We have published a new report presenting the findings from Phase 3 of its User Insight programme of research, which explores transport-related behaviours and attitudes of transport users in the North in order to strengthen evidence around how transport improvements can drive inclusive economic growth by connecting people and businesses to a wider range of economic and social opportunities. This new research explores the importance of transport connectivity for Northern businesses and the ways in which businesses could benefit from improved transport.
In early 2021, Transport for the North commissioned SYSTRA to deliver Phase 3 of its User Insight research programme, which aimed to identify the latest evidence on the transport-related needs, behaviours, policies and attitudes of Northern businesses, as well as establish the ways in which different types of businesses are likely to benefit from TfNâs programme of transport interventions. This was explored via a review of existing data and literature focussing on trends in business-related transport across the North, and a telephone survey with 1,000 Northern business representatives across all sectors, as well as a small number of in-depth workshops and interviews with businesses.
This study contributes to a body of evidence highlighting how vital a reliable and efficient transport network is to businesses in the North; with businesses reliant on transport in order for their staff to commute to work, to travel to business meetings (for example to meet with customers or suppliers), and to ensure the efficient receipt and delivery of physical goods/materials. The study reveals how trends for each of these types of business-related journeys have changed since the beginning of the Covid-19 pandemic, and how businesses anticipate demand for business-related journeys could change in the next 2-3 years.
Businesses reported that, on average, home-working has increased significantly during the pandemic (almost three times the time spent working from home compared to before the pandemic); and businesses anticipated that the amount of time spent working remotely is likely to remain above pre-pandemic levels, at least in the next 2-3 years. However, businesses within more âgoods-intensiveâ sectors (those typically more reliant on receiving or delivering physical goods, such as manufacturing, construction, wholesale and retail trade, and transportation and storage) were generally less likely to anticipate high levels of remote working post-pandemic, while some service-based sectors such as health and social work also displayed continued demand for commuting trips.
Many businesses indicated that in future, longer journeys to meetings will be less likely to be made. The growing reliance on virtual meetings, in particular during the pandemic, was suggested to be a key contributor to this trend. However, some types of businesses suggested that their demand for future business travel may stay the same, or increase in the future, namely more goods-intensive businesses, and younger businesses (those operating at their main site for five years or less).
The study also explored trends around transport of goods from a smaller sub-set of businesses who had stated that transport of goods constituted a significant proportion of their overall business travel needs. Two in five of these businesses receive goods deliveries on a daily basis, most often directly from suppliers, who are mostly based within the North. Meanwhile, just under a third of goods received by these businesses are delivered by couriers or delivery companies, while a quarter are delivered by their own company vehicles. Almost half of these businesses despatch/deliver goods on a daily basis using their own vehicles, and one third despatch goods daily via couriers or delivery companies.
While there was a fairly mixed picture in terms of the change in frequency of deliveries received and despatched during the pandemic, over half of these businesses anticipate an increase in the number of deliveries received and the number of deliveries despatched in the next 2-3 years compared to during the pandemic, indicating potential future growth in demand for transport of goods.
Currently, most businesses rely on cars or vans to facilitate commuting journeys, travel for business meetings, and for transporting goods. For example, three quarters of employees were estimated to be commuting to work using a private car or van pre-pandemic. While the majority of businesses didnât anticipate changes in employeesâ use of private modes for commuting in future, of those who anticipated a change, a larger proportion expected an increase than a decrease (particularly in goods-intensive sectors). Businesses also anticipate that travelling by private car will remain the dominant mode for future business trips.
Two thirds of businesses reported they have no initiatives in place to support the use of public transport, car sharing, or cycling for employeesâ commuting journeys. Whilst some businesses had introduced measures such as showers and cycle storage, or locating their main sites close to public transport to encourage use of alternative modes, others generally felt that it would not be possible for businesses to reduce car usage without improved public transport as a viable alternative.
Among those businesses which had a company vehicle or fleet of vehicles, the proportion of vehicles that are electric or hybrid was low (6%), with around half of businesses suggesting that they faced barriers to upgrading their vehicle fleets to electric/hybrid vehicles. There is nonetheless the appetite from many businesses to upgrade their fleets, provided such vehicles can meet the needs of their operations. A quarter of businesses which had a company vehicle/fleet said that increased financial incentives would encourage them to switch to electric or hybrid vehicles.
