UK express market will stay buoyant, but growth slows
The UK market for express deliveries is set to remain “buoyant” according to a new report published by Market and Business Development (MBD).
However, the pace of growth between 2004 and 2008 is forecast to be slower than over the last four years, mainly because of slower global economic growth.
MBD claims intense competition will keep prices under pressure, with expansion mainly focused on guaranteed delivery options that demand a premium price. During the period the market is expected to grow by almost 14%.
The UK Express Delivery Services Market Development Report also predicts that growth in the UK market will total 6% this year, taking market value to £3.87bn (t5.57bn), despite the political and economic uncertainties.
“It is a measure of the strength of underlying demand that even in such difficult circumstances, strong growth has still been achieved, ” the report states.
There are few signs of significant consolidation in the industry suggesting that supply will continue to outpace demand, despite the efforts of some retailers to consolidate contracts.”This is likely to ensure that pressure on prices remains a feature of the market, ” according to MBD.
