Sterling drops, Spanish Slate increases

With Spanish slates accounting for the largest percentage of the natural slate market in the UK, what does the recent currency changes spell for roofing contractors and builders?

Since the start of 2013 there has been a considerable drop in the performance of the pound against the euro and this week it fell to its lowest level in 16 months at 1.148 euros.

Dec-Feb Euro Pound chart

Source: BBC Market Data and Digital Look.

The pound has fallen around 7% since the beginning of January due to the worsening outlook for the UK economy and the loss of the AAA credit rating, and unfortunately for UK companies it looks set to continue. 

So what does this mean?

The cost of imported products has increased by 8% since the start of 2013 due to the currency change. With the uncertain outlook for the future, we would advise any roofing and building contractors not to fix prices for a long term as the market prices will have to increase to reflect the currency rate.