Logistics operators are struggling with downward price pressure, fierce competition and cost increases, and are also concerned about the impact of the UK’s EU referendum and dampening demand in China and the Eurozone – despite continued growth in the UK economy.
Those are among key findings, but the study also reveals the sector is still investing in technology and new value-added services in a bid to respond and secure growth.
Indeed, almost 70% of respondents expect their turnover to increase in the next 12 months and the same number feel sufficiently confident to be planning investment in capital expenditure over the next six months.
That said, the report also suggests that more than a third of businesses in the study are looking to acquire rivals to unlock new services and achieve economies of scale.
Optimism in H1 2016 has fallen to 51.8, compared to 61.9 in H2 2015, marking the fourth successive drop – and the largest that this business confidence barometer has recorded for the sector.
“Confidence in the UK logistics industry has taken a knock from price pressure and increasing competition,” comments Rob Riddleston, head of transport and logistics at Barclays.
“Under such pressure, the high level of planned capital expenditure is welcome news and reflects the sector’s pressing need for investment in technology,” he continues.
“It is also encouraging that the role of technology is recognised as a route to both control costs and improve service levels and investment in this area is a key trend for the sector.”