Temporary Driver Solutions Improve Financial Performance
A recent study assessing the financial resilience of the haulage industry in the East Midlands has revealed that more than 1 in 3 haulage firms may be facing insolvency. The reasons include uncertainties created by Brexit and the subsequent effects on the ability to recruit drivers from European Countries, as well as delays winning contracts involving European destinations.
The study, conducted by business recovery professionals R3 was compiled using data from Bureau Van Dijk’s Fame database and revealed that 36% of transport and haulage firms in the East Midlands face an above average risk of insolvency. This figure is almost 4% higher than any other region in the UK, meaning there is a serious cause for concern.
There is a sense of economic uncertainty within the industry due to unclear Brexit negotiations and the outcome of the Parliamentary elections. Economists are still unsure as to how these key decisions will influence trade in the UK.
One thing is clear however, with statistics revealing a decline in the financial well being of businesses in transport and haulage industry, now is a time for all businesses to start monitoring finances, and review overheads, especially if it means having to cut costs in order to trade through such potentially uncertain times.
Route4 Solutions has helped many leading haulage and logistics operators to review their cost base in terms of driver utilisation and helped them achieve a more efficient and cost effective balance between full time and temporary driver solutions, without causing a negative impact on driver morale.
Our approach involves a flexible, responsive and communicative recruitment solution that is fully focused on placing the right driver in the right placement – first time, every time. We work with transport managers to understand the peaks and lows in delivery schedules, the demand for drivers, develop forecasts for future requirements, and the likelihood of needing temporary driver solutions to meet demand and provide seasonal cover for holidays and illness.
If you would like understand how we might be able to help your logistics operation become more efficient and cost effective, please complete the enquiry form below or call our office on 0845 8520444.