President Macron is relocalising: reshoring the production of pharmaceuticals

Several references have been made on this site about the growing awareness of the need to develop strong British supply chains which will reduce the high carbon dioxide emissions caused by transporting goods made in other countries.

Reshoring (aka onshoring, inshoring, or backshoring) is the process of returning the production and manufacturing of goods back to the company’s original country.

It is the opposite of offshoring, the process of manufacturing goods overseas to try to reduce the cost of labour and manufacturing. Some readers may enjoy reading about the downside of offshoring, described in detail by Bryan Luoma.

Twenty two leading industrial engineering associations in the Reshoring UK initiative, aim to connect manufacturers with trusted suppliers capable of delivering UK-based products and services.

The reshoring trend has been explored and publicised by Professor David Bailey since 2013; he reported in the Birmingham Post (archived to Birmingham Live) that “repatriating activity – including some sourcing – to the UK is very much on the agenda”. In 2018, Bailey and Lisa De Propris suggested that the advantages include the skilled jobs created which have a multiplier effect, stimulating demand and – in turn – leading to additional employment opportunities.

Many journalists and NGOs have focussed on food security and the Farmers Weekly reports the incorporation of three measures to encourage this in the Agriculture Bill

https://www.nfuonline.com/news/latest-news/expert-insight-the-agriculture-bill-2020/

Today the French President, Emmanuel Macron, adds another important advantage – that of security

The Covid-19 pandemic has alerted the French president to the need for France to invest in reshoring, to produce more medical equipment and pharmaceuticals within its borders and to finance a ’much-needed’ initiative to repatriate the production of critical medicines.

Critics said the pandemic exposed the weakness of France’s healthcare system after masks, tests and drugs ran short, leaving it with far more deaths than neighbouring Germany. “Everyone saw during this crisis that certain drugs were no longer manufactured in France or even in Europe”.

Mr Macron said in a speech at Sanofi. “We must draw lessons from that. . . and the state is ready to invest in such reshoring projects.”

Macron unveils a much-needed initiative to bring home production of critical medicines during a visit to Sanofi, a French pharmaceutical MNC 

in June France issued a call for companies to indicate interest in bringing back production of 30 generic drugs used to fight Covid-19, including medicines used for patients on ventilators, painkillers such as fentanyl and morphine and antibiotics.

Production will start with the country’s top-selling medicine, paracetamol – though Big Pharma opposes this, pointing out that it can be produced more cheaply in Asia. Mr Macron said that France is aiming to reshore production within three years.

 

 

 

.

GMB: developing strong British supply chains will be socially, environmentally and economically beneficial

 

Localise West Midlandsformer chairman George Morran has focussed on the UK’s dependency on the manufacture of arms, while at the same time being forced to import trains, trams and other manufactured goods from abroad. He asked: “Would it not be possible – with the level of Government support currently given to BAE and its supply chain – to fill some of these more local needs?”

In similar vein, Jude Brimble (below right), the GMB’s national secretary for manufacturing,* urges support for the manufacturing sector.

She criticises successive governments for the lack of investment and the tendering processes that hamper home-grown businesses adding, “Whoever wins the next election must develop a procurement strategy supporting UK industry, build strong British supply chains and a balanced energy policy to keep our country’s lights on”.

In November a particular case was cited. New ships are to be built for the Royal Fleet Auxiliary, a civilian-manned fleet owned by the MoD to support the Royal Navy by supplying fuel, ammunition and supplies, normally at sea and transporting soldiers and Royal Marines.

Jude said: “The Royal Fleet Auxiliary contracts are the key to unlocking the country’s massive shipbuilding potential”, pointing out that ministers are giving away this key by allowing overseas companies to bid on major contracts.

She added: “Against the backdrop of Brexit, the government should be fighting for the defence and growth of as much decent work as possible, not hiving off huge skilled manufacturing opportunities to international competitors for the lowest cost possible.

The decision comes despite the recommendations of the Parker Report, which informed the National Shipbuilding Strategy unveiled by then defence secretary Michael Fallon two months ago, and the views of Sir John Parker (below) aiming for a “renaissance” in the sector:

Campaign leaflet: THE MAKING IT CHARTER

We call on all governments of the UK to: ​

  • Invest in manufacturing – and create an environment that encourages manufacturing employers to invest.
  • Buy for Britain – we need a procurement strategy that supports UK industries and supported employment.
  • Negotiate trade deals that deliver for workers and industry, avoiding damaging tariffs on British goods.
  • Build strong UK-based supply chains to support local communities.
  • Support equality and inclusion by tackling barriers to work wherever they exist.
  • Invest in skills, research and development, and the technologies of tomorrow.
  • Pursue a balanced energy policy that provides sustainability and security for the UK and our nation’s industries.

And, it should be added, the development of strong British supply chains will reduce the high carbon dioxide emissions caused by transporting  imports.

*Jude, a former Community Mental Health Practitioner, has been involved in school workforce re-organisation, local government reform and Skills for Security since joining the GMB staff.

 

 

 

 

o