Logistics UK survey: 68% of respondents expect negative Brexit outcome
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Logistics UK’s latest Interim Survey Results have shown that over two-thirds of respondents expect Brexit and the current UK-EU trade deal to have a negative outcome for their business.
The survey was part of the second merger and acquisition report produced by Logistics UK and accountancy firm CBW.
As Logistics UK explains, the report provides an overview on trends in mergers & acquisitions activity, including valuations, and delves into some of the most important issues facing companies in the sector, including Brexit, the COVID-19 pandemic, and the industry skills shortage.
According to Logistics UK, 68% of survey respondents say they expect a negative outcome for their business from Brexit and the UK’s new trading relationship with the EU, while just under 50% of business leaders say they are satisfied with the support provided to the UK logistics sector by the government in response to the COVID-19 pandemic.
On the other hand, Logistics UK says the activity and company valuation trends in the survey are encouraging: 39% of survey respondents say valuations of logistics companies have increased in the past 12 months, a 17% rise on 2020, and 57% say valuations will continue to increase in the next year – a 30% rise on 2020.
David Wells, Chief Executive at Logistics UK, says that the sector is thinking proactively about new business models and strategies in response to Brexit, pointing to survey results that show 23% of logistics operators expect to diversify their service offering.
Despite the negative Brexit outlook presented by the survey respondents, the Logistics UK CEO struck a positive tone in his statement on the report:
“A successful, resilient logistics industry will be key as the economy reopens and, while many sectors of the economy are yet to fully bounce back, businesses across logistics will provide a good indicator of the health of the nation’s future ambitions for financial growth. As the business group representing the logistics sector, Logistics UK will continue working hard to alleviate any challenges to logistics operations to keep goods moving freely across the UK and further afield.”
Photo credit: David Dixon / Geograph UK