• Growing business confidence in haulage sector
• Perceptions of health of own businesses also improved
• Optimism re: turnover reduced but still healthy
• Road congestion becoming a major issue for the sector
Business confidence has increased markedly over the last quarter in a key sector of the UK economy, according to the results of a survey published today. The second quarterly Business Confidence Index, commissioned by Palletline plc, the UK’s leading pallet distribution network, questioned owners and directors of haulage companies across the UK about the health of their business, current trading conditions and their outlook for the future.

The results showed that members as a whole are relatively confident about the overall economic prospects facing their companies over the next year, with a significant increase in confidence levels compared to three months ago.

Interestingly, the change was most significant in Scotland where respondents were up to a third more confident, and in Eastern England and south-west England, where confidence levels in each case grew by around a quarter.

The findings of the survey – the first of its kind in this sector - are significant given the wide recognition of the haulage sector as a key barometer of the UK economy as a whole, based on the need for more goods to be transported as consumer demand, and thus manufacturing production, increases.

The survey also showed an improvement in the perceptions of respondents regarding the health of their own business, both over the last year and in terms of anticipation of the year to come, helped by a slight improvement in expectations of the economic conditions they will face.

And although respondents were slightly less optimistic than they had been in January with regard to projections for turnover during the next 12 months, they generally believe that turnover will still increase during that period. There was also a clear correlation between a positive business outlook and the level of international business undertaken by those surveyed.

According to the survey, fuel prices and pressures on prices from clients remain the two major issues for haulage companies, but the impact of road congestion has grown significantly since the first survey, with this now ranking third in terms of its effect on operations and a particular concern for companies whose main business focus is pallet distribution.
Palletline plc Managing Director Glyn Jones commented: “It’s obviously good news for the haulage sector – and the economy as a whole – that confidence has grown over the last quarter, and that, on the whole, the industry remains optimistic about business health and turnover.
“However, the fact that optimism about revenues has decreased in the last quarter should not be ignored. This perhaps demonstrates that, in spite of the sound business strategies and practices most hauliers have in place, the market remains a challenging one, particularly in the light of rising fuel costs, pressures from customers and the growing concern of road congestion.
“This is an issue which affects every transport company in the UK and needs to be addressed quickly and effectively to allow vital consignments to be collected and delivered in a timely manner to keep Britain’s economy running smoothly.”
The Business Confidence Index was produced by market intelligence company, Andrew Lester & Associates.

Source: Press Release

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Europe  Palletline  United Kingdom