Manufacturing volumes are generally much lower than a few
years ago; a direct reflection on demand from high street. With an upside of
lower volumes the downside is higher prices and as companies look closer to
home for new manufacturing partners to help accommodate shorter lead times and ultimately
less risk. Some brands and suppliers that have delayed passing on the full
impact of price increases for a couple of seasons are now having to give in as season
after season of lower profit margins are finally taking their toll.
In previous years there has always been an influence in the pricing
process that could offset a price increase, but sadly for the last couple of
seasons nothing has been available.
Everyone’s margins throughout the supply chain are being
compromised. Rest assured you will not be the only one putting up prices, and
you must try no matter what to protect your profit margin and secure you are
here to trade another day.
There may be some light on the horizon as some predict that
prices may well start to come down over the next year or two, we will have to
wait and see…
