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Review of Standard Charges 2022

Dear Valued Customer,

Due to ongoing and recently escalating market volatility of costs in raw material, subcontract processing and energy costs, we have taken the difficult decision to review our prices and charges to all our customers.

The well documented energy crisis has resulted in our direct suppliers implementing additional energy surcharges to all orders; including current orders, and in some cases a variable charge that is not decided until the month before delivery.

Ford’s own energy costs have disproportionately increased recently. Whilst there are some internal changes taking place to alleviate the impact, it is recognised that to continue to provide the best levels of service, we are forced to implement the following changes to all live current and new orders from 1st October 2022:

  • Introduce a new Energy Surcharge on all order lines to the value of 10% of the order line. We intend on applying this as a separate line to orders and invoices rather than inflating piece price. This is for ease of change for reduction or removal of the charge in the future. On Quotations this will appear in Ts & Cs. If you have any issue with this please let us know ASAP.
  • Our new Minimum Line Charge will be £250 per line.
  • All First Article Inspection Reports (FAIRs) will cost £200 to all customers whether it is requested or whether it is required through AS9100 (AS9102) due to break in production.

We want to reassure customers that we are sharing this increased cost burden and are focussed on reducing energy usage and cost in the following ways:

  • Operational Efficiency – we will be changing shift times and moving to 4 day workingweek (Mon – Thurs) to reduce heating and compressor usage, whilst maintaining the same weekly production hours.
  • Energy Efficiency – investing and installing more energy efficient equipment across the site, in terms of machinery, lighting, heating, etc.

It has been established through our cost forecasting that these actions are unlikely to create a negative effect on production and service and maintain a surcharge below what could have been as high as 13%.

The governments Energy Bill Relief Scheme (EBRS) has been announced however it is still not clear how this will effect the direct cost to our business or to our suppliers. When this does become clear it may have an impact on the rate of surcharge we apply to your orders. We will inform you if and when this is the case.

Thank you for your understanding and co-operation on this matter and we look forward to continuing to work with you.

Please confirm you are in receipt of the letter and new pricing and will be applying this to all orders.

Yours Sincerely

Chris Ford
Managing Director

Our North Shields factory is 2 years old

Our North Shields factory is 2 years old

9th February 2015

Our North Shields factory is 2 years old and was officially opened in January 2013 by local mayor Linda Arkley, this high volume manufacturing facility will allow us to maintain high demand for our manufacturing processes. Here’s to many more successful years at North Shields. READ MORE >

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