But there is hope for '77 for the survivors
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iF YOU think things are pretty bad on the haulage front at the moment then hang on to yoUr bank balance — they will be getting worse, according to a market survey done by a leading transport group.
The report says that the prospects for the next 12 months are not bright. With manufacturing output remaining depressed there will, it claims, be little scope for any recovery in freight transport business.
But the survey does expect manufacturing production to grow strongly in 1977, leading to a marked rise in demand for haulage work. There will be fu -ther acceleration in 1978, but economic growth is expected to slow down again in 1979-80.
For the coming 12 months, however, it's going to be a battle for survival. The survey says that: "The continued recession and low level of transport demand will mean that severe competition will maintain the squeeze on margins."
General haulage and container services will be slack in 1976 and profits will remain low. The outlook for general parcels and small freight network services is also gloomy.
The survey sees no signs of the downward trend in this sector levelling off. The decrease in volume could be less in 1977, but would re-emerge In 1979-80. Heavy haulage could expect I to experience a slackening off next year and it could be 1978 before demand picks up again because of postponed investment programmes.
The changes in distribution practices were reflected by the outlook for contract hire and specialised services. Both, were doing well and could expect to do better.
All this of course is the view of one survey. To get a broader based picture CM staff have been talking to operators around the country to get their views. Read on for their reports.