Business confidence falling, Logistics UK survey reveals

In August the tracker revealed that business confidence had plummeted since January, and in September the fifth survey in the series (LPT5), showed that confidence remains on a downward trajectory.

When asked to rate their confidence level on a scale from one to ten about the outlook for the next six months, respondents were less confident (6.19) than they had been the previous month (6.61). There was a similar decline in their assessment of their companies’ financial health (6.86 in September against 7.3 in August).

Offering a snapshot of the health of the logistics sector, LPT5 was conducted between 1 and 17 September 2020 and was based on responses from more than 150 businesses across 18 sectors, ranging from SMEs to large employers.

The tracker also reveals that of 10,870 HGVs covered by the survey, 2.8% are ‘parked up’, while of 6,589 vans only 0.8% are ‘parked up’. However, among smaller fleets with fewer than 10 vehicles that number shoots up to 14.5% of HGVs and 11.9% of vans.

More than four out of ten respondents said that preparing for Brexit and customers no longer trading represented the biggest barriers to their business levels returning to normal. When asked what impact the pandemic was currently having on their business, respondents cited interaction with customers and business planning as the two factors with the most negative impacts.

On staffing issues, warehouse staff were most affected, with 7.7% being furloughed and 3.3% being made redundant, while respondents reported that 4.5% of HGV drivers had been furloughed and 2.8% made redundant.

David Wells, Chief Executive of Logistics UK, said: “As the enabler of all economic activity, logistics has been critical to the functioning of our country during the crisis and it is essential to its recovery from it. But logistics also tracks the economy and the impact on it has been immense.

“Britain will emerge from the COVID-19 outbreak into a different economic climate. Now, more than ever, we need to ensure that government acts to unleash the potential of the logistics sector. Logistics UK believes a shared longer-term vision between industry and government is needed, to guide government decision making and efficient and public and private investment over the shorter term.”

*www.logistics.org.uk/lpt

Published On: 15/10/2020 14:07:03

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