Business clinic: production abroad isn’t my bag, but can I keep being made in Britain?

I am passionate about supporting British manufacturing and the quality and ease of domestic production is fantastic. However, as sales start to increase, I’m concerned that there won’t be enough factories here to meet our demand. Most of the best British factories that we are, or could be, using are already stretched.

I don’t want to have to move any production abroad if I can help it; I don’t want to be one of those British brands that, when you scratch beneath the surface, you find isn’t particularly British at all.

What would you recommend I do now, to ensure that I am able to continue making in Britain when demand starts to grow?

Expert one Simon Duffy is co-founder of Bulldog, which makes men’s cosmetics. Its products are in thousands of UK outlets and it exports to 14 markets.

A Anticipating potential challenges early and dealing with them before they become real problems is a crucial skill for all growing businesses. Now is the time to plan ahead and there are a few things to get started on straight away.

Focus first on your relationships with your two manufacturers. Share your concerns and outline clearly how quickly you think your business may grow. Work together to identify where constraints could emerge; is it down to machinery, access to skilled labour or to raw materials? You may be surprised at how much hidden capacity your present partners have.

You should also start to identify other viable British manufacturers as soon as possible. Visit new sites, spend time with their people.

You should look for expert advice in areas where you feel you may need additional help. Is there a relevant trade association for this industry? Can you reach out to contacts from similar companies for help?

Hiring someone with deep industry experience could open up a new network of manufacturing options and lead to greater efficiency in production. It will also allow you to concentrate on what you do best in the business.

Expert two Tony Caldeira is chief executive of Caldeira, a textile business. It has been moving much manufacturing back to the UK to improve quality and create local jobs.

A As an entrepreneur who has factories in the UK and China, I strongly recommend that you keep your production in Britain; the “Made in Britain” label is one of your brand’s unique selling points and production and quality control are easier to monitor when products are made locally.

The main risk you have in not going overseas is extra cost, making your product uncompetitive. However, as your product is niche, high value and low volume, the cost advantages are not necessarily as important as they would be with mass-produced handbags.

Since 2008, the prices of Chinese goods have been rising much more quickly than the prices of UK-made goods so, even on cost, the tide has turned and British manufacturing is much more competitive.

Look for more British manufacturers now. If you rely on one supplier, they could control your business. Where there is enough demand, suppliers will increase their capacity, but only if you give them enough notice. Once your brand is established and, if demand continues to rise, you may need your own factory but at this early stage, take things one step at a time.

Expert three: Alison Phillips is business growth manager at the Business Growth Service, the government’s advice and support scheme for ambitious companies:

A The fact that you have already found two British companies to make your handbags to the quality you demand is really good news and this should be your starting point.

Now you must ask, are you looking to sell thousands of your bags, or do you want to retain a certain exclusivity?

Work with existing suppliers on completing forward planning around your predicted production levels and explore ways that output can be scaled up as and when required.

Most manufacturers – if the working relationship is right – will be eager to work with a growing customer, as it represents an increase in turnover and future stability.

Your conversations could involve examining how both parties can work smarter in order to increase capacity. While traditional craftsmanship is important to you and your brand, there could still be elements of the process that can be automated or semi-automated to increase volumes.

Also agree ‘first-off’ samples for all new products that are introduced. If the manufacturer is worried about achieving a particular look, listen to why they think they can’t produce it in volume. Explore if there is an alternative solution that allows the handbag to have the same feel.

If you do outgrow your two initial suppliers there are certainly other UK sub-contract manufacturing specialists that can make leather products.

This is where the Business Growth Service’s manufacturing support, delivered through the Manufacturing Advisory Service (MAS), can make a difference. This service can save valuable time and investment in helping companies pinpoint possible suppliers from a database of companies we regularly work with.

In some cases, we have managed the introductions and assisted with setting up manufacturing processes and systems.

Finally, the trend for companies to “reshore” production back to the UK shows domestic manufacturing is a sound business strategy which gives you greater control of your supply chain, reduces lead times, offers better quality and often even delivers a lower price for customers.”