September was a bumper month for transport & storage firms
The latest ONS business survey has revealed 23% of transport & storage sector companies reported increased turnover in September. That’s the best result of any similar business sector, says the home delivery expert Parcelhero.
Transportation & storage sector firms enjoyed a boom in turnover in September. The latest Office for National Statistics (ONS) Business Insights survey has revealed a hefty 23% of transport & storage firms (the category that includes logistics, parcels, haulage and warehousing firms) reported increased profits last month. That was the best result for any sector of the economy except education, says the home delivery expert Parcelhero.
Parcelhero’s head of consumer research, David Jinks MILT, says: ‘The latest business survey, held between 1-30 September, reveals that not only did 23% of transport & storage sector firms enjoy an increase in turnover over August but that only 10.3% saw a fall in their revenues – the best result for any sector.
‘These results look strong compared to the majority of other business sectors. Although 19.2% of manufacturers and 21.4% of retailers reported rising turnover, there was cause for concern. A worrying 27.1% of manufacturers and a downright alarming 31.8% of retailers actually reported a decrease in turnover. That puts into focus how healthy a month September was for transport & storage firms.
‘Delving deeper into September’s figures, transport & storage sector businesses were notably more upbeat about a wide range of challenges currently affecting the industry. In particular, they were significantly more optimistic than their manufacturing and retail partners. Just 14.9% of transport & storage firms were concerned about the cost of labour, compared to 22.8% of manufacturers and 20.9% of retailers. Likewise, only 12.4% of transport & storage firms were concerned about the cost of materials, compared to 20.3% of manufacturers and 22.9% of retailers.
‘It’s the same story when it comes to economic uncertainty. Just 15.9% of transport & storage firms responded that they were concerned about its impact on their turnover, compared to 32.5% of their manufacturing partners and a whopping 39.6% of retailers. In fact, of all business sectors, only the arts (14.7%) was less concerned about the repercussions of economic uncertainty.
‘That’s not to say that transport & storage sector companies were wearing rose-tinted spectacles when they completed this survey. 16.3% of them were concerned about financial costs impacting on their turnover, which was more than both manufacturers (15%) and retailers (14.1%).
‘Nonetheless, looking forward to November, many transport & storage firms remain optimistic about the month ahead. In the latest survey, 15.2% believe their turnover will increase, broadly on a par with manufacturers and slightly behind the 19.3% of retailers. More significantly, only 14.2% are bracing themselves for a decrease in turnover, compared to 16% of manufacturers and a concerning 24.2% of retailers.
‘One certainty is that it will be those transport & storage companies that are partnered with retailers and manufacturers with strong in-store and online sales that will ultimately triumph. Parcelhero’s influential report “2030: Death of the High Street” has been discussed in Parliament. It reveals that retailers must develop an omnichannel approach, embracing both online and physical store sales. Read the full report at: https://www.parcelhero.com/content/downloads/pdfs/high-street/deathofthehighstreetreport.pdf