Monday 20th June 2011 - Published by Robert Trigg - Communications Executive
Chinese Tiger Economy Losing its Bite - Support UK Manufacturing
A promotional merchandise expert is calling on businesses to support UK manufacturers.
John Wray, Managing Director of Cardiff-based, Sunbase Promotional Consultancy, who has 28 years experience in the marketing and promotions industry, believes in the near future, it may no longer be as cost-effective to import goods from the Far East.
As the cost of importing products, from places like China and Taiwan, is soaring to new heights, John feels there is hope for UK-based manufacturing businesses.
“Last year the Chinese economy grew by 10%, inflation rose to 5.4%, and wages increased 21% on average”, he said.
“All of this, on top of the ever-rising price of raw materials, means we are seeing the demise of low cost products from China. This will become more and more apparent over the next year or two”, added John.
John demonstrates the diminishing price differences between Chinese and UK manufactured products, as over 12 months, he has seen the cost of one particular Chinese-sourced bag rise almost 50%, from $1.09 per unit to $1.53.
With the additional cost of shipping, John maintains that it will soon be as cheap, and far more practical, to source manufactured goods from a UK alternative.
Sunbase make a concerted effort to source UK-manufactured promotional material, and John wants to encourage other businesses to take similar steps, so when price differences have diminished, the infrastructure is in place to supply industries.
In particular, Sunbase have established a strong relationship with Worcester based, eco-friendly manufacturer, Remarkable Pencil.
Edward Douglas Miller, Managing Director of Remarkable Pencil, said: “Building a healthy UK manufacturing and supply base, while living off ever increasingly expensive Chinese imports, can only be achieved by the support and vision of the industry.”
“Soon there will be no difference in cost, but distributors still will not have the benefit of sound financial management and security, low MOQ (Minimum Order Quantities), and lower carbon footprint - all of which are requested by the customer,” added Edward.
Sunbase’s promotional material sourcing service, covers everything from printed teapots to uniform accessories, and corporate umbrellas to products like The Green Pouch - a paper pouch containing compost and seeds from recycled UK household and garden waste.
