It was only last year that many companies in the US and UK were forced to take drastic action when petrol prices took a sharp rise. Many who relied on large fleets of vans to transport goods all over the country were forced to slash employee pay and take a number of their vehicles off the roads.

Fleets may need to be reduced even further now and companies pushed even closer towards breaking point as the government announces predicted further cost increases in the coming months. This flux in prices is causing many companies a large amount of grief as they cannot accurately plan their profits and losses. “Each time we plan out our business for that quarter, petrol prices are put up and our costings go out of the window” says Barry Hemstone, MD of RDA Foods. Around 25% of all companies in the US that were heavily reliant on transport, went into administration last year, which is a figure many predict will be replicated this year as well.

For companies that rely so heavy on petrol prices to turn over a profit, the news of another rise has not been well received. “We cannot survive much longer” claims Judith Grey, MD of UK-based company Grey Kitchens. Our customers expect their furniture to be delivered to them, which is something that is becoming financially unviable for us now. Some companies such as the one mentioned above have taken up cheap van leasing to try an reduce their outgoings. This is because van leasing enables businesses to not buy their vans outright and so this is a useful option if cash-flow is poor. An interesting point to note is that Citroen van leasing has been the most popular choice as on average these vans offer the best MPG. LDV van leasing has also been a strong choice as their reliability is thought to save companies large amounts of money in reduced maintenance costs.

It was only last year that many companies in the US and UK were forced to take drastic action when petrol prices took a sharp rise. Transport-based companies were hit hardest for obvious reasons and lots had no choice but to cut pay and cut vehicle numbers.

Now, after it was announced that petrol prices are set to rise again in the coming months, some businesses are on the edge and a large percentage of them are having to cut their fleet even further. What is frustrating many business owners about this situation is the lack of information it gives them to predict profit margins. “We get a set of forcasts drawn up and then they mean nothing when petrol goes up so much” argues Jerry Henley, Managing Director of JHG Foods. Over 20% of all American transport-based businesses were forced to cease trading in 2008, and the figure is thought to be something similar in 2009 also.

For companies that rely so heavy on petrol prices to turn over a profit, the news of another rise has not been well received. “We cannot survive much longer” claims Judith Grey, MD of UK-based company Grey Kitchens. Our customers expect their furniture to be delivered to them, which is something that is becoming financially unviable for us now. Lots of businesses like this found some salvation in van contract hire as a way of bringing down their overall costs. This is because van leasing enables businesses to not buy their vans outright and so this is a useful option if cash-flow is poor. Believe it or not Volkswagen van leasing has come out on top this year in terms of popularity, largely due to the high miles per gallon figures they offer. LDV van leasing has also been a strong choice as their reliability is thought to save companies large amounts of money in reduced maintenance costs.

It wasnt that long ago that business in the UK and US found themselves under a large amount of pressure when their margins were slashed due to a increase in petrol prices. Transport-based companies were hit hardest for obvious reasons and lots had no choice but to cut pay and cut vehicle numbers.

Fleets may need to be reduced even further now and companies pushed even closer towards breaking point as the government announces predicted further cost increases in the coming months. What is frustrating many business owners about this situation is the lack of information it gives them to predict profit margins. “We get a set of forcasts drawn up and then they mean nothing when petrol goes up so much” argues Jerry Henley, Managing Director of JHG Foods. Many business experts have predicted that 2009 will see similar levels of transport-based companies shut down as witnessed last year, which was around 15%.

Many people and businesses are on their last legs right now and the last thing they need is an increase in their overheads. “We are being crippled” argues Fiona Potter, who runs a small furniture chain in the UK. Our customers expect their furniture to be delivered to them, which is something that is becoming financially unviable for us now. A number of similar companies are turning to van leasing to try an reduce their outgoings. This is because van leasing enables businesses to not buy their vans outright and so this is a useful option if cash-flow is poor. Interestingly, Citroen van leasing has come out on top this year in terms of popularity, largely due to the high miles per gallon figures they offer. LDV van leasing has also been a strong choice as their reliability is thought to save companies large amounts of money in reduced maintenance costs.

It was only last year that many companies in the US and UK were forced to take drastic action when petrol prices took a sharp rise. Many who relied on large fleets of vans to transport goods all over the country were forced to slash employee pay and take a number of their vehicles off the roads.

Fleets may need to be reduced even further now and companies pushed even closer towards breaking point as the government announces predicted further cost increases in the coming months. What is frustrating many business owners about this situation is the lack of information it gives them to predict profit margins. “We get a set of forcasts drawn up and then they mean nothing when petrol goes up so much” argues Jerry Henley, Managing Director of JHG Foods. Around 25% of all companies in the US that were heavily reliant on transport, went into administration last year, which is a figure many predict will be replicated this year as well.

For companies that rely so heavy on petrol prices to turn over a profit, the news of another rise has not been well received. “We are being crippled” argues Fiona Potter, who runs a small furniture chain in the UK. Our customers expect their furniture to be delivered to them, which is something that is becoming financially unviable for us now. A number of similar companies are turning to cheap van leasing as a way of bringing down their overall costs. Because they are not buying the vehicles outright, they can afford to spend more on petrol whilst maintaining their margins. An interesting point to note is that Citroen van leasing has been the most popular choice as on average these vans offer the best MPG. Ford van leasing has also been a strong choice as their reliability is thought to save companies large amounts of money in reduced maintenance costs.

It wasnt that long ago that business in the UK and US found themselves under a large amount of pressure when their margins were slashed due to a increase in petrol prices. Those companies that had transport operations felt the pressure more than most and it was common to see vehicle fleets reduced by more than half.

It was avouched this month that many businesses could be in for a second pounding as petrol prices are set to take another upward spike. The worst part of it, according to many transport companies is that they are increasingly unable to formulate accurate profit projections. “Each time we plan out our business for that quarter, petrol prices are put up and our costings go out of the window” says Barry Hemstone, MD of RDA Foods. Over 20% of all American transport-based businesses were forced to cease trading in 2008, and the figure is thought to be something similar in 2009 also.

For companies that rely so heavy on petrol prices to turn over a profit, the news of another rise has not been well received. “We cannot survive much longer” claims Judith Grey, MD of UK-based company Grey Kitchens. Our customers expect their furniture to be delivered to them, which is something that is becoming financially unviable for us now. Lots of businesses like this found some salvation in van leasing as a way of bringing down their overall costs. This is because van leasing enables businesses to not buy their vans outright and so this is a useful option if cash-flow is poor. An interesting point to note is that Citroen van leasing has come out on top this year in terms of popularity, largely due to the high miles per gallon figures they offer. Ford van leasing is also up their with the most popular choices as their reliability is well respected in many industries.