A snapshot of major companies across the EU has found that the trend for placing operations abroad is waning
Almost a quarter of European companies plan to repatriate their foreign operations in the next three years to benefit from the single market and more secure supply lines, according to a survey by the CBI.
The figure could climb to almost two thirds if Brussels simplified regulations that businesses claim restrict trade and damage corporate profits.
Britain's leading business lobby said a snapshot of major companies across the EU, between them employing more than 1 million workers, found the trend for placing operations abroad was waning and senior managers favoured bringing factories and call centres back to Europe.
While 62% have no plans to switch back to Europe, 60% said that reform measures implemented by Brussels "would be the key factor leading to them reshoring parts of their business".
With little more than a month to go before the EU elections, the CBI is concerned that vociferous anti-EU rhetoric will increase support for Britain going it alone outside the single market. CBI director general John Cridland heads a long list of business leaders keen to rebut arguments put forward by the UK Independence Party that Brussels is beyond reform and a barrier to growth.
A reluctance in François Hollande's administration in Paris to address subsidies and regulations dating back decades has stymied reform efforts. British business leaders concede in private that a referendum on EU membership planned for 2017 in the event of a Tory general election win could be lost unless Brussels agrees to simplify regulations and make the labour market more flexible.
The survey of firms in Britain, Germany, France, Italy and the Netherlands follows the CBI's analysis of manufacturing orders that highlighted the challenge facing George Osborne as he seeks to improve Britain's recent poor trade record. The figures show that, while order books for manufacturers are growing, companies are relying on strong domestic demand.
With a rising pound making UK goods more expensive overseas, only 18% of firms reported export order books above normal for the time of year while 27% said they were below normal.
The rounded balance of -10 percentage points in February compares with -1 point in January and is feeding through into lower production in factories.
More than a third of firms (36%) said output rose over the past three months against 21% recording a fall. The CBI said that while growth remained strong it was the slowest in five months and a further easing is expected over the next quarter.
Anna Leach, the CBI's head of economic analysis, said: "The picture in the manufacturing sector remains positive. Overall, demand continues to rise and output growth is robust. Growth in exports is crucial to rebalancing the economy and ensuring a sustainable recovery.
"Over the last few surveys, manufacturing export orders have underperformed relative to overall orders as the UK's domestic recovery has caught hold more quickly than some of our key trading partners – most particularly, the eurozone.
"Measures announced in the budget should help businesses to break into new, faster growing markets and underpin an improvement in the UK's export performance."
The CBI said that of those companies that had reshored, 54% cited the importance of having access to the European single market. Almost three quarters said "better quality within their home market" was a critical factor.
Katja Hall, CBI chief policy director, said: "There is a real appetite across the continent to reform the EU and bring more jobs back to Europe. Some companies are already making waves on this front, but it's clear much more must be done by politicians for firms to accelerate the trend for reshoring." Reported by guardian.co.uk 3 hours ago.
Almost a quarter of European companies plan to repatriate their foreign operations in the next three years to benefit from the single market and more secure supply lines, according to a survey by the CBI.
The figure could climb to almost two thirds if Brussels simplified regulations that businesses claim restrict trade and damage corporate profits.
Britain's leading business lobby said a snapshot of major companies across the EU, between them employing more than 1 million workers, found the trend for placing operations abroad was waning and senior managers favoured bringing factories and call centres back to Europe.
While 62% have no plans to switch back to Europe, 60% said that reform measures implemented by Brussels "would be the key factor leading to them reshoring parts of their business".
With little more than a month to go before the EU elections, the CBI is concerned that vociferous anti-EU rhetoric will increase support for Britain going it alone outside the single market. CBI director general John Cridland heads a long list of business leaders keen to rebut arguments put forward by the UK Independence Party that Brussels is beyond reform and a barrier to growth.
A reluctance in François Hollande's administration in Paris to address subsidies and regulations dating back decades has stymied reform efforts. British business leaders concede in private that a referendum on EU membership planned for 2017 in the event of a Tory general election win could be lost unless Brussels agrees to simplify regulations and make the labour market more flexible.
The survey of firms in Britain, Germany, France, Italy and the Netherlands follows the CBI's analysis of manufacturing orders that highlighted the challenge facing George Osborne as he seeks to improve Britain's recent poor trade record. The figures show that, while order books for manufacturers are growing, companies are relying on strong domestic demand.
With a rising pound making UK goods more expensive overseas, only 18% of firms reported export order books above normal for the time of year while 27% said they were below normal.
The rounded balance of -10 percentage points in February compares with -1 point in January and is feeding through into lower production in factories.
More than a third of firms (36%) said output rose over the past three months against 21% recording a fall. The CBI said that while growth remained strong it was the slowest in five months and a further easing is expected over the next quarter.
Anna Leach, the CBI's head of economic analysis, said: "The picture in the manufacturing sector remains positive. Overall, demand continues to rise and output growth is robust. Growth in exports is crucial to rebalancing the economy and ensuring a sustainable recovery.
"Over the last few surveys, manufacturing export orders have underperformed relative to overall orders as the UK's domestic recovery has caught hold more quickly than some of our key trading partners – most particularly, the eurozone.
"Measures announced in the budget should help businesses to break into new, faster growing markets and underpin an improvement in the UK's export performance."
The CBI said that of those companies that had reshored, 54% cited the importance of having access to the European single market. Almost three quarters said "better quality within their home market" was a critical factor.
Katja Hall, CBI chief policy director, said: "There is a real appetite across the continent to reform the EU and bring more jobs back to Europe. Some companies are already making waves on this front, but it's clear much more must be done by politicians for firms to accelerate the trend for reshoring." Reported by guardian.co.uk 3 hours ago.