What effect will Brexit have on the UK truck industry?
Since voting to leave the EU in June 2016, Brexit has been a daily topic in the news and although many negotiations and talks have taken place so far, there's still uncertainty over the effect brexit will have on various industries, work and trade.
What effect will brexit have on the Truck industry?
We thought we’d take a look at a few of the more obvious opportunities and drawbacks that leaving the EU will have, and what this will mean for the Truck industry in Britain.
If Government whitepaper plans for the UK go according to plan, Brexit could increase trade with the rest of the world. New bilateral trade agreements would allow companies and businesses operating within the UK truck industry to gain access to new markets.
As well as this, increased independence over regulations would allow UK transportation companies to be more involved in the rulemaking and regulation process, which could let these companies operate more efficiently.
Essentially, this means that export opportunities for businesses in the UK could increase, resulting in further demand for transportation - positively impacting on the truck industry.
Goods travelling around the UK and EU after brexit will be affected by bigger, time-consuming checks, this is because the UK will no longer be part of the single market or European Union Customs Union.
The current EU single market process means 10,500 lorries can be processed through borders everyday and there's no guarantee that this will remain the same after brexit. Longer wait times, queues and delays could be expected which would require more labour and infrastructure, something the UK doesn’t currently have.
The UK Truck industry relies heavily on drivers from the EU. Stricter immigration policies could lead to a potential driver shortage.
“The hardest hit of all the transportation sectors would be trucking, where an acute shortage of UK drivers is being worsened by the prospects of an ageing workforce. Trucking relies heavily on drivers from the EU; truck owners are simply not able to recruit enough British drivers to keep pace with demand.
Of the 290,000 drivers of heavy goods vehicles in the UK, approximately 60,000 are from the EU. Any reduction of the sector’s recruitment options will compromise its ability to serve the economy. Any reduction in supply will raise trucking costs for manufacturers.” - Willis Towers Watson.
Although we’re sure to hear much more about the ongoing Brexit negotiations, the only thing that’s guaranteed at the minute is unpredictability, which is a problem for businesses operating high value assets such as trucks.
Our contract hire can help reduce the impact of this uncertainty. By taking out a contract hire vehicle, you know your exact monthly costs and don’t have the burden of a huge deposit to pay. Your capital is freed up to continue running your business, with access to the trucks you need, for the length of time that you need them.
Plus, our in house body and paint centre means that we can custom build truck bodies to your exact specifications and brand them with your businesses colours and logos.
For more information about how how contract hire can benefit your business contact Selena on 01422 311999 or email firstname.lastname@example.org