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It's grim out there. As a new is this the end of road haulag ennium dawns ; we know it?
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EXCLUSIVE SURVEY IN by Charles Young More than three-quarters of small haulage companies would quit the industry now if they were able to, according to an exclusive endof-the-millennium CommercialMotorsurvey.
Most said they would sell up if they could find a buyer, while others claimed they were not qualified for other work.
Of the 24% who remained committed to the industry, most admitted they were probably unwise to do so.
Last week Commercial Motor spoke to a cross-section of the haulage industry both
geographically and by operator type.
Most of the companies ran 15 trucks or fewer and had been in the industry for decades.
The survey found that, despite the positive signs that are now emerging from the Government's Haulage Forum, the smaller sector of the industry remains in a state of crisis that may do it irreparable damage.
Further results from the survey might shock outsiders but will only confirm the worst fears of those hauliers which have been struggling for the past year.
OF THOSE POLLED
II 76% want to quit the industry flow;
• Only 21% are expecting a "reasonable" profit this year: • 18% expect to make no profit; • 29% do not expect to survive any increase in fuel duty next March.
In addition to questions on survival, profit and commitment to the industry, hauliers were also asked what they thought should be done to ensure their industry sector remains viable. The answers covered a range of advice, the most popular being to: • flag out: • buy diesel abroad; • push for decent rate rises; • drive cowboys out of the industry; • drive down costs;
II join co-operatives;
• be flexible and offer a service no one else can.
A week after protest group Trans-Action told CM it was still in business and ready to listen to operators who want to continue with demonstrations, the survey found that there remain militant tendencies within the industry.
Although not asked directly about action, some operators said the best way forward was to stop work for a week and "bring the
country to a standstill". 0,1111111/40,. However, they conceded .1111 'III' this was unlikely to hapApe %Or pen because the industry is notorious for not sticking
together. THE QUESTIONS
Will you be able to survive March's budget if there is a further increase in fuel dirty?
No 29% Yes (but with difficulty) 47% Yes 24%
II Frank Hill from Frank (R&S) Hill, which runs eight trucks and is based in Manchester, said: "Ycs we will survive but with difficulty because our customers don't want to pay more. We will lose work and it will cut into our profits.'
• John Vesper from John Vosper Trans, port, with three trucks based in Clophill, Beds, said: "We will survive only if we get a rate increase. The situa tion is catastrophic."
• John Bywater from Dover based EJ Bywater European—one of the largest companies polled with 31 trucks—said: "We've flagged out to Holland with seven vehicles at the moment. These trucks have large tanks and come back with 1,100-1,200 litres aboard. We will need to implement big changes to survive."
II Two further hauliers, Erith, Kent-based Roy Bradford Transport and GB Haley, based in Braintree. Essex, said they would survive because they bought all their fuel abroad.
If you could get out of the Industry now would you?
Yes 76% No 24%
• Robert Barnard, based in Cambourne and running six trucks said: "Yes without a doubt but who would want it (the company]?" He does not expect to make a profit this year.
MI Joe Cook from Joe Cook Transport, based in Corby, said: "Yes, but need to pay finance on the trucks," He expects to make a loss this year.
• Gary Donaldson, from Wellingborough-based Finedon Bulk Haulage, said he would also leave the industry but financial commitments on his vehicles are holding him back.
Do you expect to make a profit this year?
No 18% Yes (but small) 58% Yes (reasonable amount) 24%
II Terry Swinson from Utoxeterbased Terry Swinson Transport, which runs six trucks said: "Margins are going to be down a considerable amount this year. It's harder to deal with people
and there's not as much pleasure in the industry as there used to be."
• Chris Broad from
H elston-based Roy Broad 8,, Sons, which runs 12 trucks, said: "We will make a smaller profit than we did last year and we will have to pass our fuel costs to cus tomers. We've absorbed the rises the last four times but we can't absorb any more." I Owner-driver Tim Joyce from Manchester said he expected to make a profit but not much. He also added that he would like to leave the industry but thinks he is too old.
What do small operators need to do to ensure their sector of the industry remains viable? Answers to this question were wide and varied (see buffet points in panel opposite). Below are a few of the suggestions: • Peter Benton of Coleshill, Birmingham-based Bentons Haulage which runs 30 trucks said: "Try and put up the prices—rates are ridiculous and there are no loyalties in the industry Customers want to cut rates and no one pays you on time. The sensible thing would be to all go on holiday at the same time and really show how impor
tant the haulage industry is."
• John Baird from Basil Baird &, Sons—based in West Lothian, Scotland, which runs seven trucks said: "The small hauliers need to group together and form co-operatives. It's the only way to beat the big boys."
• William Burgess from Boltonbased Burgess Bros, which runs 15 trucks, said: "People keep setting up who can't survive the pressure. They either collapse overnight or they will do anything for any price. Even the big boys are prepared to work with people who they know are cutting corners."