The future is Bright or is it?

[RED STAG]

Tornado to increase price for wire soon, posable interest rate rise along with subsidy uncertainty.

 Grant money not being splashed about like it was oh and Brexit to name but a few how are you finding the industry at present?

[Frontrowfencing]

Everyone increasing wire prices I would say, I doubt it just tornado.

Brexit, I don't know how it will affect things, but I don't think it will be any worse than it is now, and I don't think it will affect smaller people such as myself. Grant money and subsidy, they could be affected by brexit, but it always goes in fits and starts, if grants end, then so be it. I think farming will be stronger if it has to stand on its own two feet. Other countries such as n.z. Lost subsidies an they are doing fine. Maybe lead to more innovation, smaller farms who knows. As for interest rates, they are only talking, let's wait and see. Any borrowing I have is on fixed rate, so I am not to worried. However, they have gone up and down for years it's a certainty. As for the industry, at present we are not to bad, got work on, have more staff employed than ever before, not through choice but necessity. Phone is ringing away steady and I am paying the bills. So I am quite happy, however who knows what a months time will bring. One thing is fences, will always be needed grants or not! If a fence is not doing its intended purpose it will need fixing or replacing, a lot of fences gone up on grant schemes that could soon be failing. I am sure there will be something about! Fingers crossed we will be fine mate.

[premnayloon]

That is the second rise of over 5% this year is it not?

Now I have asked two other suppliers and they say the have no price rises in the foreseeable future, they did raise prices early in year but not at levels of tornado.

 

They are playing a fine balancing act here. They produce a quality product but I have spoken to two customers who only use tornado but have asked me to supply details of cheaper alternatives, they know the quality of tornado wire but think that enough is enough and are willing to compromise.

 

Poor old brexit, blamed for everything funny how nothing has got cheaper surely not everything is going to cost more.

I am of the opinion that many people are using brexit as an excuse to push up prices. I've asked for exact reasons why and get the reply brexit. Yes but WHY? They never give a specific answer

Its just a bloody racket in my opinion.

 

I have to say this is the quietest year I have known hopefully just a blip.

[tepapa]

Industry is still currently good. Grants still available and brexit not yet had an negative effect on the industry. I think it will be two years before reality hits and we will know what the future holds. Either way people are still using tanalised timber so they will still need fencers.

[West Fork Fence]

We have enough work to get us well into 2018, and the phone rings steady.  Grant money in Indiana has been tight for a few years, but some good money flowing in Kentucky.  Prices go up and prices go down, but as long as people eat beef and feed horses, I think I'll have a job. 

For what it's worth, if you'd get your customers switched to fixed knot from Tornado and space your posts out.........The fence would cost less.

[premnayloon]

We have enough work to get us well into 2018, and the phone rings steady.  Grant money in Indiana has been tight for a few years, but some good money flowing in Kentucky.  Prices go up and prices go down, but as long as people eat beef and feed horses, I think I'll have a job. 

For what it's worth, if you'd get your customers switched to fixed knot from Tornado and space your posts out.........The fence would cost less.

Prices do not go down they go up. Then when stuff gets cheaper the price then remains at that price it never goes back down again. But when prices rise up they go again

[West Fork Fence]

Prices do not go down they go up. Then when stuff gets cheaper the price then remains at that price it never goes back down again. But when prices rise up they go again

 

http://www.forecast-chart.com/chart-crude-oil.html

 

That's not entirely true.  Diesel is less than half of what it cost in 2008.  Our steel is also cheaper now than it was then.  I sold feeder calves for $3.00/lb in 2015....Today they are worth about $1.30.  Corn in 2007 and 2008 was over $7/bushel, and is $3.25 today.  7 or 8 years ago, the aluminum for a 20' boat would cost me $7k.....Today it's about $4k. 

[aaron]

Who knows what the future holds. As for the wire increase it is the second one in 6 months, not ideal for anyone but buy as much stock as you can, 7% is better than interest rates in the banks so plough it into wire. Who knows in another 6 months you could be 14% better of!