Haulage industry must diversify and cut costs due to slump in construction
Survival of the fittest is not only true of the natural world but also in the haulage industry, with the most diverse and efficient firms the ones that have battled through the recession most successfully.
Haulage companies have been badly affected by the downturn in construction which came about because of the difficult economic climate. As building projects across the country were cancelled hauliers had to fight to stay in business with work drying up, competition increasing and fuel efficiency becoming a more important factor in business viability.
Survivors were those that could remain competitive without taking on too much risk and firms with a diverse customer base also came out the other side in a stronger position. The recession highlighted the importance of offering a great service at a realistic price and being able to meet the needs of a wide range of customers.
Relying on one industry is a dangerous tactic in times of economic troubles, as haulage firms focused solely on construction contracts will now testify. Those working with a range of industries have been better-placed to cope with the tricky financial situation and will continue to thrive as the country recovers from the recession.
Cost cutting has also been a vital aspect of surviving the downturn, with vehicle tracking devices and fuel saving technology among the methods haulage firms have increasingly adopted to improve their business performance. Such measures are essential, the Chartered Institute of Logistics and Transport has said, and also help hauliers cope with road congestion and a lack of investment in highways.
Every journey must be as productive as possible, said logistics expert Geoff Dossetter. This means using fuel saving devices and maximising load space, as well as developing efficient logistics plans with the help of vehicle tracking technology.
The Freight Transport Association has begun a series of meetings with politicians to highlight the issues facing the haulage sector in the wake of the recession and lobby for more support.
“Now is the time for the transport community to demonstrate its importance to the country’s economic recovery, regardless of modal or policy interests,” commented public affairs manager Michael Webb ahead of the political party conference season.
