UK Courier demand set to grow

Demand for courier services in the U K has increased by 17% over the last five years and will grow a further 11% by 2006, says a new report from MSI.
The impact of electronic transmission has been reduced k the development of new market sectors, with electronics. IT and telecommunications companies ironically leading the way
Internet shopping has also stimulated demand for courier services, although higher fuel prices and insurance premiums have reduced smaller operato rs scope for expansion.
The growth of e-commerce and the use of couriers for smaller, more valuable items will stimulate the market.
Postal liberalisation and continuing globalisation of business activity will also open up new opportunities.
The development of webbased work exchange sites will stimulate business for smaller courier service providers and make them better able to provide international deliveries.
Last year. there were some 3,500 J courier se rv ice companies in the UK, 1,200 in London alone. The industry remains highly fragmented due to low start-up costs and lack of regulation, says
Demand for national and internati nal deliveries is outpacing local market growth. Eighty per cent of couriers now
offer national service, thanks to the development of networks and web-based trading systems. Partnerships and acquisitions will become a key feature of the sector within the next live years. as companies look to create cost and resource sy ne rgies. But, although the industry is set to become more concentrated, barriers to market entry will remain low.
UK Market for (‘Hurler Services to 2006 is available from MSI Marketing Research for Industry, priced £245 (€392). For more information, tel: 0800 195 6756 or [email protected].