Business, Freight News

Industry investment plunges in Q3

[ January 11, 2022   //   ]

Business investment in the logistics industry collapsed suddenly in the third quarter of 2021 as the sector continued to wrestle with the pandemic, says business tax relief specialist Catax.
It said that the latest ONS data indicated that the transportation and storage sector, which includes rail freight, air cargo, haulage, logistics and warehousing businesses, as well as passenger air transport, saw net business investment decline 58.5% from £2.5bn in the second quarter to £1bn in the third quarter.
Net investment also more than halved (-59.3%) on an annual basis, falling from £2.5bn in Q3 2020, and it still sits well below half of the record high for the logistics sector set in Q4 2010, when it peaked at £6.8bn.
The sector has fared much worse than the UK as a whole, as overall business investment fell by only 2.5% in the third quarter of 2021.
Catax chief executive Mark Tighe commented: “The challenges of high demand, labour shortages and Covid disruption continue to hamper the logistics sector. Business investment has plummeted as a result, as providers continue to try to weather the storm by trying to put any asset wealth to good use.”