A majority of respondents in the transport and logistics sector believe competition has intensified in the past year, according to research from Menzies.

 As part of a research study of more than 1,000 SMEs, 30 road transport companies were quizzed on the current and future challenges that they face.

Key findings were:

  • 83% of SME owners in the transport and logistics sector say the rules of doing business have changed significantly in the past year (more than the cross-industry average of 75%)
  • The top three ‘rule changes’ are access to software to streamline processes such as accounting; competitor activity has intensified and important business decisions have become more data driven
  • Their biggest challenges in the year ahead are controlling costs and cash flow forecasting, and staying up to date with shifting regulations
  • 30% admitted they sometimes find it difficult to switch off properly and a quarter (27%) described their work life balance as ‘completely out of control’
  • Most say they lack support and feel they are running their business alone, on average, more than three times per week

Mark Perrin, partner and head of transport and logistics at accountancy firm Menzies said: “Small and medium-sized businesses have a much closer understanding than multinationals of how the rules of doing business have changed.

“The research shows that SMEs in the transport and logistics industry are acutely aware of the need to react to changes in market demand and make business decisions more quickly.

“For many, the ability to lay their hands on reliable and up-to-date data in a format that is tailored to the operational needs of the business is now critical.”

Perrin added: “SMEs in the sector seem broadly happy with their work life balance but there are signs that some may be struggling to find time to relax away from the business."

However, Perrin said there were indications that SMEs in the sector are feeling stretched. “The majority of SMEs in the sector say they lack support and feel they are running their business alone, on average, more than three times per week,” he said.

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