For most manufacturing firms 2009 has been a volatile year, large organisations that were once thought to be recession proof have been introducing large scale redundancies across-the-board. Although some European countries have already exited the recession, the UK remains firmly in the period of negative growth which constitutes a recession. Some analysts believe that the UK will not fully start to recover from this period of economic instability until at least the 3rd quarter of 2010.
So what does this mean for the UK Light commercial vehicle market (LCV) during 2010?
The sharp downward trend in LCV vehicles over the course of the last year will start to show signs of recovery during Q3/4 of next year as confidence in the sector increases. Positive growth in this sector will be slow and will probably not be likely until early 2011. Growth in carpet cleaners helston the LCV sector is highly dependent on the recovery of other sectors including plumbing & heating, home improvements, vehicle repairs and the distribution and logistics sectors.
During the recession there has been a tendency for fleet owners / managers to concentrate on fleet maintenance in favour of purchasing new vehicles – this trend is likely to be reversed during the later part of 2010 as fleet managers look towards replacing aging vehicle fleets. Consequently the second-hand LCV market is likely to grow in size as ex-fleet vehicles are sold on.
In conclusion, the year ahead is set to see the start of recovery of all sectors not least the vehicle manufacturing industry which has suffered more than most. That being said recovery will be slow and is likely to continue into 2011.
Van Guard are a specialist manufacturer of high quality Van Roof Racks.
It has been reported that during the later half of 2010 will see the end of the economic crisis in the UK, banks will start lending and consumers will start spending meaning that there will be heavy demand on home improvement services such as heating, plumbing and carpentry as well as manufacturing and engineering services all of which heavily rely on commercial vehicles.
From an organisational perspective companies that are well equipped and ready to respond to consumer demand when the economic strain eases will be ideally placed to experience a strong level of growth thus rapidly gaining market share over slower, reactive competitors. With this in mind it is important that companies review every element of their business ensuring they are well placed to cope with the forecasted demand.
Recent industry research has suggested that over the last two years, the LCV (Light Commercial Vehicle) market has been in heavy decline as organisations have avoided replacing ageing fleets in favour of maintaining their current fleet on a greatly reduced budget. With this in mind, one of main areas that will need special attention is an organisations fleet management, logistics or transportation department leaving cash-strapped organisations with two choices:
The first option is that they can replace (or gradually replace) the current fleet with new commercial vehicles whilst increasing the number to cope with the additional demand. Obviously this is the most expensive option and could be a costly gamble if the economy does not pick up as planned.
The second option is to maintain the current fleet whilst re-furbishing to increase capacity, the addition of van roof racks, bars, shelving and storage containers will all increase the capacity of the van at a far lower cost than purchasing a new vehicle and will give the extra capacity needed to cope with new demand in the later half of 2010.
From an organisational perspective companies that are well equipped and ready to respond to consumer demand when the economic strain eases will be ideally placed to experience a strong level of growth thus rapidly gaining market share over slower, reactive competitors. With this in mind it is important that companies review every element of their business ensuring they are well placed to cope with the forecasted demand.
Recent industry research has suggested that over the last two years, the LCV (Light Commercial Vehicle) market has been in heavy decline as organisations have avoided replacing ageing fleets in favour of maintaining their current fleet on a greatly reduced budget. With this in mind, one of main areas that will need special attention is an organisations fleet management, logistics or transportation department leaving cash-strapped organisations with two choices:
The first option is that they can replace (or gradually replace) the current fleet with new commercial vehicles whilst increasing the number to cope with the additional demand. Obviously this is the most expensive option and could be a costly gamble if the economy does not pick up as planned.
The second option is to maintain the current fleet whilst re-furbishing to increase capacity, the addition of van roof racks, bars, shelving and storage containers will all increase the capacity of the van at a far lower cost than purchasing a new vehicle and will give the extra capacity needed to cope with new demand in the later half of 2010.
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