A report launched 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.
To download a free copy of the report visit www.assetalliancegroup. co.uk/industrymonitor2019