A majority of operators would consider leaving a client if the introduction of a clean air or low emission zone meant that doing business with them would no longer pay, according to the findings of the Asset Alliance Industry Monitor 2019.
The report– now in its second year and launched today (30 April) at the CV Show – surveyed the readers of Commercial Motor and Motor Transport – comprising MDs, owners and senior managers at UK road transport businesses.
It revealed that 57% would move on from customers due to the financial impact of urban environmental legislation, while less than a quarter (23%) would remain loyal irrespective of the cost of clean air compliance to them.
With the London Ultra Low Emission Zone having gone live on 8 April, and Birmingham and Leeds set to follow suit next year, the pressure to comply with a minimum standard of Euro-6 or face fines is ratcheting up.
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Some 60% of those surveyed said that the purchase of compliant vehicles was having a detrimental effect on the cost of doing business, while 59% said local authorities had not been effective in communicating their clean air plans.
Asset Alliance Group CEO Willie Paterson (pictured) said: “The road transport sector works with low margins, and the introduction of more stringent environmental legislation is tough.
"The fact that more than half of fleets may walk away from existing customers because of rising costs puts the challenges we are facing into stark reality. Our focus continues to be supporting operators to manage their fleets and balance sheets to ensure they remain sustainable and open to opportunities of scale.”
- The free 20-page report can be downloaded direct at Asset Alliance's website and also covers subject areas such as the shape and size of O-licence holders in the UK and their predictions for their financial performance in 2019. It also analyses buying patterns among UK operators, including the impact that low emission and clean air zones are having on fleet purchases.
Main photo: PA Images
