Bruno's economic update

volatile stock marketEarlier we talked about the EUR / USD that, according to the banks, could evolve towards parity. As you know, the evolution of the EUR / USD has a very big impact on products imported from Asia. Personally, I don’t think that the EUR will keep weakening (unless there would be a sudden and unexpected rising interest rate in America), but the Grexit leads nevertheless to some serious nervousness. Short-term volatility can therefore not be excluded.

Another phenomenon that concerns us all are the prices of raw materials. Honestly, I’m more concerned about that. I notice that there is a shortage on oak (or at least for certain wood selections) everywhere in the world. When I look at our manufacturing in China or at our partners in Europe, they all seem to agree on the following:

1. It is very difficult to find the right wood
2. There is a general shortage
3. The wood prices are rising everywhere

Parquet and oak flooring are products that are available for almost everyone or will I soon have to wright "were." The current prices are democratic, partly driven by the impulse of (too) low margins, (too) big competition and so on. The prices of parquet will have to rise sooner or later! How is it possible that we still see parquet in the market at (too) low prices, while on the other hand there is shortage of wood? Be on your guard and keep in mind that wooden floors / parquet will be more expensive! 

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