Sweden Makes the Cheapest Plastics

It is cheaper to manufacture plastic parts in Sweden than it is in low cost countries such as China, Russia and Romania. This is the conclusion drawn by The Swedish Trade Council after comparing the total costs of five different parts.

“Logistics costs in many cases contribute to making the total cost more expensive than in Sweden” says Karl Hedberg at the Swedish Trade Council.
“Buying parts from low cost countries is not always the better option. You often get what you pay for” Karl Hedberg states. He is a Senior Project Manager at the Swedish Trade Council.
“Everyone wants to reduce their purchase costs and turn to so called low cost countries in the hopes of paying a lower total cost for the part. But this is not always the case” Karl Hedberg says and continues that Sweden is actually one of the most honest and friendliest countries to do business with. Not to mention the accuracy and quality that Swedish companies prioritize.
“It is impossible to just look at the wage costs in each country. Equally important are elements such as productivity and quality, and in particular additional costs that can arise” says Karl Hedberg.

In a report recently published by the Swedish Trade Council a comparison was made: the total costs of five parts made in Sweden were compared with what it would cost to have them manufactured in China, Romania and Russia. The object was to investigate whether it is indeed profitable to choose a low cost country. The results show that, in total, options can be found with regard to three of the five investigated parts.

The greatest differences in costs compared to Sweden were found in wiring and electronics. However, if you want to manufacture plastic parts then Sweden is the best option.
“The total cost of manufacturing the plastic part abroad and delivering it to Sweden is very high. China has the lowest cost of the three markets but it is still fifty percent higher than the total cost in Sweden.”

 
(plastnet.se 2009-11-13)

Link to full report from the Trade Council, click here.

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