Confidence in the UK logistics sector is at its highest point since the second half of 2015 according to the latest Barclays and Moore Stephens UK Logistics Confidence Index.
The research is undertaken twice a year by specialist research agency Analytiqa and involves more than 100 senior decision-makers from the industry.
The index currently stands at 53.0, up from 51.8 in the first half of 2016. Any value over 50.0 indicates that, on balance, the UK logistics industry has a positive outlook.
Perhaps most importantly, certainly from our perspective as a technology company, is the importance now being placed on embracing technology.
Of those surveyed 60.2% feel that the use of technology is very important to help their business gain a competitive advantage, while another third thinks it is reasonably important. Just 1% see technology as “not important at all”.
Price pressure and the driver/skills shortage have been highlighted as the most important issues in the next six months. More than 40% of those surveyed feel that customer price pressure will be the most important issue to face their business, while 35% believe a lack of skilled staff will be the most important issue. A shortage of warehouse space is also a growing concern.
Meanwhile the vast majority of respondents (69.9%) believe that the outcome of the recent EU referendum will have either no impact, or a marginally negative impact on their business. In contrast, a fifth think there will be significantly negative ramifications.
The report also identifies collaboration as of growing importance as operators look to improve efficiency and highlighted that price competitiveness, value-added services and scale of networks are the key drivers of new contract wins.
The survey also uncovered that three quarters of UK logistics companies expect to increase capital expenditure over the next six months.