UK Logistics
Outlook
Forward thinker: Matthew Marriott, commercial director of Hellmann Worldwide Logistics UK.
been hit par- ticularly hard this year, meaning that the industry is worry- ingly reliant on the continuing
resilience of exports. Although the strength of exports has a number of positive con- sequences, such as narrowing the trade deficit and, to a certain extent keeping the manufacturing and logistics industries in the black, it is actually a symptom of the Eurozone’s economic weakness.
Exports are attractive to developing econo- mies outside of the Eurozone, as the relatively weak value of both the pound and the euro has suddenly made European goods more affordable. This in turn demonstrates a shift in the global economic power structure, as investment and infrastructure in places like Brazil, India and the Far East has developed at a pace far beyond that of Europe. The Government has spoken of the need to ensure that the UK is actively engaged in trying to sell and trade with these burgeon- ing economies – which is undoubtedly what needs to happen – and yet the reality is that the austerity measures of the likes that Britain has been subject to over the last few years has seriously undermined this intention. For example, China has a huge, thriv- ing manufacturing output, but unless UK companies have the capital and confi- dence to buy, they will simply sell to Asia and America, effectively cutting the UK out of a potentially lucrative trade loop.
EFFECTS OF CUTBACKS
Obviously the UK cannot ignore the fact that we are in a state of static economic growth. But without advocating a head-in- the-sand approach, it is incredibly important for the future economic health of the country as a whole that the government projects
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a sense of stability and improvement. The current problem is such that, while cutbacks may well be making an indent into the national debt, they also encour- age consumers to follow suit, reducing consumption and purchasing power when struggling industries need it the most. Brazil, India and the Far East need to know the UK is a country of trade prowess in its own right, and is not simply caught up in a continent-wide maelstrom. The govern- ment must focus on breathing new life and confidence into manufacturing, logistics and retail industries so as to facilitate the flow of capital, and this may well require a certain amount of central investment. If this does happen, it is quite plausible that the UK could escape from the economic stagnation that many experts have predicted will last until 2014. A hackneyed cliché it may be, but it really is a matter of ensur- ing that the UK is able to turn a negative situation into a potential positive - having the confidence to put industry back at the forefront of the UK’s economic recovery. It’s more plea than prediction, but the outcome of the coming year depends on a bit of investment, shrewd decision-making and a sustained effort to develop the UK in emergent international trade. n
www.hellmann.net Storage Handling Distribution May 2012 19
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