Transport entrepreneurs see the next five years looking sunny

Transport entrepreneurs are confident about the future. Three quarters of entrepreneurs are positive about the next five years, according to the latest business survey by Transport en Logistiek Nederland. This puts the confidence of transport entrepreneurs at the highest point in ten years.

Only a small number of business owners (3 per cent) in the transport and logistics sector are pessimistic about
the medium-term future. Three-quarters of them are (very) positive about the future. “We must now work together to support the sector so that we can turn that confidence into growth,” advises Arthur van Dijk, chairman of Transport and Logistics Netherlands. The remaining entrepreneurs (22 per cent) are neither positive nor negative about the future. This group includes a large
number of business owners who want to see how things develop first. For example, they want to wait and see what consequences Brexit will bring.

International business on the rise
In the first quarter of 2017, business activity was higher than forecast. This was mainly due to strong international activity; domestic activity declined in the first quarter of this year. There was strong volume growth and a rise in Dutch goods exports in February (+8 per cent).

Turnover levels remained the same as in the previous quarter. Again, there was a decline in the level of turnover in domestic activities, while the level of turnover in international activities grew. At the profit level, a slight decrease occurred. TLN quotes one entrepreneur: "Rates are still under pressure. Plenty of work, but we are not managing to increase our profit margin slightly. And that's actually just necessary for healthy operations."

Dissatisfied with price level
A point of attention remains the price level. This level is rising to its highest point in five years. 37 per cent of entrepreneurs note an increase in prices, 60 per cent report equal prices. Yet this says nothing about the level of prices themselves. In fact, 66 per cent of entrepreneurs are not satisfied with current prices. "Although a price correction took place at a relatively large number of companies in the first quarter, entrepreneurs are still far from satisfied with the current price level," TLN states. Many entrepreneurs attribute the low prices to competition from cheaper, foreign transport companies.