New Government figures show transport & storage sector companies suffered a significant decrease in turnover in August, compared to July. Looking ahead to October, more transport & storage companies expect a fall in turnover than predict an increase. The home delivery expert ParcelHero says these results are significantly gloomier than those of retailers and manufacturers.
The latest Government Business Insights report paints a gloomy picture of August’s trading. More than a quarter (27%) of all businesses revealed their turnover had decreased in August 2023 compared with the previous month – that’s 2% more businesses reporting a fall than in July. The home delivery expert ParcelHero says transport & storage sector companies were among the hardest hit. A sizeable 31.5% of companies in this sector saw their turnover fall against July’s results.
ParcelHero’s Head of Consumer Research, David Jinks M.I.L.T., says: ‘This is a disappointing report for all logistics, delivery and supply chain companies that fall within the Office for National Statistics’ (ONS) transport & storage sector category. By comparison, their partners in both the ONS’ retail and manufacturing categories performed better. For example, 26.7% of manufacturing companies saw a decrease in turnover; 18.2% saw an actual rise, compared to just 12.9% of transport & storage sector firms.
‘Looking ahead, there doesn’t seem to be much light at the end of the tunnel. According to these new Government figures, more transport & storage sector companies expect a fall in October’s turnover than predict a rise. 18.8% of transport & storage sector companies anticipate a fall in turnover in October and only 16.8% think there will be an increase.
‘Again, when we compare that figure to their manufacturing partners, there’s a striking difference. Only 8.4% of manufacturers predict a fall in turnover this October, while 22.4% forecast an increase. Transport & storage companies’ retail partners are also more confident; while 12.9% forecast a decrease in October’s turnover, 21.3% expect a better performance.
‘To continue the gloomy picture, businesses were asked to compare their August results with those of the same month last year. Notably, 17.5% of transport & storage sector companies said their performance had decreased compared to August 2022, and only 11.4% said their results had increased. In contrast, 19.6% of manufacturing companies reported an increase in performance over the same month last year.
‘Finally, compared to retailers or manufacturers, fewer transport & storage businesses plan to raise their prices in October. Just 11% of transport sector firms said they plan to raise their prices next month, compared to 12.2% of manufacturers and a hefty 20.9% of retailers. This highlights the squeeze many logistics and delivery companies find themselves in currently, operating on wafer-thin margins with little room for price increases.
‘The transport & storage sector incorporates several fast-changing, agile industries. Since the end of Covid lockdowns, some parts of the logistics and home delivery market have yo-yoed. Companies with aging infrastructure and a fixed cost base have struggled. Traders and businesses can find out more about the very latest available delivery options and prices at: https://www.parcelhero.com/en-gb/uk-courier-services
