Supply and demand
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As confidence returns to the economy, how easily can operators cope with an upturn in volumes? By Justin Stanton
HERE'S THE GOOD news: more than half of the operators who took part in September's Trucking Britain survey expect volumes from the sector that generates the majority of their operation's business to increase in the next year. However, 77% of the
respondents said they would need to invest in extra resources (vehicles, drivers, trailers and warehousing, for example) to cope with volume growth of more than 5%. In total, 21% expect volumes to
increase by more than 10%, while 35% expect volumes to increase by up to 10%. The majority of the remainder (29%) expect volumes to be stable, while only 7% expect any sort of decline. The larger the fleet, the more likely the expectation of an increase: 43% of the smallest fleets expect a volume increase, compared with 68% of the largest fleets. Those serving the retail sector have the greatest expectations: 87% expect volume increases, including 32% expecting increases of more than 10%. Meanwhile, 53% of all respondents stated that growth of more than 10% would require them to invest in extra resources; growth of between 5% and 10% would necessitate investment for
24%, and a boost of up to 5% would require another 19% of respondents to invest.
How would extra resources be funded? Cash reserves are the most favoured approach (for 46%), followed by finance with a provider other than a bank (43%); bank loans and overdrafts just scraped single-digit shares.
And how easily available are those extra resources? The most alarming statistics are these: 51% of respondents are finding it more difficult to find new drivers than six months ago; 40% are finding it more difficult to find suitable subcontractors; and a significant minority are finding it more difficult to acquire new vehicles or quality used vehicles at an acceptable price.
Size is no guarantee of an easier life: 68% of the largest fleets said the availability of new drivers is getting worse compared to 48% of the smallest fleets. Similarly, 48% of the largest fleets are finding the availability of suitable contractors worse, compared with 34% of the smallest fleets. Finding new work at a good rate isn't getting easier either: 43% said it was getting worse. However, the smallest operators are finding it the most difficult: 60% said it was worse compared with 28% of the largest fleets. •