Cash Crunch in the Transport & Storage World
Picture a truck that’s been running on fumes for months. That’s the reality for a surprising chunk of transport and storage companies. According to the latest snapshot from the Office for National Statistics, roughly 37 % of firms in this sector say they have zero cash reserves. That’s the most pessimistic outlook among all industries.
How Bad Is It?
- Zero cash reserves: 36.8 % of transport & storage businesses report they’re out of money.
- Less than a month in the bank: an additional 12.4 % cannot even survive the next 30 days.
- Two-thirds less than the past: only 12.9 % still have more than six months of funds, down sharply from the 25.4 % cushion that existed in June 2020.
Comparison With Other Sectors
In contrast, companies in the manufacturing and retail arenas roll their sleeves up a bit better:
- Manufacturing: 10.9 % have no reserves, 5.1 % dwell in the “less than a month” zone, while 29.8 % keep over six months of cash.
- Retail: 16.4 % are cash‑starved, 6.3 % in the “less than a month” range, and 27.7 % boast more than six months.
- Construction: 25.5 % are cash‑poor, a number that still lags behind transport & storage.
- Information & Communication: 7.2 % hit the 0‑cash mark, 1.8 % at under a month, but a remarkable 46.5 % hold more than six months.
What This Means for Businesses
The numbers paint a stark picture: transport & storage companies that collaborate with financially healthier retailers will have the best shot at surviving. The ones with weaker partners—especially those that ride the demand roller‑coaster of retail—are the most at risk.
Bottom line? If you’re in logistics, parcels, haulage or warehousing, it’s high time to tighten belts, renegotiate credit terms, and maybe even think twice about that dubious inventory purchase you’ve been “insisting on” through the pandemic.
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