- By Beautiworx
Is my product going to cost extra to manufacture?
As you are all no doubt aware in recent times the AUD has experienced a sharp and significant fall against the USD. Indeed the size and speed of movement is 2nd only to that of the crash experienced of 2008.
From September 2014 to January 2015 the dollar’s decline relative to the USD was some 24%. Financial commentators have the expectation the dollar could fall further in the months ahead as a consequence of an increase in USD interest rates and a decline in Australian interest rates.
As a local manufacturer our import costs are impacted to varying degrees by these movements. The greater impact is felt where the import cost component is high and sourced in U.S. dollars. Fortunately our Australian manufacturing base mitigates pricing shocks as opposed to fully imported product, while at the same time a lower Australian dollar opens up fantastic opportunities for our clients in export markets.
We will be reviewing all pricing to ascertain the impact of these currency movements and will discuss with our customers forward pricing trends as a consequence, ensuing that at all times we minimise disruption to our historically stable pricing policies.