FTA survey results shows Logistics needs more Government funding

The Government need to invest more into the transport and logistics infrastructure, if they hope to keep up with ever growing demand and remain competitive on the global market, according to a statement by Policy Director at the Freight Transport Association.

The FTA recently published their Logistics Report 2019, Elizabeth de Jong, Policy Director spoke on the matter: “With profit margins of only two per cent in 2018, logistics companies are very vulnerable to increases in operating, fuel and freight costs. As a low margin activity, we need to see new thinking and innovative solutions to ensure the UK can offer the highly competitive conditions that draw international companies to our shores, while also supporting home-grown businesses.

“Quality of infrastructure is a key priority for any business looking to invest in the UK, but this has been weakening for several years due to underinvestment in the road network, rocketing fuel prices, limited accessibility to all forms of transport, and an overall lack of innovative transport solutions.”

The FTA focused on the fact that the UK has fallen two places to 8th during the World Economic Forum’s 2018 Global Competitiveness Report, with a report from Ernst & Young – with research that found the UK’s infrastructure became less appealing to business investors. Their research found the attractiveness score completed by investors fell from 80 to 62.

From the FTA’s 2019 Logistics Report, partnered with Santander Corporate and Commercial Banking, opinions were taken from over 500 freight and logistics firms working within the UK and across the globe.
The survey found uncertainties on Brexit and the potential outcomes have had a bigger impact on confidence within the industry than many realise: with 61% saying the uncertainty has created a barrier for them, restricting them from taking an investment risk to grow their business internationally. At the time of research, 37% of responders had made no preparations for Brexit as the outcome of negotiations was still uncertain, only 17% had a plan – with 9% of businesses implementing said plans.

15% of driver vacancies will not be filled in the near future, which could only increase as the country faces a nationwide driver shortage.

Head of Transport and Logistics at Santander UK shared his thoughts: “Uncertainty has been the inevitable reality for UK businesses over the last year, especially for those operating in transport and logistics. In order that UK businesses can continue their operations with as little disruption as possible, it is vital that we work closely with the transport & logistics industry.”

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