According to research carried out by Close Brothers – a leading UK merchant banking group – more than 50% of UK haulage and transport SMEs are thinking of switching to a four-day working week in the face of rising energy costs. The cost of living crisis is hitting everyone right now, with inflation and the war in Ukraine among the leading causes.
The research showed that an average of 57% of the companies surveyed would switch to reduced working hours in order to save money. However, for firms that employ between 61-250 staff, this figure rises to 66%. In fact, the rising cost of energy has led to 63% of UK haulage SMEs reporting that these cost increases had impacted profits.
Energy Bill Relief Scheme Not Sufficient
On October 1st 2022, the UK government introduced the Energy Bill Relief Scheme for businesses and other non-domestic customers, however, this doesn’t seem to have been sufficient in terms of support. Despite the scheme, 47% of respondents stated that had had no choice but to take out additional finance.
Overwhelmingly (92%), respondents stated that they had explored energy-saving measures to some degree, having considered things like turning off air-conditioning, switching lights off and turning down the thermostat. Many feel that this is the only way to ensure they’re able to pay their bills and employees and continue to operate.
SMEs Most Exposed to Price Changes
Speaking of the challenges faced, Close Brothers’ transport division chief executive John Fawcett had this to say…“It comes as little surprise that many business owners are exploring the option of taking out funding to ensure their cash flow is protected and they’re able to continue to meet their financial commitments.
We know through our own research that business sentiment is at its lowest since the first lockdown and has fallen significantly from record highs just 12 months ago. Energy costs are a significant contributing factor to this fall in confidence, with it ranking highest in their list of concerns, ahead of inflation, interest rates and materials supply”.
While inflation may be set to drop in 2023, the feeling is that energy costs may go the other way, meaning these challenges may become more acute in the near future. As such, it appears that UK haulage and transport firms have another challenging year ahead.
Supporting the Industry With Leading HGV Training
2022 was an extremely challenging year for the UK haulage industry, with many issues being faced. If this news is anything to go by, 2023 looks to be no different, however, the HGVC team will continue to support the sector with industry-leading HGV licence acquisition programs that can be scaled to meet any size of requirement.
If you’d like to know more about us and what sets us apart from the competition, please take a moment to browse our website. Alternatively, to get in touch directly, either click ‘contact us’ or call 0330 818 8888, and a member of our team will be more than happy to discuss your needs.
