R Finpro Pulse 09 Survey In Logisitcs 090319 Final


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R Finpro Pulse 09 Survey In Logisitcs 090319 Final

  1. 1. Main findings of Finpro 09 Pulse Survey Executive Summery in Logistic sector Finpro CSE January-February, 2009
  2. 2. 1. Background & investigated areas Background • Finpro CSE has contacted the relevant associations and major companies in • Construction, • Logistics & • Machinery sector • The geographical coverage was Central and Southeast Europe, as in following countries • Austria • Czech Republic, • Slovakia • Hungary • Slovenia • Croatia • Serbia • Romania • Bulgaria • Turkey • Around 100 managers were interviewed • The phone-based survey was conducted in February 2009. • Special note: the Survey is not based on representative primary research, it just gave some “feelings” & summarize some subjective thoughts from market players` point of views. © Finpro ry / 2009
  3. 3. 2. Main findings from Finpro Pulse 09 survey Pulse 09: Logistics 6,0 5,0 4,0 3,0 2,0 1,0 0,0 Performance Openness Notes: • Scaling at sector performance from 1 (deep recession) to 7 (healthy growth) • Scaling at sector openness from 1 (no opportunities to launch new technologies & business model) to 7 (lucrative business to come up with new technologies & business models) © Finpro ry / 2009
  4. 4. 3. Major comments from the region Country Sector performance Major problem in the sector Major opportunity in your sector Highly depended on production, There is very little to be The healthiest companies in the field if no production available, transported and thence have an advantage and within the absolutely no transportation nor overcapacity will mean on fierce year these companies will obtain a logistics. There is currently competition and even can lead to much stronger position. However the overcapacity and since there are unhealthy price competition in upcoming year will be challenging little investments, the year will order to survive be rather challenging Better situation cost vs. Prices, Austria Uncertainty in the companies. improving cost structure and product Business in the logistics industry Most of the expenses will be cut innovation. Lower cost, better will be hard and difficult down, no additional transportation services and higher quality of any other cost. Nobody knows what is going on and there is already a stop of investments going on Transportation will suffer the Highly qualified cheap workforce, Banks not supporting domestic most, other areas of logistics not central position, 1-day delivery investments, so no domestic capital. that much, but he expects 2009 time throughout the Europe On the other hand, opportunity for to be much worse than 2008 foreign investors. overall. Building of logistics Dependency of the sector, and the centres is delayed until further whole CZ industry, on the No opportunities in this sector in CZ Czech notice. automotive industry, which is not doing good Larger and multinational companies Republic Very bad, getting worse can gain market shares if they have Automotive industry and ceramics resources to invest to the market. The sector is affected by the that have been strong in CZ are Consolidation and acquisitions are financial downturn, but it varies pulling other sectors with them. expected. from sub sector to another. In general SME's are suffering. © Finpro ry / 2009
  5. 5. 3. Major comments from the region Country Sector performance Major problem in the sector Major opportunity in your sector Very bad start Decrease of the business Central geographical volume position, Slovakia Would be -30 or even -40 drop Improved infrastructure 10-15% decrease at major Uncertain future at electronics, to survive 2009 & players, Radical drops at machinery & automotive, while consolidation in 2010, SME's `long` stagnation at FMCG cluster-building at SME`s Decreasing order stock, Financial issues (late Evaluation of logistics main problems at automotive payments & cash flow companies opportunities, & electronic service problems) at service providers, market re-positioning with providers, FMCG would be while credit shortage at quick actions Hungary Ok. producers More complex offering to Too many players on the Closing production plants Clients market --> acquisitions; late Price pressure --> offer on payments --> cash-flow break-even points or going Cleaning the market & problems at SME`s under a bit to keep the Clients consolidation -20% drop at road transport & -10-15% at rail transport © Finpro ry / 2009
  6. 6. 3. Major comments from the region Country Sector performance Major problem in the Major opportunity in sector your sector To get cargos from Situation momentary. Future has several Dropping quantity of cargos different areas (incl. options, impossible to tell The Middle East) that Financial crisis impacts currently are using Hoping that this year is the same as last customers and in that way Slovenia different ports year but it's not going to be better for sure indirectly effects us No new opportunities. Doing the same as last year. -40% drop, financial problems at service less trade with Croatia, market consolidation, Croatia providers financial problems introduction of new business models If administration and legal issues Differences between EU Central position, but regarding foreign companies are not and domestic laws and first administrative Serbia simplified, it'll do much more harm then legislations, infrastructure issues must be taken the general crisis unable to support care of developing economy © Finpro ry / 2009
  7. 7. 3. Major comments from the region Country Sector performance Major problem in the Major opportunity in your sector sector In 2009, for the logistic sector, the request Delayed payments, non- The companies will externalize of the services will grow, but the volume of payments, longer terms of the logistical services to the goods will decline. payment specialized companies in order to be more efficient and to -20% drop forecasted Decreasing the turn over, reduce costs. Due to this the difficult to take loans from logistic companies will have Romania 30% drop estimated for 2009; price/km the banks, the clients try to more clients event the volumes went down (0.6- 0.7 Euro cent/km) delay the payments are reduce. compared to the same time period of 2007- 2008; Big delays in payments; Accession of the UE Funds difficulties in obtaining bank (Structural Funds) loans; Decrease in freight volumes because of Uncertain future Consolidation. Better offering to drop in foreign trade and construction customers and more efficient sector. Another problem is the uncertain Slowdown in related sectors management of the activities. future of the main steel producer in Bulgaria - trade and construction (about 20% of the total freight volume). More complex services and Logistics sector will be more cost efficient operations. Decreasing order stock due to slowdown in seriously affected if the industry and construction sectors. Some crisis in construction sector Bulgaria small companies will close down their becomes deeper. operations, which will give better opportunities to big players in long term. Decrease of production output. Decrease in Lower transportation volumes because of container traffic. difficulties in related sectors. Very fragmented market -> consolidation is © Finpro ry / 2009 expected.
  8. 8. 3. Major comments from the region Country Sector performance Major problem in the Major opportunity in your sector sector Past two month 25% down -it Quotas- EU export will With annual 15% growth will continue with negative be contracted heavily - performance in the past will trend - very difficult year not enough support attract foreign investors to from the government the sector-opportunity for 20-25 decrease - mergers ands acquisition M&A – consolidation - small Export-import companies will disappear unbalanced - not enough import goods Cost reduction - outsourcing Turkey 20-25 decrease - 2007-2008 compared to export - tendency - need for were golden years - increase in export warehouse -stockings transport Differentiated markets - Quotas in EU - Big Middle east offering logistic sector - harsh price competition © Finpro ry / 2009
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