Month: July 2019

Optimism in the logistics industry has fallen to its lowest level on record, says a Barclays/BDO survey, with operators concerned by tougher trading conditions, no-deal Brexit fears and skills shortages.

The Logistics Confidence Index by Barclays and accountancy and business advisory firm BDO, published today, reveals growing pessimism in the logistics industry, with an overall reading of 49.7. It is the first time in the history of the Index that confidence has dipped below the all-important 50 mark, indicating that overall the sector is more pessimistic than optimistic about the state of the market.

The Logistics Confidence Index is compiled by Barclays and BDO from in-depth surveys with over 100 industry leaders – together generating company revenues of more than £17bn – to assess the overall level of confidence and future expectations for the UK’s logistics operators.

This is the 12th iteration of the Index, which was first conducted in 2012, and shows a drop from 52.6 in H2 2018 – significantly below the record high of 74.9 posted in the second half of 2013. The fall is being driven by respondents reporting that current business conditions are more challenging than last year, with just 14% claiming they are more favourable.

Brexit fears are a significant contributor to the fall in confidence. Respondents indicated that plans for the future are being delayed as a result of Brexit uncertainty, with almost half (47%) making lower levels of investment or placing decisions on-hold due to Brexit-related issues since the 2016 referendum. Perhaps more encouragingly, it appears that the vast majority of operators are taking steps to ensure they are prepared for a range of outcomes, with just 5% saying they have taken no action in response to Brexit, down 10% from the previous Barclays/BDO survey.

Despite an increase in demand for some operators as a result of their customers’ Brexit planning, the industry is clear in its opposition to a no-deal departure from the EU for the UK.

Businesses were asked whether they would see more or less business from customers in different parts of the world under a no-deal Brexit. For EU customers, no-deal scored net -52%, with +9% under a deal; for UK customers, a no-deal outcome was also considered to be less positive than a deal being achieved (+8% and +31% respectively); and even for rest of the world customers it was +3% for no-deal, versus +9% with a deal.

Labour concerns are a persisting worry for operators, with 43% of businesses indicating that driver and skills shortages are the most important issue facing them this year. Furthermore, 59% selected drivers as the job role for which the industry’s skills shortage is having the biggest impact on their business.

Automation has been cited by some as a potential solution to skills shortages but, while there is some appetite for greater automation, responses suggest that widespread automation may still be some way off. More than 80% of those surveyed expect less than 10% of warehouse roles to be replaced by automation or robotics in the next five years. However, this is expected to increase at speed, as more than a quarter predict that at least 30% of these roles will be automated within 10 years.

There are some elements of the Logistics Confidence Index that give more cause for optimism. The majority of businesses still expect to post an increase in turnover (63%) and profit (55%) over the next year. This should feed through to increased investment, with more than a third of firms ‘very likely’ to make significant capital expenditure over the next 12 months, up 2% from 2018. There is also an increasing focus on green issues, with 72% of respondents planning to invest in sustainable projects in the coming year.

Perhaps surprisingly given heightened cost pressures and confidence concerns across the wider economy, it appears that price is not the primary consideration for logistics operators when trying to attract new business. When asked to identify the key drivers behind their recent contract wins, more respondents selected the provision of value added services and personal relationships than opted for price competitiveness.

However, in response to what the main focus to achieve their growth plans would be over the next 12 months, the most popular response was cost control (29%), suggesting that in order to thrive a balance has to be struck between managing cost and protecting margin, and being able to demonstrate to customers that they can provide value added services to differentiate their offering from competitors.

Richard Smith, Head of Transport & Logistics at Barclays Corporate Banking, said:

“Our logistics operators are sending a clear message – a no-deal Brexit is going to hurt the industry and must be avoided. The business leaders we surveyed have combined revenues of £17.2bn, so the fall in confidence they are reporting should be taken seriously.

“We don’t need to panic – the industry is extremely resilient and the Index’s dip into negative territory is marginal and comes after a long run of optimistic results. Logistics providers are doing their bit by investing in new technology and sustainability projects, but are dependent on the external environment being trade friendly to help them achieve growth and make a positive contribution to the UK economy.”

Camso has recently been honoured by Toyota with the Core Value Award: Respect for People (Toyota Material Handling) and the Global Contribution Award (Toyota Industries Corporation).

