Confidence boosted in the logistics industry

April 16, 2014

According to the latest UK Logistics Confidence Index, the logistics industry saw a rise in confidence in the second half of 2013, compared to the beginning of the year.

The report showed that there was an increase of nearly 25 percent, with an overall confidence reading of 74.9. This was a figure that had risen by 43 percent year on year.

The bi-annual report was commissioned by Barclays and Grant Thornton UK, with over 100 industry decision makers taking part.

Darren Bear, corporate finance partner at Grant Thornton UK said that operators entered 2014 on “strong footing” and were more confident that the wider economic revival will continue to drive demand for logistics services.

“This momentum is encouraging for the sector, however the relatively high level of competition in the sector is putting continued pressure on margins. Operators would be wise to keep an eye on value-added opportunities which ingrain them deeper into supply chains and strengthen their roles as critical partners in clients’ success,” he said.

Over half of the respondents said that they believed their outlook is likely to improve in the next six months, so confidence looks set for a further rise in the next report. The results painted an overwhelmingly positive result for the industry with 84 percent saying that their turnover is expected to increase in 2014, and almost three quarters saying their profit will rise in the next year.