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.
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