Economy and rising costs contribute to haulier's gloom
A luke-warm economy and rising operating costs are contributing to a grim outlook for the Irish road transport industry in 2008.
The joint Fleet Transport and Michelin 'Transport Barometer' survey found that 82% of fleet operators having little or no confidence that they will meet their revenue and profit targets for the year ahead.
The monthly survey is undertaken with top owners and managers in the road transport industry.
A cooling housing market and consumer caution are potential drivers of modest slower economic growth in 2008, having a knock-on effect on the road transport industry. F
rom January to December 2007, 31% of those questioned saw turnover fall by 1% to 10%, whilst for 26% it remained the same.
Jarlath Sweeney, Fleet Transport’s Editor sais: "The last year has been one of the hardest the industry has had to endure.
Labour costs rose, the price of diesel fluctuated and many operators have found it difficult to compete in the market place against overseas operators and larger companies."
Almost half of those surveyed (48%) reported an average trading year in 2007, yet 56% experienced growth in volumes of goods transported.
The overall industry picture shows that volumes will grow by about 10%, but rates are being slashed as large hauliers cut costs in an attempt to grow market share.
