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Move back home boosts earnings

A family-run manufacturing giant on Tyneside is on target to grow its annual revenues by £1m to £8m this year as it continues to bring work back to the UK from the increasingly expensive Chinese market. Fuda-Hobart Rose, which employs 140 people in North Shields,expects to enjoy strong growth in the coming months as it reverses the trend of UK firms who rely on cheap labour in the Far East. Last year, amid rising shipping costs and unfavourable currency fluctuations, the company began to shift much of its production work back from China where it employs 150 people. This year the firm is likely to reap the financial benefits of its restored faith in the UK’s manufacturing sector with 15% climb in annual revenues. The business makes furniture and soft furnishings for large retailers such as Next, Morrisons and TK Maxx. It has kept the manufacturing of smaller items in China but last year took the decision to bring bulk items back to the North East. As well soaring freight costs, the decision was driven by increasing wage demands in China, caused largely by multinationals such as technology firm Motorola which can afford to pay more competitive salaries. Chairman David Rose said: “We are continuing to do what we started last year in bringing production work back here from China. We are finding that we can manufacture just as competitively in the UK as we can in China. “Freight rates have also doubled in the last 12 months after enjoying competitive rates [for some time]. “We are seeing a significant increase in import costs, so we have reviewed what we can do to within the UK. We will see a significant increase in turnover this year because of our organic growth.?

This was posted in Bdaily's Members' News section by Ruth Mitchell .