ParcelHero has warned that the failure of a significant number of major logistics and delivery companies over the past year is an early warning of a possible Brexit-fuelled recession.
Calling the logistics industry a “bellwether for the economy”, ParcelHero says that the abnormally high number of leading supply chain companies collapsing in the last twelve months point to a potentially significant dip coming in the UK economy.
“The logistics and delivery industry is a key barometer of the nation’s economy. Over the past 12 months we have seen the collapse into administration or complete demise of industry stalwarts such as the Canute Group, Bedfords, Simon Widdowson and TAS Transport,” said ParcelHero’s head of consumer research, David Jinks MILT.
“It’s no coincidence that many of their customers are involved in areas of the supply chain impacted by Brexit uncertainty, such as manufacturing. The international haulage companies at the coalface of Brexit are already suffering from its impact. For instance, the car transport specialist Beamish Transport failed in March directly because of the impact of Brexit on Britain’s car manufacturing output.”
He continues: “Logistics companies fail very early in a recession as they work on tighter margins, fewer goods are being moved and their customers start to delay payments or seek company voluntary agreements (CVAs). Our latest industry study , Will Brexit resolution – whatever its shape – bring dividends or disaster? reveals most retailers and manufacturers actually weather the worst of a recession and often fail only as the economy begins to pick up and new investment is required. In contrast, haulage and delivery companies fail as we enter a downturn – as we are currently seeing.”
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