Important developments in econometrics and the increasing availability of high-quality data have been responsible for stimulating the large amount of empirical work on exchange rates published in the recent years. However the actual developments in politics and economic growth world-wide are a concern for any small business operating with several currencies in relation to its vulnerability to cash-flow and sustainability.
RFIDdirect does not wish to go into a discussion re the UK politics and Brexit from the EU itself, but the main arguments given by most publications is just this. The uncertainty what the UK is going to decide and the political consequences.
The graphics confirm a fallen value of the UK Pound Sterling, in fact a currency deflation, both against the US Dollar and the Euro, with a trend to stay low as it is. The data used for this blog and creating the graphs is extracted from several sources, banking, currency brokers and financial publications.
As a result our procurement in US Dollar for most RFID tags has increased with 16.3%. The RFID hardware mostly sourced in Europe has increased with a staggering 16.0%.
No doubt the oncoming America elections will have an influence on the value of the dollar on the exchange markets. Positive or negative, it is hard to predict as the different political journalists use arguments from different views and interests.
Over the recent years we have seen an increase in costs of shipment from China to Europe as a direct result of the energy prices. Though the energy prices have come down significantly, the costs of shipment have not followed this trend.
The Chinese labour costs are also steadily increasing with an average of 5% per year over the recent three years, with an expectation to rise again in the coming years.
As our products are imported from Asia and mainland Europe into the UK, we have to increase our sales prices for the first time in four years.
As from 1 September 2016 our published price lists are no longer valid.
Please contact us for an actual price of the product(s) you require.
We can only hople that the UK Governement and lobbyist for big companies can and will have some consideration when designing policy and trade agreements for the micro-businesses, representing 94% of all business in the UK.