Look closely at your investment pla ns
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T read with interest the 1 comments from three bosses of small haulage firms about an independent report we have completed for Lloyds Bowmaker on Performance Trends in Road Transport (CM29 july-4 August).
Their comments imply that our report labels smaller operators unprofessional and inefficient. It does not. The report does not identify any individual companies, but is based on the company accounts from 370 companies over a 10-year period. The analysis shows that larger companies have generally performed better in terms of profitability return on assets and collecting money from customers. This does not mean that all smaller companies were inefficient or that all larger companies were efficient.
However, if any operators want to improve their relative financial performance, many of them need to look closely at their investment plans for vehicles, computers and communications.
Investment decisions which have been postponed during the harsh trading conditions of the past few years will soon have to be made. As the editor of CV/noted recently there are reasons for cautious optimism and signs of more work about and that is bound to feed through to orders for new vehicles (CM 6-12May). The transport studies group at the University of Westminster is committed to working with all sizes of operators in many different areas to help them adapt to changing market needs.
For example, we are currently working with two medium-sized international hauliers, Inter City Trucks and Dockspeed, to help them implement a satellite communications system (CM 16-22 July 1992).
Michael Browne BR.5 professor of transport, University of Westminster, London.