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Logistics and Haulage: The Road to Net Zero

With the UK general election upon us, there is much talk of how things may change in the coming months and years.  And given the chosen date of the election (4th July), it seems apt to quote one of the Founding Fathers of the United States of America:

 “Nothing is certain,” said Benjamin Franklin, “except death and taxes.” In this day and age, we must add another certainty and make it death, taxes and Net Zero Targets. 

The Climate Change Act 2008 legally commits the United Kingdom to its net zero targets.  This means that whatever the configuration of the UK Parliament, we will see amongst other things the mandatory phasing-out of new diesel engines and a shift towards zero emission vehicles such as electric vehicles (EVs) and hydrogen-powered vehicles.

This affects everyone in the country, and logistics and haulage firms especially face very significant challenges.

The Bad News

The difficulties that many firms have been grappling with are set to continue:

There is no denying that transitioning from diesel-powered vehicles to electric or hydrogen-powered alternatives involves significant upfront costs for logistics and haulage companies.

Furthermore, the time required to recharge electric HGVs or refuel hydrogen vehicles could disrupt delivery schedules and reduce operational efficiency compared to the quick refuelling of diesel trucks.

Limited charging and refuelling stations complicate route planning, particularly for long-haul routes that cross regions with sparse infrastructure.

Let’s not forget the competitive disadvantage to UK logistics companies compared to international companies not facing the same regulations, and the risk of increased costs associated with meeting Net Zero targets being passed to your customers.

It is testament to the pragmatism and goodwill of those in the logistics and haulage sector that firms have been working hard for years to help reduce carbon emissions despite the challenges this poses.

The Good News

Amidst the turbulence, it is sometimes difficult to keep in mind the very real benefits to your business that come with march toward Net Zero:

  • Lower Energy Bills: Energy efficiency measures reduce consumption, leading to lower energy bills for businesses and households.
  • Operational Savings: Businesses that invest in green technologies often see long-term savings through reduced fuel and maintenance costs.
  • Consumer Demand: There is growing consumer demand for sustainable practices. Companies that lead in sustainability can attract environmentally conscious customers and strengthen brand loyalty.
  • Competitive Advantage: Being a leader in sustainability can differentiate a company in the marketplace, potentially leading to increased market share and business opportunities.
  • Diversification of Energy Sources: Transitioning to electric and hydrogen vehicles reduces dependence on fossil fuels, which are subject to price volatility and supply disruptions. This can lead to more stable and predictable operating costs.
  • Market Access: Many customers and partners are increasingly prioritizing sustainability. Companies that meet Net Zero targets may find better opportunities for contracts and partnerships with environmentally conscious businesses.
  • Future-Proofing: Adopting Net Zero practices helps companies stay ahead of regulatory changes. As more countries and regions implement stringent emissions regulations, being an early adopter can provide a competitive edge.

So while the transition to Net Zero poses challenges, it also offers numerous benefits that can enhance the efficiency, competitiveness, and sustainability of the UK logistics and haulage sector. Embracing these opportunities can position companies to thrive in a rapidly evolving market landscape.

The Even Better News

The bad needn’t be an obstacle to the good.  Acorn Business Finance is committed to helping you with the tools you need to perform and grow.  The EVs and other low emissions assets your firm needs can be acquired while comfortably managing your cashflow.

We are here to help logistics and haulage firms as they embrace sustainability and drive towards a greener future.

A Hire Purchase Agreement has a lot to recommend itself:

  • Affordability: A hire purchase agreement would enable your company to acquire expensive low-emission vehicles without the need for significant upfront capital. This makes it financially feasible for you to transition to a greener fleet.
  • Technology Upgrade: By spreading the cost over time, you can more readily invest in the latest green vehicle technologies, which are crucial for meeting Net Zero targets and staying competitive in a market that increasingly values sustainability.
  • Predictable Payments: Fixed monthly payments make it easier for haulage companies to manage their cash flow and budget effectively. This predictability helps in planning and allocating resources towards other sustainability initiatives or operational needs.
  • Retained Working Capital: Without a large initial outlay, companies can preserve their working capital for other investments, such as infrastructure for vehicle charging or refuelling, staff training on new technologies, or expanding their service capabilities.

