Road Haulage Survey Reveals Cautious Optimism

The results of a new quarterly nationwide survey of business confidence among UK road hauliers have been published today.

The Haulage Confidence Index, commissioned by Palletline plc, the UK’s longest established pallet distribution network, pulls together the opinions on vital commercial and trading issues of the road haulage sector, a key indicator of economic activity.

The survey has been commissioned by Palletline in order to begin the process of building much needed qualitative data for a major industrial sector. It will be repeated in early 2006 and quarterly thereafter, enabling confidence trends among hauliers to be systematically tracked.

Members of Palletline’s 60-strong UK network of hauliers were surveyed on their views of trading and economic conditions compared to 12 months ago, overall business confidence for 2006 and the key issues facing hauliers.

The survey revealed cautious optimism for 2006 among the majority of respondents, with market conditions predicted to improve slightly following a tough trading year in 2005.

Fuel prices remain the single most important issue affecting business prosperity, although in the midlands, north-east and south-east, this is exceeded by price pressures from customers.

Among key performance indicators, business turnover is expected to grow most, followed by profit levels, capital investments and employment requirements.

Nationally, Palletline members considered current economic conditions compared to 12 months ago as about the same or slightly worse. But confidence improved in terms of forecasts for the months ahead, with business reporting improvements to individual operations over the last year, and continuing through 2006.

Most members believe that conditions will improve during 2006 and consider the overall health of their own company will be about the same or better 12 months from now. They were also generally positive about future employment and capital investment.

Palletline Managing Director Glyn Jones commented: “Our survey is the first of its kind and provides a snapshot of the mood of the UK road haulage industry – arguably a leading indicator of the economy as a whole.

“By undertaking this research quarterly, we will see how attitudes and confidence within the industry are changing in the light of economic trends and other issues affecting the sector.”

The Business Confidence Index was produced by market intelligence company, Andrew Lester & Associates.