Recently, currency markets have been volatile to say the least, with the US dollar and Euro at times rallying against the British pound (GBP) and more recently falling. The events of August through to January in 2009 has seen almost daily changes to the strength or weakness of all of the major trading currencies including the Euro, the US dollar and the GBP. While short-term predictions for these three currencies are probably best seen through a crystal ball, the long-term outlook is that the Euro and US dollar will gain and maintain a strong position against the British pound.

What does this mean for imports into the United Kingdom from overseas manufacturers in China and Eastern Europe?

Prior the end of 2007 rally of the Euro and Dollar against the pound, buying imported products from China and Eastern Europe appealed to many UK businesses and local government as the pound had more buying power. In January 2008, the GBP hit records lows against both the Euro and US dollar - for importers of products from overseas this meant that their buying power significantly weakened in the Chinese and Eastern European export markets.

This reduction in purchase power along with an increase in transportation costs means the overall appeal of buying from overseas manufacturers has decreased advantages.
 

When you are investing in goods and services, you need to know that you are receiving the best deal for your time, effort and money. Apart from quality delivery, you also need to be assured of quality service. Businesses and Government alike are always seeking new ways to increase the purchasing power of their budgets while ensuring the goods and services they receive meet both their short and long-term needs.

UK Manufacturers need to strive much harder than their overseas competitors to meet and exceed the needs of their clients, as our overhead costs are higher than many other countries. While costs may be slightly higher for goods manufactured in the UK than from some overseas countries, there are many benefits in buying direct from a UK based manufacturer.

Buying from a UK manufacturer means that you can:

• Work with a manufacturer that is regulated and can understand your business and what you need to achieve with the products,
• Work with a manufacturer who understands the environment your product needs to operate in and who it needs to serve.
• Can easily access pre-sale and after sales service,
• Depend on lead-times for delivery,
• Ensure the manufacturing process is socially responsible,
• Cut down on shipping costs and
• Ensure that the quality of goods and services are assured.