The Covid-19 pandemic has changed many elements of both our personal lives and business. It has also made companies in certain industries realise that their supply chains aren’t as secure as they might like.
An article for Net Times Magazine recently suggested that businesses in the North East of England could be set to benefit from an onshoring of the UK’s chemicals industry.
It revealed that the UK’s chemicals, as well as its pharmaceutical, industries are exploring bringing production back to the country as a result of the uncertainty surrounding international trade that’s been caused not only by Brexit, but also the Covid-19 pandemic.
OCO Global told the publication that the pandemic has highlighted supply chain risks within the chemicals sector, and as around 50 per cent of the country’s chemical production already takes place in the North East, this region could benefit if production is scaled up.
Commercial director at OCO Global Gareth Hagan said that both the pharmaceutical and chemical sectors are “vulnerable to supply chain shocks”.
“Internalising supply chains will be crucial to ensuring the UK remains globally competitive within these sectors post-Brexit and the shift to onshoring is set to be a key driver of future economic growth and jobs in the North East,” he stated.
According to the Chemicals Industry Association (CIA), the chemical and pharmaceutical industry is one of the largest manufacturing exporters in the UK. It’s estimated that it adds £17 billion of value to the country’s economy each year.
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