1 Table of Contents 2
1.1 List of Tables 4
1.2 List of Figures 7
2 Introduction 9
2.1 What is This Report About? 9
2.2 Methodology 9
2.3 Profile of Survey Respondents 10
3 Executive Summary 15
3.1 The UK Business Vehicle Industry Is Generally Optimistic About the Recovery of the UK Economy 15
3.2 The Level of Optimism about Revenue Growth Is Higher Among Suppliers than Fleet Users 15
3.3 Business Vehicle User Companies Will Be Decreasing Procurement Spend Over the Next 12 Months 15
3.4 Industry Players Face a Number of Key Challenges Due to the Recession 16
3.5 Suppliers Must Update Their Knowledge of Fleet Users’ Needs During Periods of Recession and Recovery 17
4 Economic Outlook and Confidence 18
4.1 UK Economy Recovery Expectations 18
4.2 Revenue Growth Expectations 22
5 Business Vehicle Industry Investment Outlook 26
5.1 Fastest and Slowest Growing Markets 26
5.2 M&A Activity Predictions 28
5.3 Suppliers’ Industry Outlook 29
6 Recession and Recovery: Threats and Opportunities for the Business Vehicle Industry 33
6.1 Leading Business Concerns due to Recession 33
6.2 Key Actions to Overcome Business Threats 38
6.3 Key Actions to Maintain and Win Buyer Business 42
6.4 Leading Recession and Recovery Related Business Opportunities 51
7 Company Vehicle User Spend Activity 55
7.1 Annual Company Vehicle Procurement Budgets 55
7.2 Expected Change In Company Vehicle Procurement Spend 58
7.3 Expected Change In Spend By Product and Service Category 60
7.4 Expected Change In Fleet By Company Vehicle Type 67
8 Procurement Behaviors and Strategies and the Impact of Recession and Recovery 73
8.1 Critical Success Factors for Supplier Selection 73
8.2 Current Effects of Recession On Procurement Objectives 78
8.3 Expected Future Effects of Recession On Procurement Objectives 82
8.4 The Effects of Recession On Procurement Strategy 88
8.5 Policy, Rates and Price Changes Due to Market Uncertainty for Company Vehicle Users 97
9 Appendix 103
9.1 Full Survey Results-Closed Questions 103
9.2 Methodology 111
9.3 Contact Us 112
9.4 About Global Markets Direct 112
9.5 Disclaimer 112
1.1 List of Tables
Table 1: Count of UK Business Vehicle Industry Survey Respondents By Company Type (Number of Respondents), 2009 Industry Survey 10
Table 2: Buyer Respondents By Job Role (% Buyer Respondents), UK Business Vehicle Industry, 2009 11
Table 3: Buyer Respondents By Organisations’ Global Turnover (% Buyer Respondents), UK Business Vehicle Industry, 2009 11
Table 4: Buyer Respondents By Organisations’ Total Number of Employees (% Buyer Respondents), UK Business Vehicle Industry, 2009 12
Table 5: Buyer Respondents By Organisations’ Office and Premises Locations in UK and Ireland (% Buyer Respondents), Business Vehicle Industry, 2009 12
Table 6: Supplier Respondents By Job Role (% Supplier Respondents), UK Business Vehicle Industry, 2009 13
Table 7: Supplier Respondents By Organisations’ Global Turnover (% Supplier Respondents), UK Business Vehicle Industry, 2009 13
Table 8: Supplier Respondents By Organisations’ Total Number of Employees (% Supplier Respondents), UK Business Vehicle Industry, 2009 14
Table 9: UK Business Vehicle Industry Expectations of UK Economy Recovery Timings By Company Turnover (% All Respondents), 2009 20
Table 10: UK Business Vehicle Industry Expectations of UK Economy Recovery Timings By Company Type: Company Vehicle Users: Small Fleet, Company Vehicle Users: Large Fleet, Company Vehicle and Service Suppliers (% All Respondents), 2009 22
Table 11: Company Revenue Growth Optimism By UK Business Vehicle Industry Company Type: Company Vehicle Users: Small Fleet, Company Vehicle Users: Large Fleet, Company Vehicle and Service Suppliers (% All Respondents), 2009 24
Table 12: Company Revenue Growth Optimism By Company Turnover: Industry Suppliers (% Supplier Respondents), UK Business Vehicle Industry, 2009 25
Table 13: Predictions of the Fastest and Slowest Growing Market Sectors for the UK Business Vehicle Industry (% Supplier Respondents), 2009 28
