NFC chairman rebuffs v dre rental f or rd hauliers gloomy PDM forecast
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A CONSULTANT'S gloomy review of contract distribution was rebuffed by National Freight Consortium chairman Sir Peter Thompson last week.
Dr Bernard Warner, who forecasts for the Henley Centre, was giving the 1985 Lex Wilkinson Lecture at a meeting of the Institute of Physical Distribution in London.
Overcapacity in almost all segments makes it a buyers' market, he said.
Key innovations ;Are likely to be in the fields of in
and control, hut he cautioned operators against launching into speculative investment on a cotninon system for communicating operational information between supplier, distribution contractor, and customer. "Like most other areas of British business, the competitive climate tbr transport and physical distribution has intensified since 1980. There is no evidence that these changes will be reversed by the end of the decade," Warner said.
The NEC could not see the situation inure differently. said Sir Peter. "The physical distribution industry is in a tremendous ferment of change. All the rules are being redrawn. The opportunities for profitable investment sect ii to Ille to he immense.
NEC has invested 12120 million this year, -If you arc right," he told Warner, "I'll cut my throat.'•
Warner also told the meeting that operating costs per tonne/km will differ increasingly from operating costs for a constant mileage. "The implication is that haulage rates will continue to increase by less than operating costs, at least until 1989."