New Zealand’s $6 billion road transport sector is undergoing significant change driven by new technology and increasing compliance requirements says new research by ANZ and UDC Finance.
The annual ANZ privately owned business barometer survey of 106 road transport businesses found an industry that was upbeat about the future.
The industry led the way using new technology and recognised the need for participants to improve their business skills constantly, and also sharpen their focus on profit.
“The road transport sector plays a vital role in the New Zealand economy, moving around 50 tonnes of freight for every person in New Zealand each year,” says UDC Finance chief executive officer Wayne Percival.
The barometer showed 29% of road transport respondents say they will invest in training and development, compared with 51% of all respondents in the survey.
Almost 20% of road transport respondents felt that being proactive about environmental considerations was good for their business.
The barometer says that 26% of the transport respondents had a turnover under $250,000.
It reported that 41% of the transport respondents had a turnover between $250,000 and $2 million, and 33% had a turnover of more than $2 million.
“Continuing growth in Auckland and Christchurch, the growth of supermarkets and positive economic indicators, such as New Zealand’s exposure to Asian growth, are keeping levels of confidence high,” says Percival.
The sector is not without its issues according to the barometer.
“Chief among these is the need to bring a new generation of young people into the industry, and the need for smaller operators and owner drivers to improve business management skills,” says Percival.
In an industry where customers focus on price, it’s important to demonstrate the value that they deliver to ensure pricing across the sector is sustainable,” he says.