Table 14: Key Growth Areas In the UK Business Vehicle Industry (Analysis of Supplier Respondents), 2009 Industry Survey 30
Table 15: Key Growth Areas In the UK Business Vehicle Industry – Senior-Level Responses Only, 2009 Industry Survey 31
Table 16: Key Declining Areas In the UK Business Vehicle Industry (Analysis of Supplier Respondents), 2009 Industry Survey 31
Table 17: Key Declining Areas In the UK Business Vehicle Industry – Senior-Level Responses Only, 2009 Industry Survey 32
Table 18: Company Vehicle User: Small Fleet Vs. Company Vehicle User: Large Fleet Vs. Company Vehicle and Service Supplier: Leading Business Concerns for the Period 2009-2010 Among UK Business Vehicle Industry Buyers and Suppliers (% All Respondents), 2009 36
Table 19: Leading Business Concerns for the Period 2009-2010 Among UK Business Vehicle Industry Buyers and Suppliers By Region: North England and Scotland, Yorkshire, the Midlands and Wales, London and the South, Northern Ireland and Ireland (% All Respondents), 2009 37
Table 20: Most Important Actions Being Implemented to Overcome Leading Business Concerns In 2009-2010 In the UK Business Vehicle Industry (Analysis of All Respondents), 2009 39
Table 21: Most Important Actions Being Implemented to Overcome Leading Business Concerns In 2009-2010 In the UK Business Vehicle Industry – Senior-Level Responses Only, 2009 40
Table 22: Most Important Actions Being Implemented By Company Vehicle Users: Small Fleet, Company Vehicle Users: Large Fleet to Overcome Leading Business Concerns In 2009-2010 In the UK Business Vehicle Industry (Analysis of Company Vehicle Users: Small Fleet, Company Vehicle Users: Large Fleet Respondents), 2009 41
Table 23: Most Important Actions Being Implemented By Company Vehicle and Service Suppliers to Overcome Leading Business Concerns In 2009-2010 In the UK Business Vehicle Industry (Analysis of Company Vehicle and Service Supplier Respondents), 2009 42
Table 24: The Most Important Actions for Suppliers to Take to Maintain and Secure Buyer Business During the Recession In the UK Business Vehicle Industry: Supplier Responses Vs. All Buyer Responses (% All Respondents), 2009 44
Table 25: The Most Important Actions for Suppliers to Take to Maintain and Secure Buyer Business During the Recession In the UK Business Vehicle Industry: Company Vehicle User: Small Fleet Vs. Company Vehicle User: Large Fleet (% Buyer Respondents), 2009 46
Table 26: The Most Important Actions for Suppliers to Take to Maintain and Secure Buyer Business During the Recession In the UK Business Vehicle Industry: Analysis of Buyer Respondents By Company Turnover (% Buyer Respondents), 2009 47
Table 27: The Most Important Actions for Suppliers to Take to Maintain and Secure Buyer Business During the Recession In the UK Business Vehicle Industry: Analysis of All Buyer Respondents By Company Vehicle Procurement Budget (% Buyer Respondents), 2009 48
Table 28: The Most Important Actions for Suppliers to Take to Maintain and Secure Buyer Business During the Recession In the UK Business Vehicle Industry: Analysis of All Buyer Respondents By Region (% Buyer Respondents), 2009 50
Table 29: The Most Important Actions for Suppliers to Take to Maintain and Secure Buyer Business During the Recession In the UK Business Vehicle Industry: Analysis of All Buyer Respondents By Purchasing Decision Seniority (% Buyer Respondents with Purchasing Decision Influence), 2009 51
Table 30: Leading Business Opportunities During the Recession (Analysis of All Respondents), 2009 Industry Survey 52
Table 31: Leading Business Opportunities During the Recession – Senior-Level Responses Only, 2009 Industry Survey 53
Table 32: Leading Business Opportunities for Company Vehicle Users: Small Fleet, Company Vehicle Users: Large Fleet During the Recession In the UK Business Vehicle Industry (Analysis of Buyer Respondents), 2009 54
Table 33: Leading Business Opportunities for Company Vehicle and Service Suppliers During the Recession In the UK Business Vehicle Industry (Analysis of Supplier Respondents), 2009 54
