This week we’re seeing some significant signs that the economic slowdown is definitely hitting home. Two major construction companies, Scarbro Construction and AH Construction have sadly gone into receivership, joining 183 other construction companies hitting the wall since August. Inflation has dropped back to 6.7%, much lower than the 7% bank economists were forecasting. That means a significant cooling off is underway. Our trade deficit is the worst on record, and the largest of the world’s 40 most advanced economies, which places New Zealand behind Greece. Put simply, we are spending more than we are earning as a nation – and can’t keep that up indefinitely.
All very interesting, but what matters is how it comes home to roost in your business. Talking with members daily, we are hearing road freight is definitely slowing down. Many tell us delivery volumes are dropping, a sure sign of an economy cooling off. It’s important to use these slowdowns to focus on your business – it really pays off. Getting on top of understanding costs and income, debt payments and whether routes are profitable or not is fundamental to navigating leaner times safely.
While it can be daunting, the good news is the team here at National Road Carriers is all geared up to help:
- our Commercial Transport Specialists are only a phone call away and provide expert advice on all aspects of running your business
- our member discount services deliver great savings on fuel with our partners Mobil and Z Energy, Carters tyres, Marsh insurance brokers, mobile phones with One NZ (Vodafone), Cyclone for IT kit and much more – don’t pay more than you need to
- our partner Spartan Finance can help with managing your finances – including providing temporary lines of credit to help get through the leaner times
- our cost model will tell you if you are making or losing money on your routes and contracts – just a phone call away
- be smart and use the Fuel Adjustment Factor (FAF) to manage fuel price ups and downs with your customers
- if you’re renewing your insurance, our partner Marsh have special offerings for NRC members, including interest-free monthly payments and a $4000 fleet risk management programme provided for free
If you’re yet to take advantage of our great fuel saving offers, Z Energy are offering a $200 credit for all new Fuel cards until 18 June. And for existing fuel card holders, buy over 1000 litres of fuel before then and be in to win a $5000 credit to your account.
Take the first step – do a health check on your business. You’re not alone facing these challenges, call the team here at NRC for help.
Justin Tighe-Umbers
CEO | National Road Carriers Assn
DDI: +64 9 636 2951
