Is A Strong Pound The End Of Exporting?

Do companies that export lose their edge as the £ strengthens against the $/€

by Vince Ferguson | Monday 2 June 2014

Although a stronger £ makes holidays for the UKs somewhat stretched incomes more affordable, there is a negative impact on industries such as ours. Inciner8 exports approximately 90% of its products worldwide; something that has helped it win the Queen’s Award and become Export Champions for the region. However, in an attempt to maintain margins, due to forex rates, prices need to increase accordingly. Is this achievable?

I would strongly argue yes. Although we exist in a world that is very price conscious, you cannot underestimate your product’s strength or the value of “Made in Britain”. At Inciner8, we have belief in our product. Not only in terms of its build quality and its durability, but also in the fact that we are solving a global problem – escalating waste production due to an expanding population.

As individuals, we cannot control external forces such as forex, but we can control our products identity and its need to exist. Inciner8 will also accept payment in a multitude of currencies which can help to minimise the forex fluctuations. Adopting this approach, we have seen new orders going to existing and new territories globally and the stronger £ is not the end for us.

Nor should it be for other exporters; I would encourage them to identify their own brand strengths, and maximise these rather than letting price be the dominant force. And when your working day is done, you can relish in the fact that you can possibly extend your holiday from 7 days to 10 days in either Europe or the US for little extra personal expense, or have an extra glass of wine on the house … cheers!!


Vince Ferguson
Inciner8 Ltd
+44 (0) 1704 884020

Monday 2 June 2014 / file under Finance