In today’s episode Adrian Lawrence FCA talks about being a Finance Director for a Transport and Logistics business, having worked for two years in that role he is familiar with the challenges it involves.
The industry has traditionally recruited drivers from a 5 mile radius around its depots, but with the change in the economy to a low inflation model, unemployment fell which made the industry much more dependent on Eastern European drivers. Of course in the run up to, and now post Brexit, that is no longer an option for the Transport and Logistics sector. When I was an FD in 2016-2018 there were 60,000 less active HGV licence holders than available roles, now the figure is around 100,000.
The sector has also been impacted by the introduction of the living wage, auto enrolment pensions and the apprentice levy, all of which are welcome social measures, but ones that have brought challenges to the sector, as it was traditionally, lower paid work, without benefits.
The combined result has been a very tough environment for companies to operate in. Many companies are profitable but others are not and that is leading to consolidation in the sector.
It is a very interesting place for an FD to work in and there are some exciting opportunities.
At FD Capital we have a lot of experienced FD’s on our books all with Transport and Logistics sector experience, if you are looking for an FD or CFO for your business then please reach out to our team today.
Visit our website at https://www.fdcapital.co.uk