The logistics sector is optimistic, with many of its firms looking to grow in the next six months, despite continuing economic challenges, a new report has indicated.
Consequently, it looks likely that more firms in the logistics sector will need to pursue external business finance solutions to really help kick-start growth plans and fund ambitious mergers and acquisitions.
Opportunities for business growth
More than half of respondents to a survey expected to see an increase in profit levels and an improving financial picture over the next six months, whilst 63% said they will be either likely or very likely to invest in capital expenditure during the same period.
47% said they were looking to take on more employees and expand their workforces.
Logistics firms were primarily intending to grow through winning new contracts (51%), increasing their margins (18%) and maintaining existing customers (17%).
Mergers & acquisition activity was also likely to increase, as almost three in 10 looking ‘likely’ to make acquisitions during the next six months, with a further 20% actively reviewing business opportunities that are presenting themselves.
Where to access finance?
Skipton Business Finance finds alternative business finance solutions, such as invoice finance, often prove well-suited to firms in the logistics sector.
As fuel prices remain high, late payment culture remains ingrained in UK business and the staff payroll continues to eat into a large chunk of available cash resources, it can make sense for logistics businesses to consider taking out an invoice finance facility to release the cash they have tied up in unpaid invoices and free their finances. .
Why not check out our specific business finance solutions for logistics companies and see how a facility with Skipton Business Finance could provide you with the cash you need to achieve your business potential.