A Cambridgeshire precision machining specialist has won a contract that could eventually be worth £500,000 after beating its Hungarian rivals on price and quality. The company is Cambridge Precision Ltd, which employs around 70 people at its factory in St Neots.

Chairman Richard Hobbs said: “There is definitely a move by larger companies to review where they manufacture. A few years ago, purchasing teams were pushing cost down, so it made sense to migrate to low-cost countries but the reality is that the total cost of a part ends up being significantly more than the quoted price.

"When all costs are factored in, along with the poor technical support that is often experienced, the original attraction may start to fade. We still have to do our bit and make sure that we offer world-class quality and are competitive on price. The Manufacturing Advisory Service has helped with this by providing strategic support and introducing us to ‘lean manufacturing’ techniques.”

Cambridge Precision saw its annual sales increase by almost 20% in 2014. More than £200,000 is currently being invested in new machine tools, a new co-ordinate measuring machine and a number of building improvements to cope with the increase in orders. Production manager Nick Raven (pictured) said: “We can offer machining, milling and turning, plus we have a proven track record of completing specialist electro-mechanical assembly projects.

"Increasingly, companies are looking for you to get involved sooner and take a more vertically integrated approach to how you supply your products and services. This ‘one-stop’ approach is something we are very proud of and will continue to build on.”