Logistics confidence falls to second lowest level on record, as operators take a ‘reality check’
Confidence in the logistics sector has fallen to its second lowest level on record, only slightly above that seen during the first COVID-19 lockdown in 2020. This is a further realignment of the market after the fall in confidence recorded in 2022, and suggests a dose of realism after the economic turmoil of the last year, as supply chain capacity has normalised.
Three quarters of operators feel business conditions are more difficult now than a year ago, with changing levels of demand being the number one concern. There is also a growing concern around customers retendering contracts and putting pressure on pricing – close to two thirds see it as a major issue in the year ahead. However, around four in 10 predict a rise in profits over the next 12 months.
Appetite for mergers and acquisitions (M&A) remains strong as many operators look to boost volumes through new service offerings or breaking into new sectors. 40% of logistics leaders say they are likely to make acquisitions over the next 12 months – down on our previous two reports but still the third highest ever result since the Logistics Confidence Index began in 2012.
Read our report for more on:
- Why customers are choosing to switch logistics providers
- Interest in investment in ESG and the growing commercial importance of being able to demonstrate ESG credentials
- Priorities for investment in alternative fuel types
- Where respondents see opportunities for growth
- Drivers for investment in technology, and industry insights from Diamond Logistics, Kuehne +Nagel and Miniclipper Logistics.
CONTACT
| JASON WHITWORTH Partner – M&A and Logistics & Supply Chain Management CONTACT JASON |
| BDO LLP, 55 Baker Street, London, W1U 7EU t: 020 7486 5888 | www.bdo.co.uk |
