Okay, here's the situation: Currently, I am making a small batch of 100 boards of my project. This is a small order, so start up costs are about 10% of the final cost, and the factory charges $50/hour (they say I can get it done in one or two hours.) These will be made in China. Places in the UK or USA won't even talk to me for an order of 100, or if they do, they provide me with outrageous prices (5-10x as much as China.)
Now I know China is cheaper, but to many people, seeing "Made in China" cheapens a product. If I were to make, say 1000 or 2000 boards, would the cost to make them in the USA or UK, or even any European country be competitive with China, even if it was slightly more expensive? I know the Arduino is "Made in Italy", and the low price point of it makes me consider the possibility that I too could get mine made in a country with higher wages. What are other people's experience with this issue?