Internet drives surge in transport start-ups

There has been a 22% rise transport and distribution small and medium sized companies in the UK since 2010 according to a study by Hampshire Trust Bank.

The research, conducted in partnership with the Centre for Economics and Business Research (CEBR), found only three sectors with higher growth (technical and professional, information and communication and business services (25%). The increase in SMEs across all sectors was 17% since 2010.

The bank attributed the growth in transport and distribution SMEs to the ‘final mile’ trend and the emergence of local distribution hubs around the country to fulfil the increasing consumer demand for 24 hour delivery.

More than half of transport and distribution SMEs feel optimistic about the long-term economic prospects of the industry, the report added.

Managing director of Asset Finance at Hampshire Trust Bank, Jon Maycock, said: “Our report identifies the critical importance transport and distribution SMEs play within the economy, particularly the many micro firms that are emerging in the UK.

“An increasing number of consumers are choosing to buy goods online and the market for delivery times is becoming ever more competitive.

“The government also has an important role to play to support transport and distribution SMEs. Investment in infrastructure will be vital to ensure this sector’s SME stay on track on the road to Brexit to ensure they can continue to contribute to the strong economic performance we are currently witnessing in the UK.”