STC Plc’s ICL unit hopes to procure 70% of its peripherals and components from within the European Community by the time the Single Market opens for business in 1992 – but the target is a steep one: at present, only 30% of the company’s UKP300m annual procurement of chips and OEM peripherals is done within Europe. Back in 1980, most of the company’s spending was done in the US, but following its still growing links with Fujitsu Ltd, a large proportion, including point-of-sale terminals as well as central processing units for its mainframes, comes from Japan. The benefits of buying in Europe will include the absence of tariff or customs barriers, proximity, leading to shorter lead times, and the spin-off benefit of being seen to support locally-based manufacturers and thus being regarded as a good European.
