Transport/ will bear the biggest burden
Page 19
If you've noticed an error in this article please click here to report it so we can fix it.
JAMES MORRELL, a director cof the Henley Centre for Forecasting, gave his audience cd 200 distribution managers much food for thought when fie spoke on his view of the future of distribution costs at the Cafe Royale last Tuesday.
The constituent elements of listribution management — ransport, warehousing, handing, administration, packaging and stockholding — will suffer from the effects of four related factors, he said. These are oil, labour, materials supply and interest rates.
Transport, said Mr Mon-ell, will bear the greatest burden Pf all as drivers' hours regulaLions begin to bite, leading to nigher basic wage awards while the instability of oil prices requires above average cost forecasts.
Painting a picture of the climate in which distribution managers will soon have to work, Mr Morrell discussed :he three major factors of enn-gy shortage, rising unemployment and inflation and predicted that by 1982/3, 3ritain would • again be suf!ering a major recession.
Oil prices will continue to go he said, while Western Europe's traditional export markets will themselves suffer from economic decline. Oil importing countries will contribute to inflation as prices rise. Commodities such as metal will be in short supply through lack of investment.