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SMEs Predicting Low Levels of Growth Over 6 Months

SMEs Predicting Low Levels of Growth Over 6 Months

Research has revealed that SMEs within the Transport and Distribution sector are predicting low levels of growth over the next six months. It is thought that 2 out on 10 SMEs are anticipating a growth. 2% of the companies are expecting significant expansion. This data has been taken from research carried out by Hitachi Capital Business Finance. It is thought that this sector is around half as likely to experience growth as other sectors. The other sectors that the Transport and distribution area has been compared to include Financial Services, which are expecting 56% growth, manufacturing is expecting a 49% expansion.

The research has also revealed that the Transport and Distribution sector is also four times more likely to expected scaling-back attempts in comparison to the Financial Services sector. 16% of the companies in the Transport sector are expecting to have to scale back in comparison to just 4% of the Financial sector.

The main cause for concern for the Transport and Distribution sector is that it relies heavily on overseas markets in order to expand. However, since Britain’s decision to leave the European Union, the unsure nature of the future can be alarming for companies that are dependent of overseas for success. 30% of companies in this sector are looking to expand overseas, and it would appear that the EU, excluding the UK is seen as the most attractive market. 61% of the Transport and Distribution sector are positive that leaving the EU will bring benefits to their sector. These benefits include less red tape, and the fact that the UK government would be required to do more in order to support British Businesses. Other reasons to stay positive are that consumers would be more accepting of the price increase because of Brexit, and there will be operational improvements in the Transport and Distribution sectors.

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