The government’s ten year industrial strategy plan, published this week, has received mixed reviews from the freight and logistics sector, after the plan revealed that the government does not consider the sector one of the nation’s key industries.
Whilst industry commentators welcomed the government’s clear plan of action to boost the UK’s economy, there was disappointment that the freight and logistics sector is not included in the eight industrial sectors identified by the plan as foundational industries with “the highest potential.”
The document, entitled The UK’s Modern Industrial Strategy, sets out a ten year plan centred around eight foundational industries. These are advanced manufacturing; clean energy industries; creative industries; defence; digital and technologies; financial services; life sciences; and professional and business services
Whilst the freight and logistics sector is excluded from this hallowed circle, the plan does acknowledge the importance of the sector and states: “Working closely with industry, we will deliver a new plan for freight and logistics later this year, so that the sector can continue to play its part in growing the economy.”
The freight and logistics sector will also benefit from a number of spin-offs in the Industrial Strategy’s plan, including a £600m investment to accelerate development of logistics and industrial sites, and the creation of a national Supply Chain Centre, with a brief to improve supply chain resilience and help better co-ordinate private investment across freight corridors and warehousing clusters.
The paper also reveals plans for a Strategic Sites Accelerator to tackle planning, infrastructure and grid connection bottlenecks to help free up land for logistics and advanced manufacturing, and for a Supply Chain Observatory tasked with using the lessons learnt from Brexit and the Covid-19 pandemic to monitor any weak links in the national supply chain.
There is also a pledge to create more fast track apprenticeships across the eight sectors.
Responding to the publication RHA said that with an ongoing HGV driver shortage the road transport sector holds the key to the success of the government’s Industrial Strategy plans.
It applauded the government’s decision to identify manufacturing, energy and construction as key growth areas, but added that road freight and logistics will be fundamental to delivering growth across all sectors.
Richard Smith, RHA managing director, added: “Every solar panel that needs installing, every manufacturing component that needs moving, every construction project that needs materials – it all depends on road freight and logistics.
“The government’s welcome focus on skills investment and apprenticeships is a positive start, but technical excellence colleges must include provision for heavy vehicle driver and technician bootcamps.
“If we’re to get the 200,000 HGV drivers we need in the next five years to keep up with demand, flexible courses like the successful bootcamps are essential.”
He continued: “Each new business and innovative product will need reliable, efficient journey times on safe, modern roads.
“As we outlined in our infrastructure strategy response, delivering a safe and fit-for-purpose strategic road network must be a top priority for Government to meet their targets and grow the economy.
“These are foundations that will determine whether growth plans succeed.”
“The RHA will be monitoring regional and national specifics on skills funding, infrastructure investment, and planning timelines as the strategy is implemented.”
Logistics UK said it was disappointed that the logistics sector has not been identified as one of the foundational industires and said it would continue to work closely with govevernment and lobby for sector inclusion in its plans to create more resilient supply chains.
George Holmes, Aurora capital’s managing director, said the strategy did little for SMEs, particularly in the short term.
He commented: “While the new industrial strategy offers welcome news for large-scale manufacturers, the vast majority of small businesses won’t see a penny.
“For smaller firms also battling high bills, long waits for grid connections and squeezed margins, it’s hard to feel like this is a strategy for them.
“These businesses are vital to local economies and supply chains across the country, yet they’ve been left waiting for the trickle-down.
“The government talks about partnership with business, but the detail shows that focus remains heavily on large corporations.
“Measures like expanding British Business Bank capacity and backing the Made Smarter programme are steps in the right direction, but they won’t offset rising costs or provide the energy certainty many firms need to plan ahead.
“The long consultation periods and 2027 start dates won’t help cash-strapped SMEs make decisions today; they need practical support now.”