Feedback from many businesses revealed that their activities are constrained by congestion on the road network and the unreliability, cost, and lack of convenience of rail and bus travel. Businesses were asked about how their transport use might change in response to an improved road and rail transport network, and which benefits this might bring for their business. One in five businesses anticipated that they would travel more frequently to business meetings by road if journey time reliability was improved on the road network, while 15% said they would make more goods deliveries by road in the same scenario. Businesses which have a greater need for receiving or delivering physical goods were particularly likely to say they would make more deliveries if road journey time was improved. Around one in five businesses stated that they would make more journeys via rail as a result of TfNâs proposed rail improvements.
When asked about potential benefits they might enjoy as a result of improvements to the road and rail networks, the majority of businesses assessed such benefits as âsomewhat likelyâ. There were some differences in the types of anticipated benefits between businesses of different sizes and ages. Medium and large businesses were more likely to anticipate benefits relating to efficiency â such as increased productivity due to faster journey times, and reduced business costs due to more predictable journey times. By contrast, businesses which tend to be younger, or have fewer employees, were more likely to anticipate benefits relating to business growth – such as gaining improved access to new suppliers from further afield, and opening up new business opportunities in other areas of the UK.
Using survey data, the study has identified four distinct business types, which are different from each other in terms of their behaviours and attitudes, and their perceived ability to benefit from transport improvements.
This study has highlighted that the ways in which businesses might benefit from transport interventions, and the types of interventions that will benefit them most, may vary between urban locations, where interventions which promote increased reliability and efficiency of business operations are likely to provide the most benefit for businesses; and rural areas, where interventions which prioritise improved accessibility, improved speed of travel to destinations, and enhanced provision of infrastructure are likely to be most beneficial.
This research also indicates that many of the businesses who are most likely to anticipate benefits arising from TfNâs proposed interventions are sole traders, or micro & small businesses. Many sole traders and smaller businesses are located outside dense urban areas in the North, and as such, transport strategies should ensure that pan-regional strategic infrastructure improvements are well integrated with more localised transport networks, particularly in sub-urban, rural and coastal areas of the North, to maximise the potential for businesses across the whole region to benefit.
Whilst this research indicates that a sizeable proportion of businesses anticipate benefits arising from TfNâs proposed investments in the transport network, this sentiment is not unanimous. There is therefore potential for TfN to undertake further engagement with the business community, perhaps through Local Enterprise Partnerships (LEPâs), to raise awareness, articulate and promote the potential benefits of transport improvements for businesses across the North.
âMore frequent trains would help more people to reach us. It would help employees get into work, and also give customers the option to come on the train.â Medium/Large business, Yorkshire and The Humber
âRural communities would absolutely benefit from an extension of the rail network and increased services.â Medium/Large business, Yorkshire and The Humber
âFor my small businesses, it would benefit them massively. Weâve got a lot of digital companies in our building, and it would mean they could employ people not only from the local area, but also from other cities. It would be feasible for them to then attract and employ the best.â Medium/Large business, Yorkshire and The Humber
âI think it would open up the talent pool a bit more. We get so many people applying for roles who donât want to do the travelling. We want to employ people from London but they donât want to travel to Leeds every day, they say itâs unreliable, you canât get a seat.â Micro/Small business, Yorkshire and The Humber
âIt would improve the efficacy of the network⌠If you could get between Leeds and Manchester a lot quicker and a lot easier, the Northern Powerhouse would mean something.â Medium/Large business, Yorkshire and The Humber
âLetâs say on an average day, youâve got 10 vehicles on a job. If we were running more efficiently on those roads and they were less congested, we could probably do it on 8 or 9 vehicles, reducing our running costs and then reducing the amount of traffic weâre putting on.â Medium/Large business, North West
Martin Tugwell, Chief Executive at Transport for the North, said:
âThis extremely useful data reveals a number of key prospects and shows the importance of understanding the user perspective. Investment in our road and rail networks, freight links, decarbonisation initiatives and active travel schemes, will make âlevelling upâ real for people and businesses. Better connections will enable easier, more reliable access to new markets and jobs, and instil confidence and resilience for the future.
âIt also emphasises the differing challenges for urban and rural companies; small and large businesses, showing that local insight into what our region needs is an essential piece of the puzzle when making decisions on which projects to invest in at which moments.
âItâs clear that our regionâs businesses have strong ambitions and need the appropriate infrastructure to support them. Through the regionâs 11 Local Enterprise Partnerships that sit on our Board, we are representing our businesses and speaking with âone voiceâ on how they stand to benefit from a sustained channel of investment in transport.
We are using research like this, and a whole host of other important projects underway at Transport for the North, to inform and sense-check transport investment priorities. Our Northern Transport Charter sets out our offer to Government as to how we can work together to use this insight to deliver the New North.