Toolkit to Avert Troubles
With latest statistics showing that as many as 1 in 10 Road Haulage companies may disappear over the next few years*, a new product is receiving a lot of attention from the industry.
The recently launched RHP Toolkit has been designed to overcome some of the major issues that the industry is likely to face. The Toolkit makes it easier to identify the impending onset of many challenges, and provides route maps to help identify various issues
Martin Coyne, managing director of The Ludgate Partnership, who masterminded the RHP Toolkit said; "The road haulage industry often faces tough challenges, the most recent one being the significant increase in fuel prices.
"However, the sector challenges also include increasing customer expectation and significant environmental and legislative changes putting greater pressure on businesses where profit margins are already notoriously low."
The RHA confirm that, on average, 30% of an operators cost is represented by fuel alone which is unlikely to improve with the current volatility of fuel prices. There is also a driver shortage in the industry, which in turn drives up wage costs in the sector.
Add to this the increasing regulations and pollution controls plus tough competition from across Europe where diesel can be up to 50% cheaper than that for UK operators. The RHA and FTA estimate the cost of overseas competition in lost revenue to the UK haulage industry is £3 billion per annum.
The FTA also estimate that an average EU lorry coming into the UK, would cost a UK operator approximately £25,000 per annum in duty and levies to the Treasury, with foreign vehicles making no contribution. The UK government has also shelved a planned charging system for UK roads and there is therefore no short-term solution to close this gap.
These difficulties are further compounded by the downturn in the Retail Sector, which is having a knock on effect on the logistics operators. Indications so far suggest the usual upturn for the festive season will not be enough for some haulage businesses to survive after the New Year.
Martin continued, "For some businesses they will have reached a critical stage, for others they can see troubles looming. But whatever issues companies have, the best thing is to act early. Often a prompt minor action can prevent a major problem - or even insolvency - later on."
The RHP Toolkit is freely available by contacting Louise Gumery at The Ludgate Partnership on 0845 071 0854. In addition the firm is offering a free one-hour consultancy to companies concerned about their individual situation.
* Industry projections suggest as many as 1 in 10 companies may disappear over the next three years either through consolidation or business failure.