Europe's vehicle logistics sector is robust, adaptable and poised for recovery in 2010, yet banks skeptical about prospects for the wider automotive industry continue to deny it access to much-needed financing, according to a major new report. "This analysis, the most comprehensive ever conducted of the outbound vehicle logistics sector, makes an overwhelming case for the financial solidity and future prospects of this business," says Costantino Baldissara, president of the Association of European Vehicle Logistics.
"Our sector has had a tough time since the economic crisis hit home in the fourth quarter of 2008," says Baldissara. "Many companies have had to cut jobs and capacity to survive. It is still a struggle but this is a sector that resists pressure well and reacts nimbly to changing circumstances. We expect to see recovery this year and steady growth in the years ahead."
He adds, however, that the crisis also has taken a toll of the sector's financial strength at exactly the time that it needs to invest for the future and to replace existing assets. "Yet when we approach the banks we find them reluctant even to assess our creditworthiness," he says. "This is partly because, at a time of tight credit, they are wary of industries, like automotive, that have been hit hard by the crisis, and partly because until now there has been a lack of comprehensive, reliable information on the sector."
