Top 5 reasons: Why the UK engineering world need to capitalize on a weak pound.
The pound fell to its lowest level against the dollar for 31 years last week- outstripping the three-decade low it reached the week before. Sterling dropped just below $1.32 for the first time since 1985 despite George Osborne trying to stabilise the markets after Brexit. It’s not good news for a lot of people but for exporters it certainly is. Here are five reasons why you should be taking advantage:
The falling pound is good news for foreign customers.
Products made in Britain just got a 10% price cut. Only last Thursday the pound was worth more than $1.50 - but since the first Brexit -backing results rolled in its value has slid.
Sterling’s slide makes goods more competitive.
The lower pound will help to improve Britain’s trade balance, and gives foreign customers the opportunity to buyer cheaper products.
UK companies being cheaper for foreign investors equates to more deals.
Expect more mergers and acquisitions deals, with foreign companies gobbling up UK multinationals on the cheap.
Cheaper project management costs as flights and hotels are cheaper.
Due to the large capacity of our machines, we are also contracted to work on projects from a variety of other industries and countries. (more info on this?)
To make exports, we have to bring in raw materials from abroad.
The weakness in the pound has risen the prices of componentry, raw materials and assembly from abroad. So overall, the chances of our being able to say we can sell what we're making at 10 per cent cheaper for considerable amount of time is zero.
We offer full back-up facilities with expert tool makers on-site, ensuring that the transaction and installation is as smooth as possible. We provide a one-stop-shop for the design, sourcing and commissioning of tools from low-cost countries.
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