Be special to survive says 3i
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• Specialist carriers are faring best in the economic downturn says venture capital group 3i, which invested 23m in 40 freight, haulage and transport companies in the 12 months to the end of March.
Industry adviser Kit Noble says: "Growth will continue to come from companies prepared to seek out niche openings or to target the opportunities provided by distribution requirements to the smaller high street outlets."
Noble describes the industry's 1989 performance as "average", with profit margins being squeezed. but adds: "There is ample capital available for experienced, professional managers wishing to take advantage of these opportunities and those presented by 1992 and the opening of the Channel Tunnel."
Ambitious hauliers will need
to raise venture capital for computer systems capable of dealing with "the complex logistics of operating distribution networks", he predicts. El Industry analysts Dun and Bradstreet say that business failures are running at their highest level for 10 years. In the first six months of the year 11,600 firms failed; up 30% on last year. Marketing manager Philip Mellor says: "Small companies are bearing the brunt . one large firm's failure can bring down 200 smaller ones." LI Rockwood Distribution goes into receivership: see page 12.