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Manufacturing
Manufacturers operate on thin margins with long supply chains. Currency movements on raw materials and component imports can wipe out quarterly profit. Aetas Global structures hedging programmes aligned to your production cycles.
The Challenge
Raw material prices in commodity-linked currencies (AUD, CAD, ZAR) are volatile and directly impact your production cost per unit.
Manufacturing supply chains involve 60–180 day payment terms, creating extended FX exposure windows that banks don't help you manage.
Thin manufacturing margins amplify the impact of even small adverse currency movements, a 2% FX shift can eliminate an entire quarter's profit.
The Aetas Solution
Layered forward contracts aligned to your production and procurement cycles, so input costs are predictable from raw material to finished goods.
Centralised management of all currency exposures across your supply chain, with regular reporting for your finance team and board.
A senior FX specialist who understands manufacturing economics and works proactively with your procurement and finance teams.
Case Study
Client
A UK manufacturer of precision industrial components, sourcing raw materials from Australia (AUD) and South Africa (ZAR) with 90–120 day supplier terms.
Challenge
Commodity-linked currency volatility was causing wild swings in raw material costs, making it impossible to price contracts accurately. FX-related cost variance exceeded 8% quarter-to-quarter, eroding margins and creating budget uncertainty.
Our Approach
We implemented a 12-month layered hedging programme covering AUD and ZAR exposures, structured to match the procurement calendar. Quarterly reviews adjusted coverage based on production forecasts and commodity outlook.
£78,000
Annual savings
15%
Cost variance reduced
12 months
Hedged ahead
"For the first time, we can quote customer prices with confidence. Our FX variance is down from 8% to under 2%, that's the difference between profit and loss on several contracts."
— CFO, Industrial Components Manufacturer
Frequently Asked Questions
Manufacturers hedge currency risk on raw materials using layered forward contracts aligned to their production and procurement cycles. By locking exchange rates for the currencies they source in (such as AUD, CAD, or ZAR for commodity-linked materials), manufacturers can stabilise input costs and quote customer prices with confidence, rather than leaving margins exposed to market volatility.
The Difference
Feature
Aetas Global
Institutional FX
Retail Bank
High-street transfer
Exchange Rate Margin
Long-Cycle Hedging
Commodity-Currency Hedging
Production Margin Stability
Multi-Currency Treasury
Transfer Fees
Dedicated Treasury Partner
Exchange Rate Margin
Aetas Global
Your Bank
Long-Cycle Hedging
Aetas Global
Your Bank
Commodity-Currency Hedging
Aetas Global
Your Bank
Production Margin Stability
Aetas Global
Your Bank
Multi-Currency Treasury
Aetas Global
Your Bank
Transfer Fees
Aetas Global
Your Bank
Dedicated Treasury Partner
Aetas Global
Your Bank
Comparison based on typical high-street bank retail FX pricing vs. Aetas Global institutional rates. Actual savings vary by currency pair and transfer amount.
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Tell us about your currency needs and a dedicated manufacturing FX specialist will be in touch. No obligation, no hidden fees, just institutional-grade rates and expert guidance.
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