MANUFACTURERS in Yorkshire are returning to local production due to issues around quality, cost and delivery.

One in five respondents to the Manufacturing Advisory Service’s latest barometer stated concerns over lead times and reliability were the principal reasons for re-shoring, followed by reducing costs (17 per cent) and improving quality (16 per cent).

However, the cost of domestic labour continues to remain the biggest barrier for producing within the UK according to manufacturing SMEs, with well over one in ten also concerned about the availability of the right skills.

The Barometer, which featured the views of more than 60 manufacturing SMEs from across Yorkshire and Humber, reinforced the recent feel good factor, with nearly two thirds (65 per cent) reporting an increase in sales over the last six months, a three per cent rise on the previous quarter.

A total of 78 per cent of firms are expecting to grow between now and April 2014, while 97 per cent are planning to take on new staff or keep the size of their workforce the same.