How things have changed in just a couple of months.
I was reading a PWC report written pre Trump/Brexit citing “…globalisation, declining trade barriers and an increasingly mobile workforce…” as the reasons why “the transportation and logistics industry continues to enjoy above average growth”.
The world seems to have shifted into reverse gear on all these issues in a very short space of time.
The new US administration seems hell bent on protectionism with huge punitive tariffs being promised on anything that is imported that could conceivably be made in the USA.
Judging by the reactions of Europe’s leaders, we may well see tit for tat responses on imports from across the pond into the EU.
Our own position on trade with both the USA and Europe is impossible to predict. And we haven’t seen how China is going to react to the new world order yet.
Globalisation is largely blamed for making voters feel alienated and threatened and has become something of a dirty word.
Pressure on margins
In the UK, the falling pound coupled with poor weather in southern Spain, is driving grocery prices higher putting pressure on delivery costs as retailers strive to protect wafer thin margins.
And we haven’t even mentioned fuel prices yet, but now that I have…the average price in January 2016 for a litre of diesel was 102.8 pence. In January 2017, the average price was 121.7 pence – an increase of 18%. (Source: www.petrolprices.com)
So if the T&L industry feels under pressure, there are some very good reasons why.
I know it’s not all doom and gloom. There’s a lot of rhetoric and posturing from world leaders that may not be reflected in actual policy and practice.
In the meantime, the uncertainty created is more than enough to affect decision making and investment.
Effective and immediate communication is vital to keep ahead of changes out of our control. Immediate assessment of new situations and their impact on T&L organisations can make the difference between those companies that stay ahead and those that are always reacting to events too late in the day.
Many of my customers are benefiting from conferencing and collaboration services such as WebEx and Cisco Spark. They’re easy to deploy, and give you complete flexibility and control over your communications inside and outside your business.
If you’d to find out more, please get in touch, I’d love to hear from you.