Well, what a week and don’t even get me started on the football.
Without taking this down a political route and whatever your viewpoint, the UK seems to be entering a period of political and economic uncertainty. Market speculators are causing stocks and exchange rates to fluctuate widely and as a consequence, other countries may feel nervous about making commitments to UK companies.
At Loadtec we developed both long and short term strategies about 6 months ago for Leave and Remain scenarios. Whilst the route taken by Britain is not our preferred one, we do have strategies in place to mitigate risk for both our customers and suppliers.
The initial action, taken on Friday was to temporarily suspend validity of all offers made in Sterling that were within their validity period. We contacted as many customers as we could and advised them of this action. It was met with understanding and support, which is very encouraging. In the lead up to the vote we increased the number of offers made in Euro and Dollar currencies, to minimise disruption. We believe that over the next ten days, markets will stabilise and we will have a clearer position on where to pitch exchange rates and our Sterling quotations will return to normal validity. We apologise for any inconvenience this may cause.
From a manufacturing viewpoint, as many of you know, much of our output is manufactured in the EU or USA with a smaller proportion (though no less important) coming from within the UK. Again, this strengthens our position to provide consistency and calm in a time of variability and uncertainty. So, essentially it is business as usual or, if the slogan can be applied, KEEP CALM AND CARRY ON.
Looking forward I cannot hope to speculate on how Brexit will play out or, indeed, whether it will play out at all. If brains, much closer to the politics and complexities don’t know, then what chance do I have? However, Loadtec is staying alert to market trends, meeting our customers’ requests and continuing to provide excellent products, quality and after sales support. The same qualities we are known for around the world.
If you have any questions regarding this or other matters regarding our products or service, please do not hesitate to contact us. If you want to talk about football, then please call someone else!