There are several issues facing continental and international haulage firms right now. The migrant situation in Calais has already had a lot of negative repercussions on UK based haulage firms. This only adds to the myriad of EU legislations that face any truck or lorry company wishing to work abroad.
It has got to the point now that some haulage companies are considering pulling out of Europe all together. There are pros and cons to this decision, and it is those ramifications that we’re going to be looking at today.
Pro – Cut costs
You don’t need us to tell you that driving to and from Europe isn’t cheap. Looking at petrol alone, you are looking at a huge outlay everyday to transport goods over the channel and into the EU. Furthermore, such long range trucking requires high end vehicles, and a large fleet of them to make it financially viable.
All of these factors mean that anything affecting the day to day flow of the business is going to impact heavily on the monthly bottom line. Pulling out of Europe opens the door to lower fuel costs, and a chance to downsize a bloated fleet. That said, there is one impact hard to avoid when removing yourself from Europe. . .
Con – Drop In Revenue
Downsizing, in most cases, will lead to a drop in revenue in the short term, if not longer. If most of your business comes from European haulage, the impact will be even worse. You’ll be relying on UK haulage to make up the difference, and if your foothold isn’t strong within British borders, you won’t be able to bounce back immediately.
It therefore becomes a balancing act – is the loss of of EU revenue something you can ultimately come back and thrive from, or is it too integral to business? If it is too much to take, then it may be worth sticking with EU haulage, and trying to increase homeland haulage ahead of reconsidering at a later date. But if you are desperate to get out of Europe, there is a way to recover revenue long term.
Pro – “Big fish in small pond”
Let’s say you want to pull out of Europe, but don’t wish to downsize too much. You also have a fairly good standing in the UK already. There is a chance, should you get your ducks in a row, that you could use your size and reputation to become a big business in UK-only haulage.
The UK is still a heavy industrial country, meaning there are plenty of haulage contracts up for grabs to the right company. If you can prove that you are among the elite UK haulage firms, free of the distractions of the EU, there is every chance you could actually end up increasing your revenue long term.
Con – Lower brand status
One last point to consider – put yourself in the shoes of a business looking to find a new haulage partner. What sounds better:
- A to Z UK Haulage
- A to Z International Haulage
To someone who isn’t aware of your quality within the UK, a customer may be tempted by what seems, on paper, to be a bigger company, even if they have no intention of exporting abroad at all. The decision to drop out of EU haulage can make your brand seem smaller on paper, and you’ll need a very good website and customer feedback record to prove otherwise.
