What affect has the Brexit vote had on Fifth Wheel Company?
Following the Brexit vote back in June, we have been closely monitoring our costs and been able to make agreements with suppliers to keep from increasing our prices. The vote led to a sudden drop in the sterling pound, but recent events (Article 50) have seen an even bigger slide in the pound to the extent that only a few weeks ago we saw two of the UK’s major airports offering less than €1 to £1!
The current strength of the Euro / Dollar has now subsequently caused us to react as we are paying more for our raw materials which are imported from Europe and the USA. For example all the doors, windows & GRP which make up our Fifth Wheels are imported from Europe and leveling systems, slide-outs and hitching components from the USA.
So what does this mean?…Well there will be a price increase in our products introduced from December 2016. Therefore we are giving our prospective customers the opportunity to place their orders before the end of the period and secure our current prices, rather than just put up the prices without warning!
But it’s not all doom and gloom! As a company we have confidence in the pound recovering and only see this as a short term factor. The advantage to our overseas customers has seen our sales increase, with recent orders to European, Australian and New Zealand customers! Also, where our usual lead time for production is 3-4 months; our recent increase in sales has seen our production lead time now increase to 5 months, with slots booked up until March 2017.