Haulage firms must adapt to survive
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• More than 25% of road haulage firms will go out of business, be taken over or have to change their ways to survive to the end of 2001, according to a new report.
Plimsoll Publishing found that successful firms and risk takers are enjoying average sales growth of 15.4%, forcing weaker performers out of the market Its Road Haulage analysis highlighted: • Winners—with low debt and high sales growth;
• Chancers—with high borrowings and high sales growth;
• Sleepers—with low borrowings and low sales growth; • Losers—with high borrowings and below-average growth. Losers have average debts up to 28.8% of sales; Plimsoll says around 16% is sensible. These companies show an average decline in sales of 4.7%, margins are slim at 1.3% and almost a third are making a loss.
Plimsoll manager David Pattison says winners and chancers enjoy up to 20% growth rates and pile pressure on existing firms hit with a -cocktail of factors including rising overheads and fleet investment.
Other sectors face the same trends, he adds.
• The Plimsoll report on 1,053 firms costs £305 from Jennifer Ovington on 01612 257800; or contact Plimsoll by e-mail at www.plimsoll.co.uk. CM readers are entitled to a 5% discount.