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Stresses on the subcontractor network loom
Many T&L companies rely on subcontractors, particularly in the logistics sector, where such partners help to ensure complete coverage of widespread delivery areas. But some of these partners were hard hit by the recession, and 61 percent of T&L CEOs are now concerned that financially stressed suppliers could impede their own companies’ growth. They worry that their partner networks will be inadequate to meet an upturn in demand.
Difficulties in finding financing could hinder growth
Nearly half of all T&L CEOs also fear that inadequate financing could hinder their companies’ expansion. Fifty-two percent hope to fund that growth by borrowing from the banks, but 60 percent believe that access to bank financing will be more difficult after the economic recovery sets in.
"We have become very interested in the latest energy-saving planes with low-carbon emissions."
Mr KONG Dong
Chairman, Air China Ltd
Energy costs and climate change key issues
T&L CEOs are far more concerned than their peers about energy costs, a fact that reflects the energy-intensive nature of the sector. They are also more concerned about climate change – a valid worry, particularly if the onus shifts and T&L companies are required to compensate financially for all emissions generated during transit.
Many CEOs also optimistic about climate change
However, 61 percent of T&L companies already have a climate-change strategy in place, and very few of them have curtailed their investments in this area as a result of the recession. Seventy-six percent of T&L CEOs also plan to launch climate-change initiatives in the coming 12 months, and although 43 percent believe that the ‘green’ agenda will slow down their sector’s growth, many T&L CEOs see a silver lining. Sixty-six percent anticipate reaping a reputational advantage from their efforts to combat climate change, while 42 percent expect to develop new products or services and 34 percent to benefit from government incentives to go ‘green’.
Related material
Thought leadership |
 Transportation & Logistics 2030 - Volume 1
How will supply chains evolve in an energy-constrained, low-carbon world?
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 Intersections
Global transportation and logistics M&A analysis: Q3 2009.
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