Impact of the economic downturn
Over the past years, the T&L industry has been profiting significantly from favorable economic conditions and the demand for raw materials, capital and consumer products. In 2008, though, the industry was suddenly faced with some of the most difficult market conditions in history. A tightening global credit crunch and an economic recession that began in the U.S., but quickly spread throughout the globe, impacted many companies in nearly every aspect of their business. Changes in consumer buying patterns have led to smaller transport volumes, and shifts to less expensive delivery modes, with a substantial impact on the express business. The volatile oil price coupled with a stronger focus on emission reduction has increased pressure on transportation companies, especially airlines, leading to a record figure in airline insolvencies. In addition, the economic downturn places more fundamental challenges on the T&L industry: consumer patterns and a general cutback of demand inevitably leads to a lower level of goods flows.
How PwC can help you
PwC has strong credentials in helping clients with cost reduction through performance improvement, financial and operational effectiveness, treasury and cash management. Our global network of transportation & logistics industry experts works with our teams in these areas to support clients in finding the right solutions which will help them through the challenging short term financial environment and build towards sustainable long term business practices. Our experienced transaction services specialists can help clients re-evaluate acquisitions strategies and assess opportunities for divesting non-core divisions to streamline operations.