So how does the recent UK referendum on European Union membership get to affect the cost of the workwear you buy? We take a look at the effects of Brexit.The £ the € & the $ all affect the price of goods in the global economy, Brexit affects that balance
Now we don’t want to get in to a deep political view here, but there will be things that happen in coming months that will affect you & the money you spend on work clothing. The British Pound has fallen to a 30 plus year low versus the US Dollar & much of the worlds garment production & buying is based on that International Currency. In short terms, It’s going to be more expensive to import clothing to the UK & as such prices will rise. At present the exchange rate has fallen by over 7.5% so a mid-year price increase is going to happen! We’ve already started to see warnings from major suppliers:
“Due to the recent results of the EU Referendum and the UK leaving the European Union, there have been a number of fluctuations in exchange rates, and consequently this will mean a number of price adjustments from brands across our marketplace in the coming months.”
Some products are bought at fixed prices, well in advance, so it’s not likely to be every product, or even every brand that has an immediate increase, but our view at present would have to be that by the end of the year it’s going to be an across the board increase in every sector of the workwear, staff uniform & promotional clothing industry.
The UK promotional clothing industry, like many low cost industries, is also seeing the pressure of rising costs in wages, Where the underlying National Living Wage is rising quickly, along with an increased employers National Insurance Contribution. These are combining to push the cost of production up considerably. To put this in some kind of context, Adding the two together & production costs from workforce labour will have a possible increase in the order of 35% over the next four years.
So in summary: We see prices rising from now through in 2017 from a product point, and through 2020 from a production point. Our advice is, If your staff uniform needs replaced, now is a good time to do some buying as it’s only going to get more expensive.