Despite the continuing uncertainty over the UK economy and the future of foreign drivers post-Brexit, confidence amongst UK’s logistics businesses has risen from the historic low registered in the first half of 2016, according to a new survey.
Although the latest UK Logistics Confidence Index from Barclays and Moore Stephens, remained depressed at 53 in the second half of 2016, compared with the high point two years ago of 71.4, it is at least up from the 51.8 low seen six months ago.
Just over a quarter (26%) of new business in the past six months came from the expansion of work with current customers, but downward pressure on rates remained a problem, cited by 41% as an important issue.
Nevertheless, 74% expected to make significant capital expenditure over the next six months, with two-thirds arguing that investment in technology is especially important, particularly to provide greater operational visibility.
Respondents believed that risks associated with Brexit are focused in a few specific sectors, with the automotive sector seen as significantly more vulnerable than groceries.
But problems recruiting drivers and skilled workers in the logistics sector are intensifying, with 35% of respondents rating this issue as a primary concern, up by almost a fifth on the first half of 2016.
Rob Riddleston, head of transport and logistics at Barclays, said: “Whilst the sector is concerned about the implications of Brexit, there’s also clear recognition of the importance of entering a period of uncertainty from a position of strength and that investment could create new opportunities as the detail of Brexit emerges.”
