August Traditionally a Quiet Month

August traditionally a quiet month, was absolutely horrendous. Although we had two drivers on holiday during the month, both on contract runs, there runs were easily covered. What we didn’t for see was the dramatic increase in business during August. Companies who during June and July we were delivering samples to the trade shows, and the private viewings for mail order companies and department stores, all picked up increased business which resulted in the run up to Christmas starting early. With the increased practice of department stores offering privileged customers the chance to preview new season lines, it looks as though competition in the retail sector is going to be fierce. Manufacturers who ran stocks down, the race is on to restock, which means a lot of companies being dependent on the lending criteria of the banks to survive. Companies with cash reserves are now in a much stronger position than those who were trading on credit.
European runs virtually doubled this month, with Germany still contributing the largest share. Although we expected this increase in mid September, to keep up with the increased demand it has been necessary for all staff to be out on the road, resulting in telephones not being answered quickly, and some customers not being able to get through at all, resulting in more email request for loads to be delivered. RFT Express apologises for this, and trusts our customers were not unduly inconvenienced. Three new vehicles were ordered for the expected increase and should be in service over the next few weeks.
The sudden upswing in business with our customers may not be replicated nationwide, but it does lend a little bit more weight to the theory that we may be in for a double headed recession, if we come out of recession too quickly. I can see some companies who ran stock levels too low, being unable refinance stock levels, resulting in more closures over the next few months. One BBC reporter quoted the financial institutions as operating the 3-6-3 policy. Borrow at 3%, lend at 6%, on the golf course by 3.00 p.m.
The next 4 to 6 weeks should give a clearer picture.