Supply chain firms are being given the chance to bid for part of a new £125 million government fund.
The scheme is aimed at helping existing firms and bringing new business to the UK, in particular in the fields of renewable energy and low carbon technology.
Business Secretary Vince Cable said: "Recent economic and natural shocks such as the ash clouds, tsunami and Japanese earthquake have shown the fragility of long distance and single source supply chains.
"I want to seize on the increased preference that big global companies are showing for co-locating key elements of their supply chains with their UK manufacturing operations."
The move has been welcomed by a number of business commentators, including Confederation of British Industry director general John Cridland who said it will "help build UK supply chain capability and resilience".
The supply chain sector was given a boost last month in the Autumn Statement with the news that million will be dedicated to improving rail, road and broadband networks.
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