According to 9 out of 10 logistics companies, their turnover will increase or remain unchanged in the next 12 months, 60% of companies share this opinion in trade and production, according to CBRE’s “Confidence Index” report. In terms of business conditions in the coming months, an improvement is assumed by 28% of logistics operators, while 36% of companies expect an improvement in trade and production.
“Logistics is one of those market sectors that not only did not lose, but even gained during the pandemic. Therefore, logistics operators are more confident about the market situation and their level of optimism, despite the challenges related to the global situation, is at a similar level as a year ago. However, it is clear that entrepreneurs hope that the coming months will be better. They especially expect an increase in turnover. They count on it much more than on improving the conditions for running a business “- said Agata Czarnecka, director of the research and analysis department at CBRE.
The “Confidence Index” report by CBRE shows that, in the opinion of entrepreneurs from the logistics, production and trade sectors, the current economic situation is more difficult than in the previous year. 78% of companies say so. Every third company expects an improvement in the economic environment in the coming months. Almost half (44%) anticipate some external difficulties in running a business efficiently, and 24% expect business conditions to remain at the same level as in 2020.
When asked about the expected changes in turnover for next year, more than half of entrepreneurs (52%) forecast growth. Every fourth one assumes that the turnover will not change, the same percentage expects a slight decrease.
“Optimism about the growth in turnover is followed by slightly less positive forecasts of business profitability. This is a trend that repeats itself in our every report. While more than half of the companies forecast an increase in turnover, 44% forecast higher profitability levels. Another 27% said they did not.” expects a change in profitability in the next 12 months, and 29% say that their profits may fall “- added Czarnecka.
Almost 7 out of 10 logistics operators say the current market conditions are more difficult than 12 months ago. Additionally, 28% of companies hope that the conditions for doing business will be more favorable next year. It turns out, however, that little faith in the economic environment does not go hand in hand with a low assessment of running your own business. Almost all, 92% of logistics companies believe that their turnover will increase or remain unchanged in the coming months. Half of the logistics companies expect higher profits in the coming year. Every third entrepreneur anticipates a decline.
Already 88% of entrepreneurs from the trade and production sectors believe that the current market conditions are more difficult than 12 months ago. Manufacturing and trade companies are more optimistic than logisticians – 36% of them believe that the conditions for doing business will be more favorable. (in logistics 28%). As for turnover, 6 out of 10 trade and production companies expect an increase in the coming months, while two-fifths expect a drop. 38% of companies expect higher profits, every fourth forecast a decline, and 37% do not expect no changes.
