Varne Economic Conditions


 

Inflation and Exchange Rates in the 1970s
Soaring inflation and a declining British Pound presented difficult manufacturing conditions.

By the mid 1970s in the UK, the cost of goods (including, of course, materials used to make boats) had doubled. Simultaneously, the value of the British Pound had halved against many European Currencies; dire conditions for exporting manufacturers, including Varne Marine who had strong demand from Holland and Scandinavia.

The lowest exchange rates were around the time of the IMF crisis in September, when a cash injection was given as a loan to prop up the value of the pound. The following Winter of Discontent 1978/79 didn't help matters

The table below shows GBP Exchange rates in Varne's European Markets
Dutch Guilder detail not available yet, but holland was an important market

Dutch Guilder German Mark Swedish Krona French Franc
Jan 1971 x
Jan 1972 x
Jan 1973 x
Jan 1974 x
Jan 1975 x
Jan 1976 x
xx 1976 x
Jan 1977 x
Jan 1971 8.7
Jan 1972 8.3
Jan 1973 7.5
Jan 1974 6.3
Jan 1975 5.6
Jan 1976 5.3
Nov 1976 3.9
Jan 1977 4.1
Jan 1971 12.4
Jan 1972 12.4
Jan 1973 11.2
Jan 1974 10.7
Jan 1975 9.5
Jan 1976 8.9
Nov 1976 6.9
Jan 1977 7.2
Jan 1971 13.3
Jan 1972 13.3
Jan 1973 11.9
Jan 1974 11.2
Jan 1975 10.3
Jan 1976 9.1
Oct 1976 8.2
Jan 1977 8.5

This table shows the massive inflationary pressure which manufacturers were under.
Varne Marine - Economic Conditions