Transport firms 'see gloomy future'

Most transport firms do not expect business conditions to improve any time soon, it was revealed today.

As many as 79% of transport and storage owners believe they could feel the effects of the downturn for at least another two years, a survey report by Bibby Financial Services found.

This pessimism level compares with 65% who were as gloomy about future prospects in a similar survey in spring 2011.

Covering the period July-September this year, the latest survey showed that average turnover had fallen among transport and storage firms for the third successive quarter-year period.

Transport and storage was the only industry sector in the survey - which included manufacturing, construction, wholesale and business services - to suffer a quarterly fall.

But the survey did find some optimism, with the number of transport and storage firms saying that things were really tough and they were only just surviving dropping by 18% from spring 2011, while 47% of firms said they were doing better than a year ago.

Bibby Financial Services UK chief executive Ed Rimmer said: "The impact of the increasing cost of fuel cannot be understated in this industry, and it is not surprising to see that this continues to negatively impact on the results of our study.

"However, a rise in new orders is clearly helping boost many businesses' confidence, giving hope to owners and managers in the industry that things will get better."

PA