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Often considered a bellwether of economic activity, the UK companies that transport goods to the nation’s customers say they are more optimistic about their future than this time last year, with the Index increased to 56.7 from 53.0 in H2 2016. The potential for value added services, greater collaboration through mergers and acquisitions (M&A) and the new opportunities presented by technology, were all reasons for operators to feel optimistic.
A fiercely competitive environment hasn’t dampened the sector’s expansion spirit, with four in ten logistics operators saying they are likely to make an acquisition over the next 12 months. As it becomes more difficult for operators to obtain new contracts, mergers and acquisitions create an opportunity to gain new business. Expanding service offerings is the main reason why M&A activity has been more popular in the past 12 months. Not only do new partnerships provide new expertise and services, but also wider geographical opportunities.
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