Confidence in the logistics sector has fallen to its second lowest level on record, only slightly above that seen during the first COVID-19 lockdown in 2020, a new industry report has found. According to the Barclays-BDO UK Logistics Confidence Index 2023, this year’s score is 47.3, down from 50.4 in 2022. In 2020, the confidence index stood at 47.1. Any index figure below 50 indicates overall pessimism in the logistics sector – a sector that is integral to the functioning of our society at many levels and regarded as a useful barometer of the state of the wider economy. The latest figure is in contrast to the marked optimism seen in 2021, which produced an index reading of 62.5, as the sector bounced back from the effects of the pandemic – a time of increased levels of home delivery and higher rates for global logistics services. The latest study from Barclays Corporate Banking and accountancy and business advisory firm, BDO LLP, found that three quarters of operators (75%) feel business conditions are more difficult now than a year ago, with levels of demand the number one concern for 71% of logistics businesses. Interestingly, staff shortages and increased labour costs – a perennial problem for the sector – are becoming less of a concern for businesses. Less than half of logistics leaders see it as a major challenge in the next 12 months. Challenges in recruiting warehousing staff and LCV drivers have also eased as volumes fall. Jason Whitworth, corporate finance partner at BDO LLP, said: “Given the economic environment and market dynamics, it’s not surprising that the industry is cautious about the current trading environment, with real concern over volume of activity across certain sub-markets. As always, the logistics industry is feeling the effects of a tightening economic climate more than most, as inflation and interest rate rises continue to have an impact on consumer behaviour. “Despite the lower overall confidence, there are still plenty of opportunities for operators, including greater collaboration with customers and other providers in the sector in areas such as shared-user warehousing, shared transport space, as well as electric vehicle charging or alternative fuel infrastructure.” The report also showed that nearly nine in 10 respondents are investing in environmental, social and governance (ESG) projects. While the majority are driven by playing their part to combat climate change, there is clear acknowledgement of the growing commercial importance of being able to demonstrate ESG credentials in winning new business. There is a willingness to consider alternative fuel types, with electric solutions a top priority for investment, albeit jointly with diesel, suggesting the alternatives are not yet viable in many cases. Whitworth added: “Investment in technology and ESG measures is a positive step to pursuing both cost savings and gaining competitive advantage. In addition, due to a need by many operators to boost volumes through new service offerings or breaking into new sectors, appetite for M&A activity remains strong.” Looking at growth opportunities in the next 12 months, the most popular strategy is cost control and efficiency. According to the research, this is also one of the main drivers of investment in technology. More than half of businesses see this as an opportunity and, as in previous years, most will spend on upgrades to and replacement of existing technology. With the rise in cybercrime across all industries, cyber security is the second highest priority. James Lean, Industry Director for Manufacturing, Transport & Logistics at Barclays Corporate Banking, said: “It is consistent with other global indexes to see the UK logistics sector feeling at a low level of confidence following the realigning of supply chain capacity. “However, as our report shows, despite cooler demand from manufacturers and wholesalers, this resilient sector continues to look to the future, adapting their business models through digital strategies, investing in fixed assets and importantly their people.”

Whitby Seafoods has been given five days by the Competition and Markets Authority to demonstrate that its purchase of Kilhorne Bay Seafoods won’t lead to higher prices and lower quality products. Whitby Seafoods currently holds 90% of the market to supply breaded scampi to foodservice customers such as pubs, restaurants, and fish and chip shops by some distance. It has a market share close to 90%, and Kilhorne Bay Seafoods, while significantly smaller than Whitby Seafoods, is the second-largest supplier. Whitby Seafoods agreed to buy Kilhorne Bay Seafoods in May this year, and voluntarily notified the deal to the Competition and Markets Authority, which launched a merger review into the deal in August. An initial Phase 1 investigation conducted by the CMA has found that Whitby Seafoods already holds a very strong market position in the supply of breaded scampi to foodservice customers. Following the deal, Whitby Seafoods would face even less competition from other scampi suppliers. The CMA’s investigation also found that Whitby Seafoods faces limited competition from potential market entrants and suppliers of other types of breaded seafood. The loss of competition brought about by the deal could result in foodservice customers having to pay higher prices – which could ultimately lead to higher prices for customers in venues such as pubs, restaurants, and fish and chip shops – as well as reduced product quality. The CMA will refer the deal for an in-depth Phase 2 investigation unless Whitby and Kilhorne Bay offer remedies which fully resolve these concerns. They now have five working days to submit proposals. Colin Raftery, Senior Director of Mergers at the CMA, said: “Scampi is a popular choice when eating out in the UK, with over 20 million servings sold to restaurant, café, and pub goers every year. These venues are already facing significant cost pressures, and it’s critical that we don’t allow a loss of competition to make things worse.

