John Smedley reopens for third-party manufacturing after 40-year hiatus

Heritage knitwear specialist John Smedley is betting on UK manufacturing being able to make a comeback in a much-changed world and is investing millions in making its factory in England available for third-party manufacturing for the first time in four decades.

The globally-stocked brand said it has seen growing demand for manufacturing services and has earmarked a £4.5 million investment in making it happen.

Fellow British brand Daks has signed up for a 12-piece collaborative knitwear collection in a reversal of an offshoring process it started in 2000.

The UK fashion sector has seen a steady offshoring process since the 1980s as production moved to parts of the world where labour was cheaper and more skilled, with faster turnaround times.

But the FT, which reported the John Smedley move, cited a 2024 executive survey conducted by PwC in association with Make UK that found more than half of 200 senior execs now view Britain as a more competitive location for manufacturing. That was up from 31% in the previous year.

Maclean told the financial newspaper that the advantages of offshore locations have diminished. “For a long time, price drove everything,” he said. But he added that “they didn’t always have the same standards of health and safety”. And he said modern consumers with an eco and ethical focus are more likely to question where their products are made.

This means more brands are likely to look at their manufacturing locations with a critical eye.

“The benefits to UK manufacturing are that we are much closer to our partners and we have better control of where and in what conditions our products and raw materials are made,” Daks Head of product Nicholas Bell added. “We have always moved a considerable amount of goods and raw materials between the UK and the EU. Since Brexit, we have seen a significant increase in our customs and administrative costs, and these must also be taken into account.” 

But the chances of onshoring being key for mass-market brands are slim with UK manufacturers unable to repeat the scale available in locations like China. That means it’s likely to remain an option only for short runs and higher-end product.

John Smedley deputy MD Jess Mcguire-Dudley told Vogue Business, which also reported the news, that until relatively recently, many British brands have been focused on manufacturing as cheaply as possible, but this is changing.

“Most British brands are headquartered in London — our factory in Derbyshire is an hour-and-a-half away,” she said. “You can come and speak to the design team, see a sample or resolve an issue, really quickly. You wouldn’t have that same openness if you’re only going to visit your factory once a year or everything is communicated via email or Teams.”

She added that the company is also looking at how to make its manufacturing more responsible and has begun a new programme with Yorkshire textile recycling mill Iinouiio to turn waste yarns into new ones blended with virgin wool. 

Product made from these yarns will be used in John Smedley’s own products from AW25 and will also be available for external brands.