Growing Confidence in UK Logistics Companies
Posted by netrix | Oct 31, 2017
Barclays Corporate Banking, alongside Moore Stephens, recently carried out an investigation into the confidence of UK-based logistics companies. Such a study is useful at a time when Brexit talks seemed to have reached an impasse, and there is no clear end in sight.
Brexit's on everyone’s mind
When questioned over how business has been performing this last year, 45% said things were harder. Fewer than 10% expressed feelings of greater certainty over Brexit now than they did last year, and 61% expect Brexit to have a negative overall impact on their business.
However, the picture isn’t all bad, with almost half pointing out that things are better than they were five years ago. This highlights that, though Brexit has affected things as of late, prior to this companies have been enjoying more prosperous and less worrying years.
With mounting doubt and uncertainty, it’s surprising to find that a mere one in 50 of those surveyed said they had engaged the advice from an industry professional. It appears that, with so much uncertainty, firms see little point in paying to discuss the issues with those who likely have little idea of what’s going to happen as they do.
It’s business as usual
As of yet, there are few signs of businesses taking steps to mitigate any upcoming changes. Rod Riddleston, head of transport and logistics at Barclays Corporate Banking, attributes this lack of change as a sign of confidence and resilience to any changes that come their way. However, others might consider moves to reroute trade through Northern Ireland, as carrying out appropriate preparation, something that too few firms are actually doing.
Ron did note that “as the path ahead becomes clearer, this business as usual approach will need to flex.” It appears that a battle to maintain existing customer relations is more apparent on their minds and that they are achieving this by investing in new technologies. Beyond this, 40% of all firms surveyed expressed the sentiment they are looking to acquire others in the coming 12 months. This shows a 15% increase compared to results from last year.
Firms are taking this route of consolidation as a defensive measure to protect the market share they have already acquired. Experts realise that growing importance of e-fulfilment and shifts in markets due to Brexit will be crucial in the coming year.
These desires to acquire and keep expanding further highlight growing levels of confidence. However, despite findings, it should be noted that to compete in a post-Brexit environment, high levels of confidence is not necessarily enough. It is this ability to understand the new environment and pivot accordingly that will decide who succeeds and who falls behind.
Here at Staples, we have a large number of years offering global transportation of products across a number of sectors, and are constantly preparing ourselves for any changes Brexit may bring. We strive to offer all clients satisfaction and security knowing that their shipments are safe in our hands. To find out more about the services we offer, and to discuss any upcoming shipments you may need sent get in contact with us today.