More than a third of European road transport businesses are thinking about expanding their operations into other countries, with the UK leading the list, according to a survey from integrated legal and business services provider DWF.
Despite the recent challenges presented by Brexit and coronavirus, the survey found that transport companies polled in Ireland, Spain, Italy, Germany and Poland are positively looking ahead to expansion.
38% of haulage decision makers who transport goods to the UK said their company is currently considering relocating or establishing new bases in the UK. Italy was the next most popular location on 31%, with Germany and Poland both on 30% and Spain on 26%.
DWF points out that while the desire to expand into other European countries may be partly driven by opportunity, some companies are being forced to reconsider their business models due to changes to rules relating to weekly rest entitlement for drivers. Indeed, the survey indicated that most international road transport businesses are having to make changes to their operations to deal with the changes to EU Drivers’ Hours’ regulations.
As many as 63% of respondents said they will arrange transport home to base for international drivers, while 36% of those surveyed said they will look to establish one or more additional bases with a view to drivers completing shorter legs of international journeys as a result.
Vikki Woodfine, partner and Head of Road Transport and Logistics at DWF, said:
Our survey clearly shows that European road transport decision makers are gearing up for expansion and change. There has been a period of consolidation and change in the market in this turbulent year, and as things settle down, opportunities from the reshuffle of the market emerge. It is positive to see a strong appetite to expand into the UK logistics market, despite Brexit and border concerns this year. Some of this will be driven by the opportunities arising from a post Covid/post Brexit market, others are driven by the need to react to EU Regulation changes requiring drivers to return home more regularly.
Despite optimism of some companies in the survey, some perceived barriers to the market remain. The survey found that Brexit and lack of free movement within the EU was a concern for 39% if the respondents, while 42% of haulage companies consider the complexity of regulation involved in setting up operations in the UK to be a barrier to establishing a base here.
Photo credit: Philip Halling / Geograph UK