Dear Keeds,
Where do I start !! But I guess we are no different to any small or medium manufacturer in the developed World, energy is a very big cost for us, coating film and paper is expensive due to the fact you have to use large quantities of energy ( gas ) for chilled water ( 2 degrees ) for the setting beds ( you have to set the coating very quickly if you are coating at 100 + metres per minute ) then you have 17 drying boxes ( total 318 metres long ) each at a different temperature and humidity. Paper making itself is also highly energy rated so we have those costs for base and packaging.
We export over 90% of what we make, so shipping charges rise with the cost of oil ( We do not air freight as a company policy due to its high carbon impact on the environment ).
Everything else goes up as well....film base, the bags we put the paper in, all the raw materials everything at the moment, but apart from energy the biggest changes are currency and silver :
When the management bought the company in February 2005 the dollar was 1.67 to the pound its now 1.95silver was at a little over $ 6.00 per troy ounce its now $ 16.00+ and we buy silver by the tonne. The USA is obviously our biggest market.
As always, if you are a small to medium size business we have to ruthlessly control our costs and do everything possible to avoid large price increases, that we have done since the founding of HARMAN technology and we continue to do it, increasing prices, obviosly does have a significant effect on usage, we have to do it to remain profitable but we strive to keep any increases as small as possible.
Simon. ILFORD Photo / HARMAN technology Limited