Our way of life has been turned upside-down in recent weeks. The change is taking a considerable toll on businesses – even with the financial help being released by The Bank of England and the Treasury. For the majority, this is a period of stasis at the very best.
But as the world adjusts to this new normality, not all sectors are faring the same. In fact, some are experiencing enormous growth. E-commerce deliveries which were growing fast prior to the pandemic are now in even greater demand as the ‘stay at home’ instructions take effect. And for many third-party logistics providers, especially those in the domestic grocery, consumer and general haulage sectors, this is a time of record demand, which is expected to be maintained throughout the Covid-19 lockdown.
The evidence of this trend is being played out in the jobs market with the logistics and IT sectors seeing the biggest demand for staff, according to research from Totaljobs and the British Chambers of Commerce. Warehousing and van or lorry driving in particular saw the greatest increase in advertised jobs in March.
Investing in staff is only one half of the equation of course – investing in fleet and equipment is also a necessity to make the most of the soaring demand, be that a new truck, a cold store to allow you to mop up the demand for food and medicine transportation, or new material handling equipment to help you maximise capacity and efficiency in your warehouse as demand for space spikes.
But at such a time of flux, and given the level of challenge the economy now faces and is likely to face, spending out vast sums is not going to be a realistic course of action; most businesses will be looking to maximise their liquidity headroom to allow for any potential slowdown in trading and delays in receipts.
Fortunately, there are a raft of finance options available which will allow businesses to access the vehicles and equipment they need now to scale up what they can offer their clients, while still maintaining cash reserves to protect their businesses for the longer term.
Dawsongroup Finance is here to help. Our lease product for example will provide you with use of a truck to allow you to meet demand during this busy period, in exchange for small monthly payments. You can then return the asset once things revert to normal as the Covid-19 measures are lifted.
And we can offer refinance transitions, which will allow you to raise money against an unencumbered asset which you can invest in another area of your business.
Right now, logistics providers have a vital role to play in keeping the UK on its feet. Those that step up and fulfil that role successfully will not only win business now, but also the goodwill and trust of clients which will serve them long after this crisis is over.
We want to help your business seize the opportunity amid the challenges, and provide the vital services this country now needs in spades as the Coronavirus crisis plays out. To find out more, get in touch with us by emailing info@dgfinance.co.uk.