Industry Analysis & Industry Trends
The Freight Road Transport industry operates the most extensive transport network of all freight modes, providing much-needed flexibility and the convenience of door-to-door delivery. The industry has historically offered faster and more reliable delivery times and less damage to goods than other freight methods. According to the latest data from the Department for Transport, road transport accounted for 74% of all goods moved in the United Kingdom in 2014. The industry is highly competitive and fragmented, with only one company, DHL Supply Chain, accounting for a market share greater than 5%.
The industry has encountered mixed conditions over the past five years. Demand for industry services plummeted before the start of the period but has been slowly recovering since... purchase to read more
Industry Report - Industry Investment Chapter
The UK Freight Road Transport industry has a medium level of capital intensity. The industry is relatively labour intensive, since each vehicle requires at least one driver. In 2016-17, businesses in the industry are expected to operate with a capital-to-labour ratio of 0.28:1. This means that for every £1.00 invested in capital, industry operators are expected to spend £3.64 on wages.
Depreciation costs are expected to increase over the period due to new emissions controls and new technology, such as computerised tracking, communication and monitoring systems, which have increased the cost of new lorries and vans. On the other hand, third-party lease operators provide an increasing amount of finance for vehicles, reducing the industry's capital requirements. Alt.. purchase to read more