Logistics UK’s annual report, which canvassed 500 of its members to gauge industry sentiment, has found that the sector is ”cautiously optimistic” for 2024 and beyond, and identifies the areas where it can help accelerate the economy.
The report found that 38% of respondents to Logistics UK’s Industry Survey are anticipating economic improvement for 2024, compared with 2023. However the year has been one of consolidation rather than turning the corner to growth, the report noted.
David Wells, Logistics UK chief executive said, “It is clear that our industry is still operating in challenging conditions, but the report paints a picture of a sector which is consolidating and taking steps to prepare so it can exploit the opportunities that will present themselves when the overall economy improves.
”The £185bn gross value added (GVA) contribution which our sector made in 2022 is in line with the 2021 figure of £160.2bn when other factors are taken into account, so it is too soon to say the economy is returning to growth.
“Contributing £185bn to the UK economy when the sector has been dealing with global geopolitical volatility, new trade processes, a financial recession and pressures on the supply chain caused by changing climate conditions is a great achievement.
”It demonstrates the sector’s resourcefulness and adaptability to keep the UK trading and satisfy the demands of businesses and consumers alike.”
The report also contains the latest Logistics UK Business Performance Index, which reveals overall business confidence and levels of investment remain steady and consistent with 2023.
In particular, the sector is reporting extremely positive sentiment regarding the adoption of new technology, reflecting the importance of continued innovation in the sector.
Wells said: “Our sector is often at the forefront of adopting new technologies as they apply to transport, with new solutions aiding businesses to phase out repetitive tasks or tackle access restrictions imposed for clean air zones.
”Logistics is constantly innovating to be ready for the next challenge, and it is encouraging to see how readily our sector embraces the challenges we face.”
Logistics remains one of the UK’s most significant employers. In March 2023 there were 214,160 logistics businesses operating in the UK, employing around 8% of the nation’s workforce. However, according to the Logistics Report, the types of jobs are changing as automation and technology continue to improve, and the statistics show there has been a sectoral shift, with managerial and directorial roles in purchasing, transport and distribution seeing notable increases.
David Wells continued: “A massive opportunity exists for the next government, whoever is elected, to build on the sector’s stable foundations and create an operational environment that will allow the industry to thrive and deliver economic growth that will benefit the whole of the UK.
”Our sector is entwined in so many aspects of society and business that we need senior representation in the cabinet and we have been pressing all political parties, should they be elected in July, to appoint a dedicated logistics and supply chain minister.
”With appropriate investment, policy changes and the right partnerships with government, it is predicted that the sector could provide a boost of up to £7.9bn per year to the UK’s GDP in productivity gains by 2030.”
Details and summary of the report can be found here.
