Anyone who attended last year’s RTF Conference will recall Cameron Bagrie’s stark warning about the plethora of disruptive influences that are going to have an impact on New Zealand businesses in the coming years.
According to Bagrie, only one-third of New Zealand businesses are expecting a disruptive future, yet the fact is that anyone who believes the business environment will remain unchanged over the next five to 10 years is burying their head in the sand.
The theme of Bagrie’s address was that if we do not adapt to deal with these changes and instead choose to ignore them, then our businesses will suffer very serious consequences.
Technological advancements are completely changing the way in which people and freight are transported, while geopolitical factors such as Brexit and the growing influence of protectionism are threatening to have an impact on global trade, which is particularly concerning for a small export-based economy such as New Zealand.
The other major disruptor, of course, is environmental.
Climate change and our response to it is no longer something to be considered in the distant future.
There is no doubt that a changing climate is upon us.
We have moved past the point of scientific debate on whether it is happening or not, the discussion is now about how much we can mitigate our emissions and how to adapt to the inevitably of a changing climate.
If you are still one of those people that wishes to disregard the evidence for climate change then that is your prerogative, I guess.
However, the reality is that no matter where you stand on the science you and your business will have to find ways to adapt to it anyway because the commercial environment you operate in is changing regardless.
For a start, consumers are beginning to become a lot more discerning about the environmental impact of the products they buy and how those products got to them.
This inevitably has an impact on the transport component in the supply chain as manufacturers and retailers attempt to decarbonise as much as possible.
Secondly, the Government is planning to introduce a Zero Carbon Bill within the next couple of months.
This piece of legislation is intended to gain bi-partisan support and set a policy direction for New Zealand which will include a clear emissions target for 2050.
It will also set the emissions budgets that will ensure we meet it.
The transport sector, as well as being the fastest-growing contributor to climate change, is seen as fairly low hanging fruit by government officials when compared to agriculture, therefore will have firm obligations imposed on it to reduce emissions.
Recently, members of the Climate Leaders Coalition, a collection of around 80 New Zealand businesses including those involved in transport such as TIL, Toll and Waste Management, published a series of tips for things businesses can be doing right now to reduce their greenhouse gas emissions.
A number of those recommendations involve adjustments to the way businesses treat transportation.
These range from general policies such as the conversion of company cars to electric vehicles and a reduction in air travel through the use of video conferencing and flexible working arrangements to specific initiatives designed to reduce emissions that come from the transportation of freight.
The Warehouse Group publicised how it is tackling its transport emissions profile by improving international shipping container utilisation and introducing trucks with mezzanine floors to transport more goods.
They are using rail where possible and are investing in hybrid delivery vehicles and piloting fully electric delivery vehicles.
Their aim is to have 30% of their car fleet fully electric by the end of 2019.
While these initiatives aren’t specific to road freight, they illustrate the level of investment that our industry’s customers are willing to make to reduce their emissions profile.
Businesses are thinking more and more about the whole supply chain of a product and not just their own part in it.
Contact Energy advocates that businesses should look to reach out to suppliers and other like-minded organisations and work together to find areas where they can reduce emissions.
As an energy company they have supported their customers to trial electric vehicles, access energy audits, while benefitting from their own suppliers’ knowledge through the provision of better data, tips, and other low-carbon solutions.
So, while climate change and New Zealand’s emissions obligations certainly present road transport with many challenges, it also presents opportunities for transporters who are willing to work with innovative customers to invest in new technologies and find new, more efficient ways of doing things.
As Bagrie warned us, you can choose to ignore it if you wish, but you do so at your peril.