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1 Buckling under the
Page 20
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THIS WEEK
strain of the recession
The findings of an RHA survey among members make for grim reading, especially since operators are struggling to keep their heads above water white the government seems to be ignoring their plight.
Words; Roanna Avison THE NEWS THAT nearly threequarters of hauliers in the UK have seen a dramatic downturn in business should come as little surprise given the recession.
This figure comes from a survey of Road Haulage Association (RHA) members, and shows just how hard operators are finding it to trade in the current market ('Dramatic fall in haulage work', CM 5 February).
Coupled with a warning from Plimsoll Publishing that almost 200 hauliers are in real financial danger in 2009 ('The 'danger 200' of haulage', CM 5 February), the picture doesn't look too rosy for the future of UK operators.
Jack Semple, director of policy at the RHA, says it is a major issue for the industry.
-Business demand dropping off is a big enough problem on its own, but coupled with the fact that customers are taking longer to pay, it is a real problem." Semple says.
"This industry is already well below the business average for receiving payments."
Semple suggests that since the government is bailing out other sectors, it ought to insist they stick to more reasonable payment terms for their suppliers "BERR [the Department for Business. Enterprise & Regulatory Reform] has a prompt payment code and it should be encouraging all buyers to pay up on time," he says.
The RHA has also called on the government to abandon plans to increase fuel duty by 1.84p/lit in April. "Volumes are down and almost half the industry expects rates to fall in the next six months, so a second increase in fuel duty is most unwelcome." Semple says.
He adds it is particularly frustrating when the government has reduced the tax burden for the general motorist through the reduction in VAT, but still insists on increasing fuel duty which will really affect hauliers.
"If the 1.84p/lit goes onto fuel duty that is an increase in costs of /1,000 per truck in April and the industry will struggle to pass that on in the current economic climate.he says.
The consensus among hauliers contacted by CM was that the market had been tough so far in 2009.
Bernard Howard, owner of PC Howard, says that if the company had not made a profit for the previous three years, it would not be able to continue trading "because business is that bad':
No improvement
Richard Ball, managing director at S&S Distribution, says numbers were down in the run-up to Christmas, and things have not picked up since then. -We are working hard with existing customers to ensure we are meeting their requirements and trying to make sure our name is out in the market so potential customers hear about us," Ball says.
Daniel Wood, operations manager at Fagan & Whalley, adds the Padiham, Lanes-based operator has seen a lot more competition for backloads.
"It really is a case of trying to hang on to what we've got in a market that's much quieter than usual," he says.
While the signs may not he that bright for the rest of 2009, those businesses that can hang on to customers should be able to nurture those relationships and by doing that be in a strong position to take advantage when the recession clouds finally clear. •