Sustainable Brands: Natural Disasters, Recession Push Manufacturing Back In-House

August 15, 2012—Increasing numbers of manufacturers are bringing production back in-house and expanding local supply capability in response to increased disruptions to supply chains caused by natural disasters, climate change and recession, according to a surveyreleased this week by EEF, a U.K.-based manufacturers’ organization.

The globalized nature of manufacturing and supply chains increases the potential for disruptions to cause business continuity risks, and the survey shows companies are now very alive to future threats, with one-third of companies viewing it as an issue of Board-level attention.

As a result of economic events and natural disasters in recent years that have had tangible impacts on revenue, orders and meeting customer requirements, companies are reviewing their value chain and supplier strategies. This has led to two-fifths of companies bringing production back in-house, while a quarter have increased their use of local suppliers.

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