“Kilhorne Bay is a relatively small player, but Whitby Seafoods already faces only very limited competition when competing for foodservice customers – so the deal would leave customers facing the risk of higher prices and lower quality products.”

Rather than delivering HS2 Phase 2 new line between Birmingham and Manchester Prime Minister Rushi Sunak has promised to enhance the transport infrastructure across the whole country. Communities in towns, cities and rural areas will see improved transport infrastructure far sooner through £19.8 billion reinvested in the North, including:

• £2 billion for a new station at Bradford and a new connection to Manchester;
• £2.5 billion to deliver a new mass transit system in West Yorkshire;
• £3 billion for upgraded and electrified lines between Manchester and Sheffield, Sheffield and Leeds, Sheffield and Hull, and Hull-Leeds.
• Nearly £4 billion more funding for local transport in the North’s six city regions.
• A new £2.5 billion fund for local transport across all areas in the North outside the six city regions – smaller cities, counties, towns and countryside.
• A new £3.3 billion fund for road resurfacing.
• Landmark investments in roads, reopened train lines and new stations

Cornerstone of the new plans is Network North, which it’s claimed will drive better connectivity across the North and Midlands with faster journey times, increased capacity and more frequent, reliable services across rail, buses and roads. £36 billion will be invested in hundreds of transport projects across the country – with every region set to receive the same or more transport investment on an unprecedented scale as a result of the change.   A further £12 billion on top of this figure will be set aside for faster connectivity between Liverpool and Manchester. This represents a fundamental shift in investment towards the people’s transport priorities, consistent with the Prime Minister’s pledge to grow the economy while ensuring value for money and demonstrating responsibility with taxpayers’ money. More than four million people in cities in the North cannot currently reach their city centre by public transport within half an hour, which is detrimental to productivity and economic growth. And rail accounts for just 8 per cent of distances travelled and 2 per cent of all journeys. Yet the HS2 project currently accounts for over one-third of all Government’s transport investments, preventing the Government from spending on people’s genuine priorities and doing little to improve the journeys that people make the most.  

Sheffield-headquartered healthcare operations technology provider, Agilio Software, has enhanced its patient engagement software offering with the acquisition of Leeds-based iatro. Since its launch in 2019, iatro has grown into a go-to solution for primary care organisations by providing simple, patient-facing digital solutions for NHS organisations including Integrated Care Boards, Primary Care Networks and GP practices. iatro will benefit from Agilio’s footprint of over 4,000 GP practices, allowing them to rapidly provide their solutions to this extended community, whilst complementing the extensive offering of Agilio Software. Thomas Porteus, founder of iatro, said: “We’re delighted to be joining Agilio to accelerate our ambitions in supporting practices across the country and make a real difference for organisations and professionals delivering primary care. “Patient engagement is an incredibly important part of patient care, and thanks to our technology, practices can benefit from a simple solution enabling them to communicate easily with their patients and provide them with clear, easily accessible information. “The acquisition means that iatro can benefit from Agilio’s leading healthcare operations technology expertise, allowing us to further invest in the rapid expansion of our patient engagement technology.” Neil Laycock, CEO of Agilio Software, said: “I am delighted to be announcing another cutting-edge organisation joining our ever-growing roster of healthcare operations solutions, and iatro will be a great addition to our Agilio family. “As a group, we are focused on expanding our patient engagement offering to provide our clients with a one-stop digital solution for all of their healthcare operational needs.” David Taylor, MD of Agilio Primary Care division, said: “We’re excited to be welcoming Thomas and the iatro team to our Primary Care division. The team brings vast experience in patient-facing and patient-engagement digital solutions that will greatly benefit the existing offering of Agilio Primary Care. “We are dedicated to delivering high-quality solutions that will make the everyday lives of healthcare professionals easier without compromising safety, and one of the challenges primary care faces is how to effectively digitise communication with patients.”

