The Analysis News & Opinions
Expectation set for new business representative
A major industry group has called on the newly-appointed Small Business Crown Representative to make late payment a key focus. The Forum of Private Business (FPB) said
that Martin Traynor should take up the post with a “very clear expectation” of the need for change. Ian Cass, managing director of the
FPB, said: ‘Having someone nominated to champion improved access to government contracts within the heart of government is good news, but he will have to walk the talk if we are to see real changes. “Firstly, we will be looking for government
to blacklist any company, whatever its size, with payment terms in excess of 60 days, and who are not signed up to the Prompt Payment Code. “And he must drive through a changed mentality within government whereby those who actually do the job should be contracted, not umbrella corporations like Carillion, who take the profit, and subcontract to small businesses at ever-decreasing margins. In taking up the position, Mr Traynor said: “I am delighted to take on the role of
Small Business Crown Representative and to build on the work of my predecessor, Emma Jones. “The government buys a wide range of
goods and services from businesses right across the country. “This represents a huge opportunity for
many of the UK’s small businesses and I will work with colleagues from across the
government to tackle any barriers to our procurement processes.” As the Small Business Crown
Representative, Mr Traynor will lead on the overall relationship between the government and small businesses, advise ministers on the government’s engagement with them, and identify any barriers they face when working with the government.
Cautious outlook for car finance
The used-car market is set to become an even more challenging environment in 2019, but there are ways for dealers to sustain sales and the bottom-line, according to a senior industry figure. Karl Werner, deputy chief executive of
MotoNovo Finance, said: “Looking at current market conditions; the emergence of market disruptors and what now looks set to be ongoing political jousting, dealers should prepare for what looks set to be an even more challenging market. In challenges there are threats – but also opportunities – and we believe dealers can take advantage of these in the year ahead.” In 2018, new-car sales declined to pre-2008 levels while in unit terms, used-car sales in
March 2019
the third quarter reflected a year-on-year decline in volumes of 2.4%. Used-vehicle finance grew last year, and figures from the FLA show the number of used cars sold on dealer finance in the 12 months to November rising 7% to 1,454,568 while their value surged 13% to £17.5bn. He said that the key concern from
the trade was that margins could become squeezed as a result of shortages of quality stock, high stock prices, flattening retail prices, and competition fuelled by the rise in digital channels. As well as the competitive issues, Mr
Werner encouraged dealers to be prepared for the continuing impact of broader macro- economic factors affecting the market,
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including emissions regulations continuing to effect product supply, the emergence of Ultra Low Emission Zones impacting older used stock and residual-value setting, the outcome of the FCA review of motor finance, the continuing impact of Brexit on consumer sentiment and the economy, and increasing competition for car sales and customer data. He added: “Gaining sales and profit in the
year ahead will become increasingly demanding and I encourage dealers to rise to the challenge and change the way they operate. Given the pace of change and resources available, dealers should look at who they can collaborate with to maximise their joint skills and meet the changing demands of today’s car buyers.”
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