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Regional businesses welcome weakened Australian dollar

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The recent drop in the Australian dollar has brought some relief to trade-exposed regional manufacturing businesses.

The Australian dollar is currently trading at about $0.91 cents, down from a peak of $1.10 in July 2011.

Marketing manager of Queensland’s Buderim Ginger, Craig Todd, told the ABC that his company, which sees 45 per cent of its revenue come from exports, that business in markets including the UK, Asia and the US should pick up accordingly.

"The last couple of years the Aussie dollar being over the US parity has made it really hard either for us as an exporter if we're selling in foreign currency or if our customers over there who want to buy it have had to pay a hell of a lot more for exactly the same price for us here in Australia," he said.

Similarly, J Smith & Sons, which “manufactures a range of heavy-duty off-highway trailers for the coal and hard-rock mining industries”, has also welcomed the change in the exchange rate.  

Kerrin Smith, managing director, told the ABC that a large amount of the company’s components are imported, so the exchange rate had a big impact.

"So we'd probably for every cent it drops ... the dollar, there's a rounding figure, we'd probably get somewhere between a 40 and a 60 per cent gain in the close of the cash gap."

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