CommercialFleet

Van-dependent businesses contribute £120bn to the economy

Light commercial vehicles are delivering more than just goods and services to homes and businesses, they are also making a significant contribution to the UK economy. 

Research has revealed that van-dependent businesses generated £120 billion for the economy in 2014, up 16% from 2010, while the average Ford Transit, the UK’s best-selling van, will contribute almost £200,000 to the economy throughout its lifetime.

James Broadhead (pictured), CEO of Close Brothers Motor Finance, said: “Although vans are a common sight on our roads, we can often overlook their important role within our wider economy.

“They are an integral part of the supply chain for almost every industry and service, and with the rapid growth of online shopping they are increasingly used to deliver a wide range of food and other products to our homes as well.

“However, while their use in transporting good and services has been apparent for many years, it is this relatively recent growth in online retail that is most influential for the industry, as a strong correlation has been observed between online sales and sales of LCVs.

“The amount consumers spend online has more than doubled in the last five years and it’s considered to be a major factor behind the buoyant LCV market, as it’s placed greater demand on delivery and transport firms to keep up.”

Figures released by the Society of Motor Manufacturers and Traders (SMMT) in July revealed that van sales were up 19.3% compared to last year, while overall sales of LCVs hit a record high during the first six months of 2015, with 186,404 new vehicles registered.

Broadhead added: “The outlook appears positive, particularly for dealers, as with online sales predicted to rise further in the coming years, it suggests there may be a consistent demand for new and used vans.   

“It’s important however that dealers respond now to ensure that they are able to take advantage of any opportunities as they arise, especially as it’s such a diverse market.

“The needs of every van user will be different so it’s crucial that dealers can offer them the right vehicle to meet both their business and their financial requirements.

“That’s why our team of account managers are committed to working with our LCV dealer partners to help them understand the specific needs of each customer and help them add value to their business.”

 

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