August Traditionally
a Quiet month.
August traditionally a
quiet month, was absolutely horrendous. Although we had two drivers
on holiday during the month, both on contract runs, their runs
were easily covered. What we didn’t for see was the dramatic
increase in business during August. Companies who during June
and July we were delivering samples to the trade shows, and the
private viewings for mail order companies and department stores,
all picked up increased business which resulted in the run up
to Christmas starting early. With the increased practice of department
stores offering privileged customers the chance to preview new
season lines, it looks as though competition in the retail sector
is going to be fierce. Manufacturers who ran stocks down, the
race is on to restock, which means a lot of companies being dependent
on the lending criteria of the banks to survive. Companies with
cash reserves are now in a much stronger position than those who
were trading on credit.
European runs virtually doubled this month, with Germany still
contributing the largest share. Although we expected this increase
in mid September, to keep up with the increased demand it has
been necessary for all staff to be out on the road, resulting
in telephones not being answered quickly, and some customers not
being able to get through at all, resulting in more email request
for loads to be delivered. RFT Express apologises for this, and
trusts our customers were not unduly inconvenienced. Three new
vehicles were ordered for the expected increase and should be
in service over the next few weeks.
The sudden upswing in business with our customers may not be replicated
nationwide, but it does lend a little bit more weight to the theory
that we may be in for a double headed recession, if we come out
of recession too quickly. I can see some companies who ran stock
levels too low, being unable refinance stock levels, resulting
in more closures over the next few months. One BBC reporter quoted
the financial institutions as operating the 3-6-3 policy. Borrow
at 3%, lend at 6%, on the golf course by 3.00 p.m.
The next 4 to 6 weeks should give a clearer picture.
Vic
farron Staff writer RFT Express
