Slight bounce-back in UK logistics businesses’ confidence

Confidence amongst UK’s logistics businesses has risen slightly following the historic low point reached in the first half (H1) of 2016, according to the latest UK Logistics Confidence Index from Barclays and Moore Stephens. “Moving from 51.8 to 53.0, the boost stems in part from a sharp increase in new business generated by the expansion of existing customers,” said Barclays.

Barclays added: “Whilst confidence remains significantly lower than the all-time high point two years ago, when it stood at 71.4, the slight upturn is an encouraging sign and matched by three quarters (74%) reporting plans to invest significantly over the next six months. This trend towards investment comes as the sector prepares for the challenges and opportunities ahead as the uncertain impact of Brexit draws closer.

Rob Riddleston, Head of Transport and Logistics at Barclays, commented: “The logistics sector is a key component of the supply chain that this country and the UK economy relies on and so it is reassuring that the sector continues to invest.  We see businesses across the country looking to hire more and invest in the technologies that raise the levels of efficiency and productivity.

“Whilst the sector is concerned about the implications of Brexit, there’s also clear recognition of the importance of entering a period of uncertainty from a position of strength and that such investment could create new opportunities as the detail of Brexit emerges.”

Significantly, the research shows that a number of longstanding concerns persist – with driver recruitment being a key issue.

“The struggle to recruit drivers and skilled workers in the logistics sector is intensifying, with 35% of respondents rating this issue as a primary concern, up by almost a fifth on H1 2016,” said Barclays. “This is a reflection of both long term challenges in attracting British workers, and new concerns that drivers from the EU will not be available following the UK’s withdrawal.”