Has COVID-19 affected the Profile of The Logistics Industry?
For the first part of our #LoveLogistics campaign we sat down with our CEO Simon Crick to discuss what impact the current coronavirus pandemic has had on the logistics industry. You can see what we discussed below:
Q: Has the coronavirus pandemic highlighted the importance of the logistics industry?
SC: I think you would have to say this is definitely the case. You only have to look on social media to see all of the posts and thank you messages that are being shared. Personally, all of the people that I speak to from outside of the logistics sector are now starting to connect the dots. For instance, previously at supermarkets people would just expect to see things on the shelves, whereas now they are understanding why things might not be there and the role the industry has in making this happen.
Ultimately, I think that this is only a positive for the industry and hopefully post COVID-19 people will be more aware of what it takes to get things into shops and the vital part our drivers and logistic teams play.
‘98% of everything we consume is moved by a lorry’ - Richard Burnett told the Financial Times
Q: From your perspective, how has the current coronavirus pandemic affected the operation of the transport and logistic companies?
SC: It's fair to say that COVID-19 has obviously been extremely disruptive to the entire supply chain. Something that a lot of people will find surprising is the number of businesses out there who are taking their trucks off the road. According to RHA this figure is close to quarter of a million trucks.
Of the companies that are still operating, many of them are being forced to work remotely where possible. This means businesses are having to rethink their processes, resulting in a large shift towards making things digital, reducing paper and increasing efficiency - one positive that could come from this terrible situation.
Q: And what knock on effect has this had for drivers?
SC: There is no hiding from the fact that sadly, a large proportion of drivers are currently looking for work or have been furloughed, with the RHA reporting 25% of the driver workforce being furloughed - that's close to 100k drivers.
The contract driver market has been hit particularly hard with overall volumes being at an all time low, meaning many of the contractors are simply not required. To make matters worse, a high percentage of these people are not eligible for the current support options available from the government.
‘25% of the driver workforce has been furloughed’ - the RHA reports.
Q: Do you think that the government has provided ample support for the industry? If not, what more do you feel they could have done?
SC: There have been many reports featuring the pleas for more support from the government. I think a lot of the industry has always operated with very thin margins and the RHA reported that we're seeing cash flow run out and operators are reaching a tipping point.
You can view the report here.
Q: Do you see the industry changing once we come out the other side? If so, how?
SC: I'm pretty confident that almost all industries will change as a result of COVID-19. Pretty much all normal working procedures have had to change, with remote working forcing a wide spread digital adoption. Although this has been challenging now, I think when we're looking back in the future this will be seen as a positive step forward for the industry.
Unfortunately, on the other side of this I believe there will be many casualties as a results of COVID-19, which is sad.
Q: What can companies do to support their staff throughout this period and beyond?
SC: I think communication is key as we all try to navigate this crisis. Obviously, I appreciate this is difficult when business owners and management teams are themselves trying to work through the constant changes, announcements and new support schemes on offer, but for the huge number of people at home with little or no insight into this process, the unknown is likely to be more stressful.
We have created a few articles detailing the current financial support available for businesses, employees and self-employed workers.
#LoveLogistics - what's next?
Keep your eyes peeled over the next few weeks as we'll be posting more and more content showing insight, appreciation and updates regarding the logistics industry in collaboration with Fleet Speak. If you have a story you'd like to share, or even have an opinion on how the current situation is affecting the industry, feel free to get in touch.
