Heritage railways? Guilty as charged — I’m a huge fan. So it’s a genuine privilege to be trusted by a couple of them as Insight clients, looking after their finances.
One of the issues we’re dealing with right now?
Coal.
Most heritage trains still run on it. And it doesn’t exactly come from down the road – it’s shipped in from places like Venezuela, across the Atlantic.
Which means when fuel costs rise… so does the cost of getting that coal here.
The last delivery was around £350 a tonne. The next one is likely to be £375 a tonne. Where will it end? £450 a tonne?
Ouch.
That’s not a small increase. It’s the kind that quickly eats into your margins.
And it raises a bigger question:
How do you deal with costs that move like this?
Because it’s not just heritage railways. This is happening across the board.
Fuel prices are on the rise – and even if you’re not directly reliant on transport, chances are, someone in your supply chain is.
Their costs go up. Then yours do. And before long, you’re feeling the impact… even if you can’t quite see where it’s coming from.
Some businesses are better prepared for this than others.
Years ago, I worked with a company that manufactured car batteries. The key raw material was lead – and its price could swing dramatically.
So they built protection into their contracts. If the price of lead went up, their prices adjusted automatically. There was no scrambling, no last-minute panic – just a clear, agreed mechanism to manage it.
Right now, some companies will have something similar in place for fuel.
Others – like airlines – are adjusting prices almost overnight.
So the question is, what about you?
If fuel costs keep rising, where will that show up in your business? And how quickly?
The mistake most companies make is waiting until they feel the impact… and then reacting under pressure.
A better approach is to get ahead of it.
Start by mapping your supply chain, so you understand where you might be exposed – even indirectly.
Then get a clear, detailed view of your numbers. Not just top-line revenue, but costs, margins and how much movement you can realistically absorb.
Once you have that, you’ve got options.
You might adjust your pricing or renegotiate with suppliers.
You could improve efficiency or reduce waste. Revisit your product or service mix.
Or build in mechanisms that protect you from future volatility.
But all of that depends on one thing: having accurate, up-to-date financial information you can actually rely on.
That’s where we come in.
At Insight Associates, we work with companies turning over £1m+ to bring clarity and control to their finances.
First, we make sure your numbers are accurate and timely – so you can see exactly where you stand.
Then we help you look ahead. We model different scenarios, so you understand what happens if costs rise – whether that’s fuel, materials, or anything else – and put a plan in place before it becomes a problem.
So instead of being caught out when fuel prices spike again…
…You’ll already know where the pressure will hit – and what to do about it.
If you’d like to get a clearer picture of your numbers – and what might be coming next – let’s talk.
Just email garry@insightassociates.co.uk or call us on 01279 647 447. We’ll talk through how you’re currently managing things and how we typically work – and see whether it makes sense to take things further.
Warmly,
Garry
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