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Inners will face iord times next year
Page 5
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.ULIERS FACE a tough year in 1980, according to an industry Pnomist who predicts severe cash-flow problems, more dcruptcies, and fewer hauliers in business.
le forecasts that the recesn will deepen next year, th the drop in manufacing activity hitting hauliers -d. Demand will drop, and re will be greater resistance higher rates.
[hat, in conjunction with ;h shortages caused by the )vernment's monetary Aeeze, will hit demand for w vehicles. Sales, which mbed by 16 per cent in the ne months of this year, st ve robably hit their peak, e drop could be by as uch as 15 per cent.
Ge eral-haulage and par1st affic can expect to suffer DM the drop in industrial ty, and the economist .ys perators in this sector ill ave to maintain high an ards of service if they are Ike p in business.
He does see scope for more mt ct hire, however, as the :edi squeeze could affect the NT1ccount sector. Already, ep rtment of Transport figres how that it has begun to ecli e, and that this trend rou d have been more proou ced had it not been for ist nter's haulage strike.
stomers may be unwilling e ter into long-term corniit er_rs if business con kde ce is eroded by drops in t, and operators who are ire red to offer shorter-term Eeal could benefit. Van rental :o anies' business may in:re e.
owth of consumer spenmay be slow, but there is ally no prospect of it ping. This should benefit ators who are engaged in il distribution, and the omist advises them to in lin Art Iro )pe -et co GOVERNMENT'S tradeurn in reform bill was expected as e went to press this week. details were not known, bu it is not thought likely that ma y alterations have been e to the general content w ch seeks to reform the law on secondary picketing, the do • L.1 shop, and ballots. tegrate their services with customers' own tailor-made services.
Life will not be so rosy for operators who depend on a narrow range of industries for their work. The motto could well be "diversify or die," for those companies engaged in car delivery, heavy haulage for the engineering industry, and in tanker work.
On a more general note, in flation will continue unabated. The economist has only taken account of last January's wage settlements, but this year's look like being close to 20 per cent.
Crude oil prices will go on increasing, with Organisation • of Petroleum Exporting Countries expected to implement a 10 per cent rise early in 1980; and the Government likely to raise dery tax in the next budget when Sir Geoffrey Howe is expected to reduce further the level of income tax.