Consolidation within the UK Logistics Sector

In the last six months we have seen a growing number of large vehicle companies moving their operations abroad and smaller companies having to merge together to avoid being pushed out of the market.

According to new research from Barclays Corporate and Grant Thornton, overseas ownership of the top 50 UK logistics companies has increased to 52% over the past five years, with their combined turnover equating to 69% of that of the whole top 50, a surge of more than 40% over five years.

The research showed that 58% of respondents believe merger and acquisition activity in the sector will increase over the next 12 months, with over a third of those companies surveyed actively planning acquisitions.

The research also indicates that UK logistics firms need to be more successful in expanding overseas if they want to remain independent. Rising costs is seen as the biggest issue facing the sector over the coming 12 months.

The Barclays and Grant Thornton research also shows that 83% of businesses are concentrating on improved vehicle efficiency as a measure to counter rising costs, with only 15% currently hedging against fuel prices. With the growing demands of more improved vehicle efficiency and the need to counter rising costs more and more people will be exploring the idea of telematics systems within their trucking fleets.

Telematics units will allow users to identify key problems within their fleet such as over consumption of fuel, bad driving behaviour, etc. and will allow them to analyse the overall costs of these issues. Microlise’s Transport Management System can provide logistics companies with the ability to increase their fleet utilisation & productivity, reduce their transport & operating costs, increase their fuel economy & lower their CO2 emissions, improve customer service, improve driver safety & driving style and increase asset & load security.

In today’s current market there is a need for lower overhead costs through better driving practices and vehicle tracking. Microlise’s end to end solution will allow users to deal with all the different variables that can contribute to the overall company profit margin. Microlise’s mission is to empower customers with the ability to reduce their costs and the ability to be environmentally friendly by maximising the efficiency of their transportation.

For more information on Microlise’s Telematics Unit feel free to contact us at enquiries@microlise.com or on 01773 537000.

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