Airfix brings production back to UK - ToyNews

Airfix brings production back to UK

Labour shortages and wage rises in Asia means the manufacturing process will take place in Sussex, says chairman Roger Canham.
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Certain Airfix models will now be manufactured in the UK, following challenges for parent company Hornby in Asia.

The company says it has seen Asian manufacturing plants suffer labour shortages and rising wage costs.

Chairman Roger Canham told Sky News: "The economics of sourcing our products from China continue to be affected by the reducing availability of labour and increasing costs.

"In the industrialised areas, the urban pull, the minimum wage went up by around 15 per cent, with wage inflation slightly ahead of that. The manufacturing process is being brought onshore and will be based in Sussex.

"Whilst the performance of existing and new (Asian) vendors remains the single largest risk for the business, I am satisfied that as we move forwards through this year the risk will begin to decline.

"You can no longer just apply the rule that manufacturing can be produced elsewhere. When it comes to the production chain you must be more scientific about it."

Traditional Airfix models that require glue will continue to be made in India, but the new QuickBuild models don't require glue.

The news comes as part of Hornby's latest financial results, which show the firm made a profit of £0.15 million before tax, for the 12 months ending March 31st.

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