Happy days as diary maker Letts brings production back to Britain

LETTS, the venerable diary maker, is the latest company to shift production back to Britain as rising costs in the Far East and improved technology back home have made manufacturing in this country attractive once again.

The 215-year-old family company has always maintained some manufacturing in Scotland, but certain products were made in Asia for cost and capability reasons.

Now Letts has invested £230,000 in new printing technology which will allow it to produce more of its diaries and personal organisers at its 250,000sq ft factory in Dalkeith.

Sales and marketing director Charles Letts said the three machines would allow the company to make better use of its 350-strong Scottish workforce and stabilise employment at the plant.

He said the firm had always preferred to manufacture in Britain but customer demand for more complex diary designs forced it to branch out to the Far East, where they could be produced more cost-effectively.

But this has “inevitably brought issues in terms of producing finished products on time alongside the increasing cost from Far East suppliers”, he said.

Letts said production costs in Asia had been rising as wages in China were climbing fast. A booming internal market also meant Chinese manufacturers were less interested in exporting.

“They don’t necessarily want to continue low cost manufacturing for the rest of the world and as a result they are pushing their prices up,” Letts said.

The company does not employ staff directly in Asia, but has a sourcing office in Hong Kong to commission orders.

The firm had been making about one-third of its products overseas, but that will now be cut significantly as the latest technology increases productivity and makes it cost effective to make those products in Britain.

Letts said manufacturing at one site in the UK gave the company closer control of its production, which was something valued by clients, especially in the retail market where short lead times are key. The firm, which started life as a stationer in 1796 and created the first commercial diary in 1812, also produces branded products for the corporate market.

Letts’ move follows news that the UK textile industry is benefiting from fashion brands moving more work back to Britain. N Brown, the firm behind home shopping brands such as Simply Be and Figleaves, recently announced it would “significantly” increase the amount of clothing it sources from UK manufacturers. Sir Philip Green, whose Arcadia retail empire includes Topshop, Wallis, Dorothy Perkins and Bhs, also gave the textiles industry a major boost when said he was “very supportive of seeing if we can open some UK factories”.

For the fashion industry, the marketing appeal of a “made in Britain” label has always held a strong appeal, but Letts said that his company’s UK site also offered “a unique selling point”. Corporate clients in particular are keen to know where their products come from, he added.