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Currency Fluctuations and our Business
Good morning.
Some of you may be aware that the U. S. Dollar has been falling recently vs other currencies. When this happens, goods from those countries become more expensive to importers in the U. S.
For example, goods made in Germany are now more than 20% more expensive than a year ago due the German Frank rise against the Dollar. Japanese goods have risen by more than 10% during this period.
However this has not affected S & Z and its ever growing customer list for two reasons:
1. China and Taiwan have linked their currencies to the U S Dollar. As a result the exchange between the three countries has been holding constant.
2. Everything that we do internationally is denominated in dollars, further insulating us from changes in the exchange rate market.
For those of you who would like a somewhat more technical explanation of the above, I am attaching a copy of a recent N Y Times article on currency fluctuations.
As a result we can pretty much hold pricing constant for periods of as long a 12 months on new quotations and on current parts we are doing for customers.
This give us yet another competitive advantage in the marketplace.
Please let me know if you have any questions.
Best regards,
Stu
Back to Info for Customers
Roanoke, Virginia 24014
Voice 540-989-0457/ F 831-603-6399/
e-mail: szimports@aol.com
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