(CNN) -- It moved half its production to China to keep costs down, but eight years later one company is bringing production back to Britain. It's another example of the backshoring trend that has seen many European manufacturers relocate their business back home. Caldeira is a cushion-making business headquartered in Merseyside, Northern England. Since 2004 it has also had a factory operating in Zhejiang province, China. "At the time China was about to be admitted to the WTO and our Chinese competitors were actually selling products cheaper than we could make them", said CEO Tony Caldeira. Read more: Chanel's exclusivity keeps it a cut above
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Cushion maker brings production back to Britain following a steep rise in Chinese wages
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Production was offshored in 2004 when labor costs differed significantly; they're estimated to be equal next year
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UK employees are more productive, but young people in particular lack the requisite skills, Caldeira CEO says
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Since setting up his Chinese factory, Tony Caldeira said his @placeholder employees have had wages increase 400 percent.
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Last year it was cost-effective to make velvet striped cushions in @placeholder's Chinese factory, it cost 90 cents less in production per cushion.
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Last year it was cost-effective to make velvet striped cushions in Caldeira's @placeholder factory, it cost 90 cents less in production per cushion.
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However, this workforce is much older than the @placeholder employees due to a skills shortage.
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And while the @placeholder workers are younger with manufacturing and sewing machinery skills in abundance, Tony Caldeira said they don't have the same loyalty and there is a high turnover of staff.
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Tony Caldeira
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As far as @placeholder is concerned, Britain appears to be winning this round of the great pillow fight with China.
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As far as Caldeira is concerned, @placeholder appears to be winning this round of the great pillow fight with China.