'Recession pays
Page 7
If you've noticed an error in this article please click here to report it so we can fix it.
THE PRESENT shake-out of overcapacity in the road haulage industry will result in more profitable and efficient companies running tighter operations. This is one of the conclusions of a five-year study of the industry by business information service Key Note Publications.
The study, Road Haulage, covers six main areas of the industry: industry structure, market size and trends, recent developments, future prospects, financial appraisal and financial data.
Most of the major changes in the structure of the industry have come about in the past 10 years as a result of economic factors affecting the economy as a whole, the report points out.
"Slow growth of output, inflation (particularly of fuel prices) and high interest rates have combined to make life very difficult for British manufacturers."
Profit margins have been squeezed in many industries and the general slow-down in economic activity has severely hit road haulage, the report states.
Volume of freight carried by road has declined in the past two to three years by about 5.6 per cent each year. The report notes, however, that the rate of decline in the volume of road traffic seems to be slowing down.
Fuel prices are covered in the report, with the changes in pump prices and bulk prices of dery listed in a table covering the five years to 1981. Fuel consumption in the goods vehicle sector has declined since the 1979 peak of 5.06m tonnes. This is mainly due to the general slow down in activity, the report says.
The publication costs £45 and is available from Key Note Publications, 28/42 Banner Street, London EC1 8QE.