Table 34: Annual Company Vehicle Procurement Budgets In GBP In the UK Business Vehicle Industry: Company Vehicle User: Small Fleet Vs. Company Vehicle User: Large Fleet (% All Buyer Respondents), 2009 57
Table 35: Annual Company Vehicle Procurement Budgets In GBP In the UK Business Vehicle Industry By Company Turnover (% All Buyer Respondents), 2009 57
Table 36: Expected Change In Company Vehicle Procurement Spend Over the Next 12 Months: Company Vehicle User: Small Fleet Vs. Company Vehicle User: Large Fleet (% All Buyer Respondents), 2009 59
Table 37: Expected Change In Company Vehicle Procurement Spend Over the Next 12 Months By Company Turnover (% All Buyer Respondents), 2009 60
Table 38: Future Change In Spend In the UK Business Vehicle Industry By Product and Service Category: Company Vehicle User: Small Fleet - Expected Increase or Decrease Over the Next 12 Months (% Company Vehicle User: Small Fleet Respondents), 2009 62
Table 39: Future Change In Spend In the UK Business Vehicle Industry By Product and Service Category: Company Vehicle User: Large Fleet - Expected Increase or Decrease Over the Next 12 Months (% Company Vehicle User: Large Fleet Respondents), 2009 64
Table 40: Expected Change In Fleet By Company Vehicle Type: Company Vehicle User: Small Fleet - Expected Increase or Decrease Over the Next 12 Months (% Company Vehicle User: Small Fleet Respondents), UK, 2009 69
Table 41: Expected Change In Fleet By Company Vehicle Type: Company Vehicle User: Large Fleet - Expected Increase or Decrease Over the Next 12 Months (% Company Vehicle User: Large Fleet Respondents), UK, 2009 71
Table 42: Critical Success Factors for Selecting a Business Vehicle Industry Supplier: Buyer Vs. Supplier Comparison (% All Respondents), UK, 2009 76
Table 43: Critical Success Factors for Selecting a Business Vehicle Industry Supplier: Company Vehicle User: Small Fleet Vs. Company Vehicle User: Large Fleet Comparison (% All Buyer Respondents), UK, 2009 78
Table 44: Current Effects of Recession On Procurement Objectives and Priorities In the UK Business Vehicle Industry: Company Vehicle User: Small Fleet Vs. Company Vehicle User: Large Fleet (% All Buyer Respondents), 2009 81
Table 45: Current Effects of Recession On Procurement Objectives and Priorities In the UK Business Vehicle Industry By Company Turnover (% All Buyer Respondents), 2009 82
Table 46: Expected Changes In Procurement Strategy In the UK Business Vehicle Industry to Drive Value Across the Business Due to Recession: Company Vehicle User: Small Fleet Vs. Company Vehicle User: Large Fleet (% All Buyer Respondents), 2009 91
Table 47: Expected Changes In Procurement Strategy In the UK Business Vehicle Industry to Drive Value Across the Business Due to Recession: All Buyers By Company Turnover (% All Buyer Respondents), 2009 92
Table 48: Expected Changes In Procurement Strategy In the UK Business Vehicle Industry to Drive Value Across the Business Due to Recession: All Buyers By Purchasing Decision Seniority (% All Buyer Respondents Purchasing Decision Influence), 2009 93
Table 49: Expected Changes In Procurement Strategy In the UK Business Vehicle Industry to Drive Value Across the Business Due to Recession: All Buyers By Region (% All Buyer Respondents), 2009 95
Table 50: Company Vehicle User: Small Fleet Attitudes and Approaches to Existing Procurement Practices: Level of Agreement to the Following Five Statements (% Company Vehicle User: Small Fleet Respondents), 2009 96
Table 51: Company Vehicle User: Large Fleet Attitudes and Approaches To Existing Procurement Practices: Level Of Agreement To The Following Five Statements (% Company Vehicle User: Large Fleet Respondents), 2009 96
Table 52: Full Survey Results-Closed Questions 103
1.2 List of Figures
Figure 1: Leading Business Concerns for the Period 2009-2010 Among UK Business Vehicle Industry Buyers and Suppliers (% All Respondents), 2009 16
Figure 2: UK Business Vehicle Industry Expectations of UK Economy Recovery Timings (% All Respondents), 2009 19
