According to research carried out by consultancy Deloitte, the UK’s top firms will massively increase capital spending in the next 12 months, with over 30% of chief financial officers (CFO) at Britain’s premium listed firms scaling investment to capitalise on red hot domestic and foreign demand.

Deloitte surveyed 85 finance chiefs at firms which have a combined market value of nearly £500bn, representing 19% of the entire UK stock market.

CFOs seem to be looking past Omicron and plan to focus their businesses on growth in 2022, with 90% intending to expand their technological capacity in a sign that the productivity gains made by the rapid adoption of digital tools since the onset of the pandemic are set to continue.

Finance chiefs expect their gamble on investment to pay off, with 84% forecasting it will yield productivity enhancements.

This is certainly an approach that Metro, and our associate businesses, have taken, and plan to continue taking, over the foreseeable future with many initiatives and huge investment in our digital platforms. Embracing the latest technology, we continue to design, develop, create and deliver new and enhanced internal and external systems and applications.

And firms are more optimistic about operating in a post-Brexit environment. Worries that dominated the risk list in recent years – above all Brexit and weak global growth – have dropped sharply down the risk rankings.

However, Deloitte’s research indicates businesses are under intense pressure to survive amid a barrage of soaring costs and an ongoing labour squeeze, with 54% highlighting inflation as a key risk to their businesses’ performance, while 58% are concerned over persistent worker shortages.

Optimism dipped over the last month, driven lower by the threat of inflationary pressures and the hit to consumer confidence from plan B restrictions to curb the spread of Omicron.

At the same time, UK manufacturing supply chain disruptions eased in December, helping activity in the sector to expand at the fastest pace in four months. A positive indication of things to come in 2022.

Supply chains remain severely stretched, but the situation is stabilising, with vendor delivery times lengthening to the weakest extent for a year in December, which helped take some of the heat out of input price increases, and raise output across the consumer, intermediate and investment goods sectors during the final month of 2021.

The increased output was underpinned by rising intakes of new business as domestic market conditions strengthened.

With so much negative news abounding, it is heartening to see a positive business survey, that confirms some of our biggest firms will be investing for growth in 2022.

We certainly intend to continue our development, expanding our team, investing strategically and working with our network partners to grow our service portfolio globally.

Whatever your objectives are for the year ahead, we are ready to support you too, with supply chain solutions, that are designed around you and your operating environment.

We grow with our customers, by investing in our relationships and strategic partnership approach and consistently delivering the support that keeps them successful.

Metro continue, as always, to keep you updated on the current market conditions and situation and we will always have the latest news and best advice in the global logistics and supply chain environment, which is operating under new parameters in the ‘new normal’ world. Please do call us to arrange a meeting and discuss your own plans for 2022 and beyond and we will ensure that a tailored solution is designed that will ensure your business can continue to grow consistently.

Current supply chain stresses and Christmas holiday dates are combining to create specific festive challenges, that may impact your supply chain, which is why we have compiled those most likely to have an operational or financial impact. 

As we come towards the close of the year we are faced with challenges across the board, on all modes of transport, in all directions. With this year’s festive holiday period basically offering a two day delivery window, between the 24th December and 4th January. 

Issues that are being experienced and expected to escalate during the 10 day holiday period include:

1. Ports, airports, rail heads will be lightly staffed, slowing vessel unloading/ loading with potential for delays, backlog of vessels or UK ports being omitted.
2. Hauliers and drivers taking holiday will restrict vehicle availability and capacity.
3. Clients’ warehouses/ DC’s will be closed or working on restricted staff numbers, with reduced booking windows.
4. Vessels continue to arrive off schedule and are still changing daily on ETA/ETD or omitting ports.
5. Airlines are cancelling large numbers of scheduled flights due to falling travel demand creating a shortage of cargo capacity, especially on long haul routes such as North America and Asia creating a spike in prices.
6. Hauliers and shipping lines currently are primarily only accepting transport transactions after January 4th 2022.
7. If ports become congested due to a slow down in equipment release and acceptance it is highly likely that they will not be able to receive either laden or unladen containers and these will be redirected to other interim holding areas/ ports as a consequence.
8. Customs authorities will be operating with skeleton staff throughout UK and Europe – for any urgent brokerage requirements please ensure that these are highlighted as soon as possible.
9. Shipping lines and Ports are not giving any extended free time or detention and demurrage days resulting in additional costs being incurred. These are likely to be incurred 5 to 7 days after arrival of vessels, when they do eventually berth.
10. This list is by no means exhaustive and these observations are without the growing effect of the Omicron COVID variant, which looks likely to massively impact the UK infrastructure over coming weeks, leading to working restrictions and possible firebreak lockdowns.

Metro are doing everything that we can to mitigate additional costs but the reality is with a 10 day ‘virtual closure’ of the logistics sector in the UK and the growing influence of Omicron, additional costs may be unavoidable, whether as a recovery of issues as they occur, or through storage charges that are applied after free time periods are exceeded.

We will continue to keep you updated and advised on the conditions and events as they occur and we will advise on additional costs that are incurred, or likely to be incurred, as soon as we are aware of these.

We are asking customers to advise on their own arrangements for the festive period, in relation to warehouse availability, office attendance and out of office contact details so that we are able to communicate everything with you during the Christmas and New Year holiday season.

Metro will continue to operate, as key workers, from the office and remotely from home with the statutory holidays being observed, when we will be closed, like most other organisations. We understand the need for proactive and high level communication during the period, and as always, we will ensure that you are kept advised of the situation down to consignment transaction level.

Thank you for your support, Merry Christmas and Happy New Year.