Financial Times FT.com

UK proves to be more cost-effective

By John Willman

Published: June 3 2008 05:17 | Last updated: June 3 2008 05:17

When Signature Industries needed moulded plastic parts for its communications equipment, it turned to China, where the quoted price was lower. Based in Thamesmead, south-east London, it supplies two-way radios and vehicle-tracking systems, and wanted high-quality products with carefully matched colours.

But there were soon problems with the quality of the parts, including black spots on red mouldings that led to a high rejection rate. Meanwhile, the cost turned out to be much higher than the initial quote, as the manufacturer raised the price soon after production began.

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