Western Union Business Solutions
Navigating FX market volatility within the Manufacturing Industry with LODE Group
Navigating FX market volatility within Manufacturing
Lode Group manufactures and supplies specialist high performance carry solutions to carry specific devices for brands such as Network Rail and 3M.
“Our supply chain spans across both the Far East and Eastern Europe, with imports from China the primary source. These contracts are largely denominated in US Dollars, meaning our cost base is highly exposed to fluctuations in the GBP/USD exchange rate,” says Phil Melling, Managing Director at Lode Group.
“We were budgeting around $1.50. Then rates fell by nearly 17% to $1.24 and our profit margins were devastated. Ongoing market volatility is a big problem because our customers are very sensitive to price so this puts pressure on us to manage costs.”
Lode now proactively books currency in advance to secure exchange rates and remove the risk of fluctuations, providing stability in costs and pricing to its customers.
“Our hedging processes help us to assure our prospective customers that we can offer them stable pricing" said Phil
Company details
- Industry:
- Advanced manufacturing
“We were budgeting around $1.50. Then rates fell by nearly 17% to $1.24 and our profit margins were devastated. Ongoing market volatility is a big problem because our customers are very sensitive to price so this puts pressure on us to manage costs.” “We were using multiple providers, and last-minute comparisons were time-consuming and stressful. The dedicated support and white glove hedging service Western Union Business Solutions offers gives us back about 15% of our time per week.” “The variety of business-friendly hedging products, such as Options, allow us to fix long-term cost. Our hedging processes help us to assure our prospective customers that we can offer them stable pricing in an uncertain market” “Western Union Business Solutions is a trusted partner for us because of the expertise of its staff and selection of hedging products it offers. I feel our business is in safe hands”Phil Melling Managing Director Lode Group