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Prime Mover Magazine

Freight forwarding companies face management challenges

The latest International Freight Forwarding & Customs Broking industry report has observed succession planning as a key focus for the industry as it moves into its next phase.

According to the report, released by HLB Mann Judd in conjunction with The Australian Federation of International Forwarders and The Front-Line Group, 72 per cent of surveyed respondents who were waiting to retire or sell their business stated that they had not yet started a plan for the transition of their business.

Nearly 22 per cent indicated they were looking to retire or sell their business in the next five years.

The report, based on a survey of a large sample of Freight Forwarding and Customs Broking businesses across Australia, confirmed the majority of respondents were not yet prepared for the founder or owner to retire or sell their business.

Steve Grivas, Freight Forwarding Lead Partner, HLB Mann Judd Sydney, said the value of a business and its future viability, could be shaped by hasty contingencies.

“Succession planning is something that takes time, and if it is to be done properly then businesses need to start thinking about it five or even 10 years in advance,” said Steve Grivas, Freight Forwarding Lead Partner, HLB Mann Judd Sydney.

The report found that 41 per cent of businesses were encouraged by growth prospects and would like to expand into new and emerging markets.

A majority of organisations were planning for growth. 55 per cent of respondents were actively recruiting, with a further 18 per cent planning to recruit in the next year.

61 per cent of those who participated in the survey believed that economic conditions and the impact these would have on consumer demands was the biggest external factor influencing their business. 21 per cent identified currency exchange rates, competition, M&A activity and fuel prices to be key influences moving forward.

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