Evidence that manufacturing is beginning to flow back to Britain from the Far East emerged yesterday after a Midland company announced it was repatriating some production from China.

The changing economic climate means that Newgate Clocks, of Oswestry, Shropshire, is reversing the trend that has seen large volumes of manufacturing move to China and other Far Eastern countries.

Managing director Jim Read, said yesterday that he is partially resuming production in Britain because manufacturing in China is becoming more expensive.

“We have seen the costs of making our clocks in China increase by 30 per cent over the past year,” he said.

“The cost of raw materials has gone up, taxes have increased, and labour costs have risen as China invests more in workers’ rights and health and safety.

“We began moving our production to China seven years ago to be able to compete with other manufacturers, but with costs rising over there it is no longer as profitable as it once was.”

Mr Read started the company 18 years ago, at the age of 21, from his base in Oswestry. The firm grew to have a turnover of several million pounds annually, but four years ago produced its last clock in the UK.

Yet later this month, production will resume on several models in the UK, and Mr Read believes that the time could be ripe to turn back the clocks and return to British manufacturing entirely.

“We are just starting gently, and seeing how things go. We could be looking at creating five or ten jobs in the next year or two, but it depends how the market reacts. Returning to the UK will mean that costs will increase slightly – but we think that people are maybe ready to back British industry,” he said.

“It will mean that we have better control over our products, better copyright, and the ability to bring new ideas to the market faster.

“So many products are coming in from abroad, and much of it is pretty bland. We think that people are beginning to think about where their products come from and turn away from the mass-produced ‘Made In China’ items, supporting instead unusual, well-designed products made here.

“It’s an experiment. But I hope that in our own small way we might make other manufacturers start to think about where they are investing their money.”

Black Country glassmaker N J Bradford – winner of last month’s Birmingham Post Business Award – is another company benefiting from changing conditions.

Managing director Neil Bradford said the company was seeing a growth in interest from potential customers who would previously have dealt with Chinese manufacturers.

He said recently: “This has come at a time when the value of the pound has seriously declined and therefore made our products so much more competitively priced in comparison to the foreign imports.

“We are receiving approaches from potential customers who are no longer feeling financial gain from buying imported goods.”

Birmingham Chamber of Commerce and Industry said last night it was “watching developments” amid signs that manufacturing work is flowing back to Britain.