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With the number of new HGV registrations dropping sharply in the first quarter of 2020, the VehoGroup team discusses how this could affect the immediate future of the industry.
New HGV registrations dropped 22.5%, according to figures recently released by the Society of Motor Manufacturers and Traders, with the 9,193 units registered marking a fall of approximately 2,600 vehicles on the previous year.
This substantial fall in the number of vehicles registered is a yet another indicator of just how much the Covid-19 crisis has impacted upon the sector and we will likely see similar, if not worse, figures for Q2 of 2020.
The drop in new registrations is yet another blow for efforts to increase the number of high-tech, low emission vehicles that we see on our roads as we work towards greater sustainability within the sector.
Earlier in the month, we discussed how the failure to hit emissions targets could be threatened by an unwillingness to renew vehicles as a result of uncertainty, tighter profit margins and reduced confidence in the sector – now it seems the data is already indicating that this could be the case.
This further exemplifies the importance for companies to embrace technological developments that facilitate cost-effective operations that track maintenance, reduce lead-times, minimise fuel usage and keep our drivers safe, especially as these risks can increase as vehicles age.
Whilst transport will forever be a robust industry, the intensifying pressures on the sector – whether they be environmental, political or legal – show just how important a tool information analysis is in keeping competitive during these tough times.
Elsewhere in the industry, jobs advertising for HGV drivers fell 7.4% in the last week according to the Recruitment and Employment Confederation – one of the sharpest falls across all sectors of the UK economy.
The strain that the sector is under highlights the need for companies to remain focused on delivering the best possible operational efficiency, if they are to retain profitability.
As we all continue to get to grips with the new circumstances that we have to operate in, this latest news provides further evidence that software has a vital role to play in keeping our sector safe whilst ensuring the highest possible level of performance from our fleets.
We hope that this piece finds you well as we all continue to work our way through this crisis together.
Please reach out to us if you think there is anything we can do to help you at present, or if you just feel like a reassuring chat.
Stay safe and keep in touch!
Chief Technical Officer, VehoGroup Ltd
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