have achieved to date.

As the country’s tech sector continues to thrive and outpace much of the rest of the world, UK-based tech companies should consider the benefits that onshoring all of their manufacturing could bring, not only for their organisation, but also for our economy as a whole.

Building better, closer relationships with manufacturers

Building a strong working relationship with your manufacturer is key to establishing seamless and efficient manufacturing operations.

By working with manufacturers that are based overseas, it is considerably harder to meet with them face-to-face on a regular basis, especially in light of the pandemic, which continues to create significant challenges and uncertainty around international travel.

Having the ability to hold frequent, in-person meetings, however, can make a huge difference when it comes to brainstorming ideas or clearly communicating instructions. It can also be a prime opportunity to show the manufacturer the type of product that you want them to make, and they can show you other things they may have made p.reviously that are similar.

With greater, more frequent and collaborative communications comes a greater level of control over the manufacturing process. It is far easier to check on progress and quality control, as well as work through any setbacks together, when the factory is within easy reach.

Furthermore, if your clients request changes to certain aspects of the product, these can be more easily made when your manufacturers are nearby, meaning customers won’t have to wait as long and are therefore more likely to be satisfied with the service they receive.

Creating jobs domestically

It stands to reason that, as the amount of products that are made in the UK grows, the number of people required to make them will too.

This provides a considerable boon for domestic employment through the creation of new jobs and opportunities for those looking to pursue a career in tech.

As UK manufacturing becomes stronger, the level of job security for those working in the industry is strengthened also, which is likely to draw even more talented individuals to the sector.

The creation of jobs through the expansion of home-based manufacturing will also give the economy an extra boost, which means greater profitability for firms, and increased spending on research and development that could lead to further technological breakthroughs.

Furthermore, it helps to bolster the UK’s position as a major player in the global tech market, which is likely to attract an even larger number of international investors and businesses eager to make Great Britain their new base of operations.

Helping to protect the environment

The future of the environment is a key issue that the world is currently facing, and companies that can demonstrate their commitment to being more eco-friendly are likely to receive praise for their efforts.

By onshoring their manufacturing operations, UK tech companies can play their part in helping to protect the planet. Not only will this reduce the amount of travel you make to visit an overseas manufacturer, but also the international shipping of samples and goods, all of which will significantly improves the carbon footprint of your product.

What’s more, some of the largest manufacturing countries are well known for their environmentally harmful and unsustainable practices. For example, recently published research by Rhodium Group found that China emitted more greenhouse gases than the entire developed world combined in 2019.

While nations such as China may be popular locations for outsourcing manufacturing to, given their abundant resources, relatively low costs, and trained, experienced workers, UK tech companies should consider the positive PR that committing to a more sustainable manufacturing process could bring them.

What’s more, by onshoring all their manufacturing, firms are directly investing in the UK’s economy, which will ultimately be more beneficial for them and the sector as a whole than investing in other, competing nations.

Take pride in Britain

The UK has a long and proud history of being a world leader when it comes to quality design and manufacturing, but its manufacturing industry has, in recent times, been undercut by the cheap labour costs of other, developing countries like China and Taiwan.

As UK enterprises, tech companies should take pride in being based in Britain, and part of this is enjoying the sense of pride that all of your products are made on our shores.

Given the aforementioned ‘renaissance period’ that UK tech is experiencing, customers both here and overseas will likely know and appreciate the value that comes with British-made brands.

Further to this, those businesses that onshore manufacturing are helping to reinforce the country’s manufacturing sector, and in doing so will help to solidify Britain’s position as a great nation of makers once again.