Have you ever tried to get into production a high-precision injection mold cheap? How can an expensive high-precision mold, turn your manufacturing process less expensive and your product available to the customer on-time and on-budget always?
It all comes down to the cost of Quality. In the past 10 to 15 years, management types have degraded and demonized the price of mold tooling and tool making profession (yes it is more than just a machine trade). When you shop price for tooling, whether it be China or outside China, you get the price of the quality you want to pay for. There have been so many good points brought up as to why tooling cost are what they are, but the bottom line is quality. Anyone that has had to quote tooling price has walked that fine line with those that don't understand the investment in tooling can not be treated like a commodity.
When we shop for items, we look for brand names - companies whose products we (or someone we know) have used before. They have proven reliable. If that product is made in China, we will still buy it. Because of the brand name, we are confident that the product will work as promised; but if it is defective, we're also confident that the company will stand behind their product. On the other hand, if a similar product is on the shelf next to it but is built in China by a Chinese company, Americans would be less likely to buy it even if it is less expensive. Why? Because the brand is unfamiliar and we are not sure of the quality. Right or wrong, that is the American mindset.
China has experienced, well-educated engineers who can generate and modify your parts and tooling drawings. Using ProEngineer and UG, the engineers can work from product samples, concepts, to create 2D/3D engineering drawings. Skilful mold makers and most advanced machines equipped can guarantee the quality is as good as anywhere else.
Also I believe there are different grades in every business and in every country, mold companies in China have grades too, some of them are bad quality, bad management, but there are few of them, because this kind of mold shop will not last long and survive in competition.
The quality of China molds has not ever disappointed the overseas mold buyers. That is why the China mold making industry grow so fast.
It's been a long time since China mold makers compete in the global market with low price strategy. The temperate win gives China mold making industry a chance to develop fast, a complete industry chain from raw material to machinery is established in 30 years, many other industry such as household appliance, Auto, Consumer, Electronic benefit from fast growing China mold making industry.
Mold making from China is normally 30-50 percent cheaper than Europe and United States, some people said that is just because Chinese mold is low quality. I can't agree it at all. There are plenty of oversea companies doing business in China and importing injection molds from China, and there would be more. Why is that? If Chinese mold is just simply low quality, I think the smart business owners will learn their lessons and stop to buy molds from China.
During past few years, there are more and more international mold companies enter into China mainland, they are now not satisfied to just buy molds from China, instead of which, they invest into China and build their mold making factories in China, mature manufacturing chains and intelligences, cheap resources make higher interests possible, Besides, China now have become a most attractive consume market.
On March 2014, Department of the Chinese government take one more step forward, expanding the floating range of the RMB against the U.S. dollar. This means that you can have greater volatility compared to the value of the RMB in the past. Since then, the value of the RMB began to fall heavier.
Due to the devaluation of the RMB, raw materials and industrial inputs prices, China mold making
costs declined sharply. In the period of rising manufacturing costs, Chinese mold companies cannot compete on price, but the cost fell sharply restore the ability to compete on price, now they are able to lower product prices, regained the lost business.
Your budget makes it feasible to outsource tooling to China, India and other countries. This is good from a finance point. The disadvantage is when tools are brought back into UK for example to mold nobody will touch them when they go wrong or need modifications and if they do the cost applied would of made it the same price at the start as if it was made in UK / Germany. Tool construction / quality in other countries are far from good. UK / Germany may be more expensive for initial tool but they run fully auto and correct procedures are followed. Overseas beat European hands down on manual labour costs when assembling or trimming molded parts.