Figure 3: UK Business Vehicle Industry Expectations of UK Economy Recovery Timings By Company Turnover (% All Respondents), 2009 20
Figure 4: UK Business Vehicle Industry Expectations of UK Economy Recovery Timings By Company Type: Company Vehicle Users: Small Fleet, Company Vehicle Users: Large Fleet, Company Vehicle and Service Suppliers (% All Respondents), 2009 21
Figure 5: Company Revenue Growth Optimism in the UK Business Vehicle Industry (% All Respondents), 2009 23
Figure 6: Company Revenue Growth Optimism By UK Business Vehicle Industry Company Type: Company Vehicle Users: Small Fleet, Company Vehicle Users: Large Fleet, Company Vehicle and Service Suppliers (% All Respondents), 2009 24
Figure 7: Company Revenue Growth Optimism By Company Turnover: Industry Suppliers (% Supplier Respondents), UK Business Vehicle Industry, 2009 25
Figure 8: Predictions of the Fastest and Slowest Growing Market Sectors for the UK Business Vehicle Industry (% Supplier Respondents), 2009 27
Figure 9: Merger and Acquisition Activity Expectations Over the Next 12 Months In the UK Company Vehicle and Service Supplier Industry (% Company Vehicle and Service Supplier Industry Respondents), 2009 29
Figure 10: Leading Business Concerns for the Period 2009-2010 Among UK Business Vehicle Industry Buyers and Suppliers (% All Respondents), 2009 34
Figure 11: Company Vehicle User: Small Fleet Vs. Company Vehicle User: Large Fleet Vs. Company Vehicle and Service Supplier: Leading Business Concerns for the Period 2009-2010 Among UK Business Vehicle Industry Buyers and Suppliers (% All Respondents), 2009 35
Figure 12: The Most Important Actions for Suppliers to Take to Maintain and Secure Buyer Business During the Recession In the UK Business Vehicle Industry: Supplier Responses Vs. All Buyer Responses (% All Respondents), 2009 43
Figure 13: The Most Important Actions for Suppliers to Take to Maintain and Secure Buyer Business During the Recession In the UK Business Vehicle Industry: Company Vehicle User: Small Fleet Vs. Company Vehicle User: Large Fleet (% Buyer Respondents), 2009 45
Figure 14: The Most Important Actions for Suppliers to Take to Maintain and Secure Buyer Business During the Recession In the UK Business Vehicle Industry: Analysis of All Buyer Respondents By Region (% Buyer Respondents), 2009 49
Figure 15: Annual Company Vehicle Procurement Budgets In GBP In the UK Business Vehicle Industry: Company Vehicle User: Small Fleet Vs. Company Vehicle User: Large Fleet (% All Buyer Respondents), 2009 56
Figure 16: Expected Change In Company Vehicle Procurement Spend Over the Next 12 Months: Company Vehicle User: Small Fleet Vs. Company Vehicle User: Large Fleet (% All Buyer Respondents), 2009 59
Figure 17: Future Change In Spend In the UK Business Vehicle Industry By Product and Service Category: Company Vehicle User: Small Fleet - Expected Increase or Decrease Over the Next 12 Months (% Company Vehicle User: Small Fleet Respondents), 2009 61
Figure 18: Future Change In Spend In the UK Business Vehicle Industry By Product and Service Category: Company Vehicle User: Large Fleet - Expected Increase or Decrease Over the Next 12 Months (% Company Vehicle User: Large Fleet Respondents), 2009 63
Figure 19: Future Change In Spend In the UK Business Vehicle Industry By Product and Service Category: Expected Increase Over the Next 12 Months Company Vehicle User: Small Fleet Vs. Company Vehicle User: Large Fleet (% All Buyer Respondents), 2009 65
Figure 20: Future Change In Spend In the UK Business Vehicle Industry By Product and Service Category: Expected Increase Over the Next 12 Months Among All Buyers By Company Turnover (% All Buyer Respondents), 2009 66
Figure 21: Expected Change In Fleet By Company Vehicle Type: Company Vehicle User: Small Fleet - Expected Increase or Decrease Over the Next 12 Months (% Company Vehicle User: Small Fleet Respondents), UK, 2009 68
