Ukraine War and Skiing Industry
What comes to mind when you think about the year 2022. The beginning of the post Covid era? Everyone thought so, an humble beginning. But the devastating war in Ukraine has been haunting us since then.
You can wonder how war in Ukraine is connected to skiing? Let me break it down for you.
Ukraine as we all know is one of the major exporter of wheat. But the lesser known fact is that Ukraine is also one of the leading exporter of winter sports equipment.
Most of the major ski and board manufacturing companies have their factories in Ukraine. They amount to more than 60% of Winter sports equipment exports. Manufacturers such as Fischer, Rossignol, Technica and Amer sports all have closed their factories in early February when the war had started.
Though some factories opened on late August, they couldn’t meet up with the demand. Also are not functioning at their maximum capacity. Thanks to the ongoing war and reduced personnel.
This has forced manufacturers to have cap on their orders, making most of the inventories sold out. The supply chain which was heavily hit by COVID is once again being devastated by the war in Ukraine.
This has led to bullwhip effect, wherein the manufacturers couldn’t meet up with the retailer’s demand caused by the consumers.
All this has made the prices go up by more than 10% above normal this year. The difficulty and delay in getting the sports equipment might cause the consumers to spend money elsewhere or in a completely different sport.
Ski Resorts in Ukraine :
Ukraine is also home to some amazing ski resorts such as Pylypets, Bukovel and Trostyan mountain. These resorts were closed as soon as the war began in February 2022. Though now some of them are partially opened, skiing industry will have one less gem.
But the impact of the war doesn’t end in here.
Let me explain how the war in Ukraine has affected the currency markets.
The pound has already lost its value against dollar. Now the supply chain issues caused by the war in Ukraine has slowed down UK’s manufacturing sector. All this has made the value of the pound lesser and less.
The conflict in Ukraine has direct impact on the Europe’s economy caused by the reliant on Russian oil and gas. The sanctions from the West have heavily limited the supply of this. The worsening of the war had steadily made the Euro weak.
Before moving further on, let us see what do you need for skiing?
Here we focus on the skiing equipment, the following are the common gears,
You can see the normal cost of these equipments from the images below from Newtoski.
You can either rent some of your skiing equipment or buy them entirely. It depends entirely on your needs. If you just want to experience skiing, not planning to do it every season, then it is advisable that you rent the gears.
If you are a hobbyist, it is wise to invest in your equipment. In the long term the rental cost would exceed your investment. Also, your equipments would fit you perfectly giving you a perfect skiing experience.
So how can you have the best ski experience this season without breaking your bank?
As you have seen the supply chain issues caused by the war has made the currencies weaker and the prices of goods costlier. During this inflationary period it is wise to spend your money on well established startups rather than costlier brands.
Since the startups has already stocked up their inventory earlier this year, their prices are way cheaper ( 30% to 40% ) compared to the branded items.
Here at Snowvision, expertise in Prescription ski goggles, has even went ahead to slash our prices by 10% to help customers during this rough season.