For developing and future-proofing your depots and other sites, Business Development Funding is well worth considering.   With these funds, your sites can be kitted out with solar panels and LED lighting, lowering overall energy consumption.

You may be looking to invest in advanced logistics software which can optimize routes, leading to fuel savings and fewer emissions, or to integrate renewable energy sources and carbon offset programs into your portfolio.

These investments not only help you reduce your carbon footprint, they can enhance operational efficiency, and may lower costs in the long run.

If your firm is looking for new premises, a commercial mortgage is very likely to be in order.   

Acorn Business Financecan help you with all of these products.  Get in touch to find out how we can help you keep ahead of the net zero curve.

Conclusion

In this period of rapid change and daunting targets, the logistics and haulage sectors are both bearing the brunt and leading the way.  But they need not face this alone:  support exists and the benefits are nearer than they may seem.

Nicki was very helpful and kept us up to date with everything - even when she had time off she made sure we were updated. Whenever there was a query she got to it quickly and helped us understand the issue so we could answer and solve it straight away. It became a very simple process so we could focus on our business.
Very helpful and kept up to date with everything
Stuart was quick to understand our requirements and was able to recommend a cost-effective solution. The process was professional and efficient from start to finish. Each stage was explained thoroughly and our documents checked by the team, so we could get things right first time - we would not hesitate to go back to Acorn Business Finance for any future requirements.
A really positive experience
5 stars from start to finish. Stuart and his team were fantastic!
5 stars from start to finish
Stuart at Acorn was superb. Understood our fully requirements, engaged with us pro-actively throughout. Could not have been more helpful. Organised all the funding requirements we needed at excellent rates. Could not recommend enough.
Engaged with us pro-actively throughout
All the team have been extremely helpful and kept me in the loop with progress reports as we have gone along. I would definitely recommend Stuart and Cathy for their helpful attitude, nothing has been too much trouble during a time that has been stressful for our business.
Taken the stress away
Amazingly quick to get the deal done from start to finish, and to get the money into the bank. A breath of fresh air and the wonder why everyone else can't work like this. Thoroughly recommended.
Amazingly quick
I have dealt with Stuart and his team at Acorn Finance for a number of years now and they are very efficient, always keep you updated, and you receive a personal service. They understand our business needs. The CBILS Loan from initial enquiry to funds in the bank less than a week. I would highly recommend them.
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To discuss financing for your business, contact us either by phone 01242 395 507, email hello@acornbusinessfinance.co.uk or book a callback.

Please note, calls may be recorded for training and quality purposes.

  • +44 (0) 1242 395507
  • hello@acornbusinessfinance.co.uk
  • Suite 1.27, Clockwise Offices, Festival House, Jessop Avenue, Cheltenham, GL50 3SH
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Acorn Business Finance strives to provide clients with the highest level of service. If you feel that our service fails to meet your requirements and you would like report a complaint, get in touch via hello@acornbusinessfinance.co.uk

Acorn Business Finance is the trading name of SJT Corporate Finance Limited. SJT Corporate Finance is registered in England and Wales, number 10919713. Registered office, Festival House, Jessop Avenue, Cheltenham GL50 3SH. SJT Corporate Finance Limited is authorised and regulated by the Financial Conduct Authority, reference number 822913. ICO registration ZA301050 and you can check via www.ico.org.uk.

We are a credit broker, not a lender. We work with a panel of funders to find a potentially suitable arrangement for your consideration.

We will receive commission from these funders, different funders pay different amounts depending on their commission model. For transparency we normally work with the following commission models – a percentage of the amount you borrow. Further details of the commission model, calculation and amount will be disclosed to you throughout your customer journey.

Eddie

Eddie

Eddie brings a wealth of experience and knowledge from the finance sector.
Since building up and successfully selling on his own vehicle leasing brokerage, he joined Acorn Business Finance 5 years ago as a consultant covering the North of the country. Based in South Cheshire, he is ideally located to assist SME clients
around the whole area. 

He enjoys building long term relationships with clients and helping them achieve their targets by providing creative funding solutions and watching their businesses grow. Outside of work Eddie enjoys escaping to North Wales to get wet and cold up various mountains, sampling some good food and beer once he gets down again, and spending time with his family – mainly chasing his 2 young sons around.