Another tough quarter
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The first quarter was tough and Q2 Looks the same, according to ApriL’s Trucking Britain Out Of Recession survey
By Justin Stanton
THE FIRST QUARTER of 2012 was tough for transport operators, according to the latest Trucking Britain Out Of Recession survey. Of the nearly 200 respondents, 36% reported an increase in volumes, while 28% declared an increase in profit compared with Q1 2011 (see chart below). However, 38% posted a decline in volumes and 46% a fall in profit.
Very few performed better than expected: just 23% and 19% reported better-than-forecast boosts in volumes and profit respectively, while 32% and 43% suffered worsethan-expected falls in volumes and profit respectively.
Logistics and contract distributions firms performed well in Q1: 55% of them saw an increase in volumes and 45% an increase in profit. By contrast, hire or reward hauliers weathered a heavier storm: 49% reported a fall in vol umes and 57% a fall in profit.
Retail and wholesale distribution was the most fruitful sector in Q1: 46% of operators reported increasing volumes and 42% increasing profit.
The outlook for Q2 is equally tough: 34% and 33% expect volume and profit increases respectively compared with Q2 2011, while 29% and 32% expect volume and profit reductions. Once again, logistics and contract distributions firms are having a noticeably better time of it than hire or reward hauliers: 53% and 47% of the former are expecting volume/ profit boosts, but just 32% and 29% of the latter can say the same. Own-account operators seem noticeably depressed: more are expecting a decline than those forecasting an increase.
As in Q1, retail and wholesale distribution is the place to be in Q2: 54% of operators in this sector expect an increase in volumes and 53% a boost in profit.
Budget woes
At the tail-end of Q1 came the Budget. It brought little cheer. Most Trucking Britain respondents highlighted the crippling effect of the escalation of fuel duty, but that wasn’t the only topic as some of the following comments reveal: “A downer, designed deliberately to prolong recession.” “A poor decision by the government not to offer a subsidy to hauliers. We put about 55% of revenue in the diesel tank. Most of the increases we have absorbed, but now we will have to put up prices, which could seriously affect our ability to win contracts in what is becoming a very price-competitive area of the industry.” “As a small business, there is no help for us: banks don’t want to help and, to top it off, fuel will go up in the summer.” “Certainly helping industry grow and giving confidence to keeping British British.” “Disappointed that a reduction in fuel duty was not given and that the future increases were not quashed. The reduction in capital allowances does nothing to encourage investment in assets.” “I believe the decision to hold on to the price increase in fuel duty has increased the risk to business. It will also have a detrimental effect on the rate of inflation. Next steps will be an increase to interest rates.” “Not bold enough. More help is needed for business. Apparently banks aren’t lending to business. Well, if legislation for timely payment of invoices was brought in, how many overdrafts wouldn’t be needed?” “We have no say in the matter, so have to deal with whatever is dealt out to our industry. You generally allow for the worst; anything other than that is a bonus of sorts.” ■