Transport and logistics

The transport and logistics industry encompasses a diverse range of service providers including freight, rail, air, road and related support.

As the industry continues to consolidate to meet the increasing demands of its customers for ‘end to end’ services, smaller road haulage companies in particular are facing a unique and complex set of challenges.

We see the current issues affecting smaller haulage companies as being a lack of sophisticated business processes as small, ‘mum and dad’ businesses expand, a lack of contractual understanding (that is, limited power to negotiate terms and conditions with customers), andcustomers’ increasing price sensitivity (due to the growing purchasing power of major retailers) while fuel and wage costs rise year after year.

Additionally, other items to be considered include limited industry benchmarking to compare and measure performance,weaknesses in key sectors adversely affecting demand (such as retail and manufacturing), and driver shortages and tactical or ineffective retention strategies.

Other emerging macroeconomic issues include increasing safety and compliance standards, implications of Euro V and VI (emission standards), further consolidation across the industry, the impact of government policy on investment in road versus rail transport, and inadequate management information systems.