Summary results LPT Q1 2024
Headline findings include:
Business outlook and financial health
- Logistics businesses in Q1 2024 rate the UK economic outlook at 4.2, business outlook at 6.1 and financial health at 7.0, where 1 represents 'poor' and ten signifies 'excellent'.
- The UK's GDP is forecast to grow by 0.4% in 2024.
Supply chain issues
- Respondents reported increases in transport costs and revealed that their suppliers continue to experience delays in receiving parts (for vehicle maintenance and repair).
- 42.2% of respondents experienced delays in receiving goods, 38.7% reported extended delivery times to the EU, while 26.9% indicated delays at UK borders. These issues have slightly worsened compared to the latter part of 2023.
- The cost to transport goods in Q1 was reported to have increased by 60.8% of respondents, highlighting escalating logistical expenses and challenges in maintaining cost efficiency.
- For Q2 2024, combined large and moderate disruptions are expected to increase, but overall expected stability in performance suggests improved resilience or adaptive measures in place.
Staffing and skills
- Driver availability continues to improve but general recruitment challenges continue to impact the industry.
- A majority (80.9%) of organisations report having sufficient HGV driving staff, suggesting effective workforce management and recruitment strategies. However, 19.1% face shortages, potentially due to high turnover, recruitment challenges and some industry-wide shortages.
Delivery of vehicles and diesel van phase-out
- The logistics sector's performance in introducing and implementing innovation was rated at 5.8 out of 10, indicating a perception of moderate effectiveness compared to other large UK business sectors. This may stem from the inherent complexities and traditional nature of logistics operations, which can slow innovation adoption.
- However, logistics businesses rate themselves slightly higher at 6.1 out of 10 when compared to similar-sized UK businesses, reflecting a belief that they are relatively competitive in implementing innovations. This slight edge may be due to recent technological advancements and increasing pressure to improve efficiency and adaptability in response to evolving market demands and global challenges.
