Market update – April 2023
I would give the update every three months, but there have been a lot of obstacles lately that have kept me from writing to you. Like you, as a company, we have encountered unusual situations that, in my opinion, will persist for at least the medium term.
We have to grant a significant rise starting on 6 April in order to keep employees (we have been losing several long-term employees to other businesses that offer better compensation). This will make our salaries competitive and draw in top talent.
This is actually our biggest problem as we couldn’t create anything without them! Despite this, there have been additional rises in interest rates, utility costs, new taxable values, and the value of the pound has declined. Even the banking system is in disarray right now.
For the first time in my memory, rises in overhead are influencing our business decisions more so than the price of raw materials. It is important to remember that, unlike in the past, we are unable to “assimilate” things in the present or the future. I believe that enormous overhead costs have arrived, and the nation cannot continue to see its living standards continue to decrease.
Manufacturing in the UK will become increasingly difficult as a result of the lack of assistance. The cost of new machinery has nearly doubled, with lead times of around 18 months. The market is holding up better for us than we anticipated. It is unclear how long this favourable circumstance will persist in 2023.