The Government is offering £100m worth of support for companies to boost their supply chains, including those bringing manufacturing back to the UK from overseas.
The trend of "reshoring" is increasing, with recent research showing that one in six firms has switched production back to the UK in the past three years, benefiting parts and components companies.
Business Secretary Vince Cable, speaking at a manufacturing technology conference in Birmingham, said: "A strong manufacturing sector is vital to a balanced economic recovery, and I want to ensure that Britain's supply chains are up to the task of supporting the sector in the long term.
"Our industrial strategy, which has given business the confidence to invest, is paying dividends in the reshoring we have seen so far. We will continue to support businesses to secure more highly skilled jobs and a stronger economy."
Terry Scuoler, chief executive at manufacturers' organisation EEF, said: "This is another welcome boost for British manufacturing, which will have a positive impact on the wider economy."