Figure 22: Expected Change In Fleet By Company Vehicle Type: Company Vehicle User: Large Fleet - Expected Increase or Decrease Over the Next 12 Months (% Company Vehicle User: Large Fleet Respondents), UK, 2009 70
Figure 23: Expected Change In Fleet By Company Vehicle Type: Expected Increase Over the Next 12 Months Among All Buyers By Company Turnover (% All Buyer Respondents), 2009 72
Figure 24: Critical Success Factors for Selecting a Business Vehicle Industry Supplier: Difference In Views, Buyers Vs. Suppliers (Net Difference In Ranking), UK, 2009 74
Figure 25: Critical Success Factors for Selecting a Business Vehicle Industry Supplier: Buyer Vs. Supplier Comparison (% All Respondents), UK, 2009 75
Figure 26: Critical Success Factors for Selecting a Business Vehicle Industry Supplier: Company Vehicle User: Small Fleet Vs. Company Vehicle User: Large Fleet Comparison (% All Buyer Respondents), UK, 2009 77
Figure 27: Current Effects of Recession On Procurement Objectives and Priorities In the UK Business Vehicle Industry (% All Buyer Respondents), 2009 79
Figure 28: Current Effects of Recession On Procurement Objectives and Priorities In the UK Business Vehicle Industry: Company Vehicle User: Small Fleet Vs. Company Vehicle User: Large Fleet (% All Buyer Respondents), 2009 80
Figure 29: Likelihood of Future Change In Procurement Objectives In the UK Business Vehicle Industry (% All Buyer Respondents), 2009 83
Figure 30: Likelihood of Future Change On Procurement Objectives In the UK Business Vehicle Industry: Company Vehicle User: Small Fleet Vs. Company Vehicle User: Large Fleet (% All Buyer Respondents), 2009 84
Figure 31: Likelihood of Future Change On Procurement Objectives In the UK Business Vehicle Industry By Company Turnover (% All Buyer Respondents), 2009 85
Figure 32: Expected Future Effects of Recession On Procurement Objectives and Priorities In the UK Business Vehicle Industry (% All Buyer Respondents), 2009 86
Figure 33: Expected Future Effects of Recession On Procurement Objectives and Priorities In the UK Business Vehicle Industry: Company Vehicle User: Small Fleet Vs. Company Vehicle User: Large Fleet (% All Buyer Respondents), 2009 87
Figure 34: Expected Future Effects of Recession On Procurement Objectives and Priorities In the UK Business Vehicle Industry By Company Turnover (% All Buyer Respondents), 2009 88
Figure 35: Expected Changes In Procurement Strategy In the UK Business Vehicle Industry to Drive Value Across the Business Due to Recession (% All Buyer Respondents), 2009 89
Figure 36: Expected Changes In Procurement Strategy In the UK Business Vehicle Industry to Drive Value Across the Business Due to Recession: Company Vehicle User: Small Fleet Vs. Company Vehicle User: Large Fleet (% All Buyer Respondents), 2009 90
Figure 37: Expected Changes In Procurement Strategy In the UK Business Vehicle Industry to Drive Value Across the Business Due to Recession: All Buyers By Region (% All Buyer Respondents), 2009 94
Figure 38: Company Vehicle User: Small Fleet Vs. Company Vehicle User: Large Fleet Responses to the Question: Have You Altered Your Car Choice Policy as a Result of the Recession or Market Uncertainty? (% Buyer Respondents), UK Business Vehicle Industry 2009 98
Figure 39: Company Vehicle User: Small Fleet Vs. Company Vehicle User: Large Fleet Responses to the Question: If Car Choice Policy Has Changed, How Has Driver Choice Changed? (% Buyer Respondents), UK Business Vehicle Industry 2009 99
Figure 40: Company Vehicle User: Small Fleet Vs. Company Vehicle User: Large Fleet Responses to the Question: How Have Lease Rates Changed? (% Buyer Respondents), UK Business Vehicle Industry 2009 100
Figure 41: Company Vehicle User: Small Fleet Vs. Company Vehicle User: Large Fleet Responses to the Question: How Have Car Transaction Prices Change? (% Buyer Respondents), UK Business Vehicle Industry 2009 101
Figure 42: Company Vehicle User: Small Fleet Vs. Company Vehicle User: Large Fleet Responses to the Question: How Have Daily Rental Rates Changed? (% Buyer Respondents), UK Business Vehicle Industry 2009 102