Yorkshire Water is predicting a rise in water bills to cover the cost of plans to Ofwat as part of the Price Review 24 process,. The firm has outlined plans to invest £7.8bn across the region between 2025 and 2030 as a start on its utility’s largest environmental investment in the region. However, improvements come at a cost. If approved, plans would see average customer bills rise from £36.51 per month next year to £43.23 per month the year after, with small increases each year thereafter. Yorkshire Water is enhancing its support for customers who may be struggling financially and will be increasing its contributions to help those most in need. All low-income households will be able to access financial support from Yorkshire Water and the utility is committed to increasing its support for customers by 25%. Its plan includes:

• £3.1bn investment will drive efforts to deliver secure, safe clean water supplies with improved resilience of its network of pipes and a focus on future water resource needs.
• £4.3bn will support plans for a healthy, natural environment, with a focus on protecting and improving river and coastal water quality, to create a cleaner, safer water environment.
• The plan outlines investment in customer service and an increase in support available to customers with an investment of £446m.
• This includes financial support for half a million (500,000) customers, direct help with water bills for 280,000 customers and £250m worth of financial support across the five years.
• The plan will support employment for more than 10,000 people across Yorkshire.

Nicola Shaw, Chief Executive of Yorkshire Water, said: “My focus since joining Yorkshire Water has been improving our performance and delivering the best value and service for customers. Stakeholders and customers have made it clear they want more from us, and we’ve listened to what they’ve had to say. We want to play our part in making sure our wonderful county thrives by focusing our investment in the areas that matter most to our customers. “This submission marks our largest ever environmental investment and illustrates our commitment to deliver what our customers expect. The programme will protect and improve the quality of water in rivers and at coasts, leading to cleaner, safer water environments that support recreation and biodiversity across the region. “While this is what we hope to do in the next five years in terms of investment, it does not stand alone. We are working internally to ensure all our colleagues are engaged and pulling in the right direction to deliver this ambitious plan. “The next steps in this process are for Ofwat to provide us with draft determinations in the early summer 2024 and then final determinations before the end of 2024 before we start the new period in April 2025.” Delivering these plans will come at a cost but the company has sought to balance investment in water systems with ensuring bills are affordable for our customers. As well as meeting customer expectations, the submission includes investment to meet the regulatory requirements of the Water Industry National Environment Programme priorities, including delivering the Storm Overflow Discharge Reduction Plan, as well as improving and protecting river water quality and the Water Resource Management Plan. The submission outlines £3.1bn investment to deliver secure, safe clean water supplies including:

• £2.4bn investment to improve supply resilience through increased mains replacement and refurbishment of critical storage and treatment assets
• £461m to secure future water resources and upgrade water meters to smart meters to give greater and more timely information on usage
• £95m to maintain safe, clean water supplies

• £83m to enhance collaboration with landowners and stakeholders to improve land management including sites of special scientific interest (SSSI) for the benefit of the environment and improve raw water quality

Yorkshire Water’s also submitted to Ofwat its largest ever environmental investment plans, with a £4.3bn investment in a healthy, natural environment, including:

• £1.9bn to reduce the use of storm overflows and to protect the environment
• £1.8bn to maintain and improve wastewater collection and treatment, including monitoring systems to improve Yorkshire Water’s impact on the natural environment, including reducing Phosphorus, microplastics and unwanted chemicals entering watercourses, and investigating where environmental investments will be required in the future.
• £347m to ensure Yorkshire Water’s bioresources facilities continue to deliver and have sufficient capacity for the future

• £155m to reduce air emissions and ensuring Yorkshire Water’s infrastructure meets the need of a growing population and new developments
• £51m will be invested in measures to reduce greenhouse gas emissions
• £26m allocated to continue work in Hull and the East Riding to tackle flooding issues in the area through Living With Water – a partnership with the Environment Agency, Hull City Council, East Riding of Yorkshire Council and the University of Hull.