A new report launched today (April 30th, 2019) by Asset Alliance Group reveals a majority of operators would consider quitting work for city centre-based customers should new urban environmental legislation prove too costly.
Results from the Industry Monitor 2019 – a survey of managing directors, owners and senior managers of road transport operators across the UK – reveal 57% will consider moving on from customers if clean air zones or low emissions zones mean that serving them will no longer be cost-effective.
Just 23% said they would remain with clients regardless of the cost of clean air compliance. The remaining 20% are not yet sure how they will react to cost implications.
In total, 60% of those surveyed said the purchase of clean air compliant vehicles is already having a detrimental effect on the cost of them doing business, and 59% feel local authorities have not been effective in communicating their plans.
Asset Alliance Group CEO Willie Paterson said: “The road transport sector works with low margins, and the introduction of more stringent environmental legislation is tough. The results of our latest industry monitor demonstrate just how tough.
“The fact that more than half of fleets may walk away from existing customers because of rising costs puts the challenges we are facing into stark reality. Walking away from custom isn’t what anyone in business wants to do.”
He adds: “Our focus continues to be supporting operators to manage their fleets and their balance sheets to ensure they remain sustainable and open to opportunities of scale.”
London’s ultra-low emission zone came into force earlier this month, and Clean Air Zones in Birmingham and Leeds start in January 2020.
Asset Alliance Group’s 20-page Industry Monitor report, launched at the CV Show and available from their stand (Hall 5, D90), includes more results from their exclusive survey of more than 200 fleet decision makers, conducted in association with Commercial Motor and Motor Transport magazines.
It also includes a four-page guide to the alternative fuels on offer from all seven major truck manufacturers.
To download a free copy of the report visit www.assetalliancegroup.co.uk/industrymonitor2019.
ENDS
Note to editors:
Asset Alliance Group has redefined the way companies acquire commercial vehicles and occupies a unique position in the market, as it uses its own funds and significant buying power to supply multi-brand vehicles on any combination of contract hire, operating lease, finance lease or hire purchase. This flexibility, combined with a transparent and consultative approach, helps customers drive maximum efficiency from their fleets.
Asset Alliance Group also stands out for maintaining full control of residual risk through its retail arm, which protects customers from overly strict return conditions commonplace in the industry. Its modern workshop facilities also keep end-of-life costs to a minimum and provide the opportunity to refurbish vehicles in-house for an additional life in service.
The Group is headquartered in Wolverhampton and was founded in 2010 by Willie Paterson, former Director of Commercial Finance at Alliance & Leicester plc.
For further information, please contact:
Lucy Pitcher or Rebecca Gleave at Garnett Keeler PR
Tel: 020 8647 4467
Email: lucy.pitcher@garnettkeeler.com or rebecca.gleave@garnettkeeler.com
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