Product costs are coming down and there is scope for more individualized services, such as door-to-door transport or home delivery. Low-cost providers who can resist inflation should see success. As automated guided vehicles (AGVs) reduce the need for city parking, space will become available to absorb rising populations, while dispersion into suburbs could lead to changes in public transport and delivery networks. In addition to expanding the market for transport and shipping services, it will be crucial to gain a better understanding of customers and their needs. Companies must focus on investing in digital and physical assets.
Company specific thoughts:
It is critical for companies to protect their physical and digital distribution from intermediaries. Large scale, low cost airlines such as EasyJet and Ryan Air are the strongest winners, as they already have well-established digital infrastructures and the potential to make greater gains through developments such as artificial intelligence. ‘To the door’ delivery experts such as DPW GY, DSV DC, KNIN SW and PWTN SW will grow in importance as products begin to flow more quickly, while trade barriers may need to be negotiated by cross-border experts. From the review, the public transport companies that so far have failed to fully embrace digitization include GFP LN, GOG LN, and NEX LN.
Industrials: Up close
The future will be determined by those who are willing to reinvest, adapt and turn future threats into opportunities.