Companies from the logistics, retail and production sectors agree that the economic environment this year is more challenging than the year before, according to the CBRE Confidence Index. However, industries have different views on the future. Already 9 out of 10 logistics companies believe that their turnover will increase or remain unchanged in the next 12 months. In retail and production, this opinion is shared by 60% of companies. Conversely, when it comes to the conditions of running a business in the coming months, companies in the logistics sector have greater concerns. Only 28% of logistics operators anticipate an improvement, while for companies involved with retail and production, the comparable figure is 36%.
"Logistics is one of those market sectors that not only did not lose, but even benefited from the pandemic. Therefore, logistics operators are more confident about the market situation and their level of optimism, despite the challenges related to the situation in the world, is at a similar level as a year ago. It is clear, however, that entrepreneurs hope that the coming months will be better. In particular, they anticipate an increase in turnover. They are counting on this much more than on improving the conditions for doing business", says Agata Czarnecka, Director in the Research and Analysis Department at CBRE.
Difficult business conditions, but hope for higher turnover
The CBRE Confidence Index report shows that, in the opinion of entrepreneurs from the logistics, production and retail sectors, the current economic situation is more difficult than in the previous year. As many as 78% of companies state this opinion. Every third company expects an improvement in the economic environment in the coming months. Almost half (44%) anticipate some external difficulties in running a business efficiently, and 24% expect business conditions to remain at the same level as in 2020.
Encouragingly, when asked about the expected changes in turnover next year, more than half of the entrepreneurs surveyed (52%) forecast growth. Every fourth one assumes that the turnover will not change, whilst the same percentage anticipates a slight decrease.
"The optimism regarding the increase in turnover is followed by slightly less positive forecasts of business profitability. This is a trend that repeats itself in our every report. While more than half of the companies surveyed forecast an increase in turnover, 44% expect higher profitability levels. Another 27% said that they do not anticipate a change in profitability in the next 12 months, and 29% say that their profits may fall", says Agata Czarnecka.
Logistics believes in their own business, with less emphasis on the economic environment
Logistics operators strictly assess the current economic situation. Almost 7 in 10 entrepreneurs surveyed say that the current market conditions are more difficult than 12 months ago. Additionally, only 28% of companies anticipate that the conditions for running a business will be more favourable next year. It turns out, however, that little faith in the economic environment does not go hand in hand with a low assessment of running your own business. Almost all, 92% of logistics companies studied believe that their turnover will increase or remain unchanged in the coming months. Additionally, half of the logistics companies we approached expect higher profits in the coming year. Every third entrepreneur anticipates a decline.
Retail and production hope for the improvement of business conditions
Currently, 88% of entrepreneurs from the retail and production sectors believe that the current market conditions are more difficult than 12 months ago. On the other hand, manufacturing and trade companies are looking to the future with greater optimism than logisticians - 36% of them believe that the conditions for doing business will be more favorable (28% in logistics). As for turnover, 6 out of 10 trade and production companies expect an increase in the coming months, while two-fifths expect a decline. 38% of companies anticipate higher profits, but every fourth company expects a decline, and 37% do not expect any changes.
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