Raport Confidence Index 2024_english veriosn

LOGISTICS AND SUPPLY CHAIN CONFIDENCE INDEX 2024

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2.6 Anticipated Changes in Profitability

Optimism regarding turnover growth is, in most cases, followed by less positive forecasts about business profitability. This is a trend continuing in every edition of the report, although this year the difference is minimal. Whilst 52% of respondents forecast an increase in turnover, it is positive to see that 47% are anticipating higher levels of profitability (up from 36% in the last edition of the report). A further 20% of respondents said they do not expect any change in profitability over the next 12 months, whilst 33% claimed their profits may fall (34% in the previous year).

Manufacturers and retailers are more positive than logistics operators – 56% expect an increase in profitability, whereas 38% of logistics operators anticipate a growth in profits. The “no change” category is predicted by roughly similar percentages in both groups – 21% of logistics operators and 20% of manufacturers and retailers. 42% of logistics operators expect a decrease in their profits, which is not unexpected given current trading conditions, while 24% of manufacturers and retailers anticipate a fall in profits.

Figure 9. Change in profit over the next 12 months

Increase

0%

10%+

8 - 10%

4%

16%

5 - 8%

27%

2 - 5%

No change

21%

-2 to +2%

Decrease

12%

2 - 5%

8%

5 - 8%

8%

8 - 10%

4%

10%+

0%

5%

10%

15%

20%

25%

30% 35%

Optimism regarding turnover growth is, in most cases, followed by less positive forecasts about business profitability.