BACK WHEN THE AUSSIE DOLLAR WAS NEAR PARITY, THE CASE FOR BUYING OFFSHORE WAS MUCH STRONGER; THE COST ADVANTAGES WERE OBVIOUS.
However, what goes up must come down and no better example can be found than the strength of today’s Australian dollar.*
The trend is set to continue with the RBA forecasting further falls in 2016, and with expectations that the dollar will decline to US65¢ by the end of next year.
Positive effects on local manufacturing have been felt with consecutive months of recorded industry expansion, as measured by the Australian Industry Group’s performance of manufacturing index (PMI).
January 2016 was the 7th consecutive month in which the Australian PMI has been above 50 points (indicating net expansion), representing the longest unbroken run of expansion since 2010.
OEM component manufacturers may be pleasantly surprised at the current comparative pricing affordability offered by FORM2000, particularly when measured against quality, flexibility and lead time benefits.
Good news for component manufacturers seeking to use local suppliers.
*Australian Dollar Trade Weighted Index (TWI)
