Turnover fell for more than one in eight transport and storage firms in April, according to official figures, showing that the sector’s recovery is faltering ahead of the election.
Office for National Statistics (ONS) data showed 12% of businesses in the industry saw their revenues fall and domestic demand for their services fell by 6.5%.
Parcelhero said the results would concern the Prime Minister, having just called a snap election and with the sector acting as a barometer for the overall economy.
David Jinks, head of consumer research at Parcelhero, said: “A number of issues are at play behind these headline figures that are inhibiting the sector’s ability to bounce back.
“Transport and storage companies faced a number of significant challenges during April.
“24.2% said the cost of labour for staff such as drivers and distribution centre workers was a problem.
“On top of this, 6% still reported a shortage of available labour as a continuing issue.”
Jinks added that with less than four weeks to go before the General Election, the lacklustre economy was contributing towards business problems: “11.6% of transport and storage companies said that in the period 19 April to 19 May, economic uncertainty impacted their business turnover,” he said.
“Crucially, 9.1% of transport sector companies reported insufficient domestic demand for their services in April and the first half of May.
“That reflects wider problems in the UK economy affecting retail and manufacturing that have ripple effects across the transport sector.”
However, June could see a turnaround in fortunes. Parcelhero said 10.4% of companies in the industry thought their turnover would increase this month, with just 5% believing it would decrease.
“As we prepare for the forthcoming election, it’s clear from these rollercoaster figures that a period of economic stability is what most transport and storage companies require as, indeed, do their manufacturing and retail clients,” Jinks added.
“For courier and postal industry companies, costs and a flat economy are also supressing demand in this key post-Covid period.
“Looking at the issues facing transport and storage sector companies in the run-up to the election, a wise adage springs to mind: ‘It’s the economy, stupid.’”