Core Values Award: Respect for People

The Core Value Awards are part of Toyota’s most important awards and granted to suppliers who are recognized as living Toyota’s values and who act as industry role models through their actions and results. Among the five categories (Respect for People, Customer Focused, Embrace and Drive Change, Teamwork and Family Spirit, and Professional Excellence), Camso won the Respect for People award.

“It is with much pride that our team accepted this Core Values Award,” says Gregory Lewandowski, OEM Sales Director, Material Handling, North America at Camso. “This recognition is proof that our values of Empowerment, Integrity, Teamwork, and Commitment resonate with our cutomers and are clearly visible and beneficial when interacting with us.”

Toyota defines this award as a recognition for partners that treat their associates [employees] as their most valued asset. Camso’s extensive training activities, onboarding and employee training programs combined with its active presence in communities around the world, are evidence of the company’s dedication to its people.

Receiving the Global Contribution Award a second year in a row

The Global Contribution Award is the most prestigious award presented to suppliers by Toyota Industries Corp. and recognizes companies who successfully meet Toyota’s requirements in providing premium performance products and outstanding service.

“For our team, this award represents the recognition of an increasingly strong partnership with Toyota Industries Corporation, and the important level of mutual trust between our organizations,” says Emmanuel Marchat, Representative Director – Japan at Camso.

Both awards reflect the strong partnership between the two companies on a worldwide scale and their commitment to improving standards in the material handling industry.

Packaging maker Loadhog has unveiled new branding to “emphasise its constant determination to drive innovation in returnable packaging”.

The Sheffield-based employee-owned manufacturer is committed to designing, developing and manufacturing new sustainable packaging and supply chain solutions which save companies valuable time, money and labour.

The new branding not only includes a new logo but also the Hogmark™ which gives Loadhog its own symbolic reference to industry standard and innovation in packaging. Like a hallmark is stamped on articles of gold, silver & platinum to certify its purity, the Hogmark™ will be stamped on Loadhog products to symbolise quality, innovation & environmentally friendly packaging.

Jake Charlton, Loadhog’s marketing manager, said: “Loadhog has come a long way since its birth in 2003 and has now reached a point when the company feels its original branding no longer fully reflects what the business is about.

“We are firmly committed to reducing logistics and packaging waste and known for genuine innovation in manufacturing products which provide benefits throughout the supply chain. The new branding is clean, modern and befits the quality embedded within the packaging we design.”

Alongside the brand launch Loadhog has also made various key website developments and digital marketing improvements to ensure efficient communication to an ever-growing international market.

Health and safety are an integral part of lifting specialist LIFTEUROP’s CSR approach. For many years, the company has had in place a series of measures for effectively managing workplace health and safety. A policy that improves not only employee working conditions, but also productivity and, above all, product quality.

“We want our staff to work safely. We are implementing measures such as appointing, as required by law, a safety officer. His or her mandate is to provide workplace health and safety information, conduct risk assessments and introduce the measures needed to eradicate potential sources of danger. On a regular basis, we hold various health-oriented training and information sessions (noise, backache, etc.) for our employees),” explained Michèle Detaille, ALIPA Group’s Managing Director.

The first step needed in order to guarantee operator safety in the workshops is to maintain order and cleanliness. “It is very important to us that our workshops are neat. Many of our clients take notice of this while visiting the company. We have also put floor markings in place in order to improve traffic flow, define storage areas, etc. This way, everything has its place and we avoid accidents,” explained Raphaël Bozet, Workshop Foreman.

Anti-wear mats have been placed at all workstations in order to improve working conditions for operators when they have to work for several hours in the same spot. Some machines have also been improved. “For instance our sandblaster! We just installed anti-noise chambers to improve auditory comfort for operators. Just like our TAGMAKER (the machine used to make ALITAG nameplates), whose walls we panelled to reduce noise nuisance,” added Raphaël Bozet.

LIFTEUROP has been “Sécher & Gesond mat System” certified since 2014, as a result of these provisions. This label has just been renewed in 2019. Issued by the Accident Insurance Association (AAA), this label undergoes partial reassessment every year and total reassessment every three years.

LIFTEUROP was founded in 2010 in Wiltz, where it manufactures lifting equipment and accessories in its own workshops, equipped with sophisticated machinery, under the STAS brand, renowned for quality and design for more than 65 years. Certified ISO 9001 and 14001 and CSR, LIFTEUROP is integrated in the lifting division of the ALIPA Group, a Luxembourg specialist in industrial packaging and lifting, which totals about 130 employees.