The logistics sector generates £170bn for the UK economy and employs 8% of the country’s workforce, according to a new report by Logistics UK.
The trade association’s annual report highlighted the critical role of logistics as part of the UK Government’s growth plans, and called for Whitehall to recognise the strategic role it plays in the nation’s wealth.
Its report of more than 500 members revealed a “mixed picture” with overall business confidence declining compared to previous years, likely due to economic uncertainty and heightened market volatility.
But it also said that there was “cautious business expansion and investment” particularly in vehicle technologies and fleet management, which according to Logistics UK highlights the sector’s ongoing commitment to decarbonisation.
In 2024, the UK’s international trade experienced mixed results, according to The Logistics Report: exports declined slightly to £798.6 billion and imports increasing modestly to £858.2 billion.
Speaking at the launch of The Logistics Report 2025, Logistics UK President Phil Roe said that the report also revealed that recruitment was still a challenge and larger companies were “looking at AI” to manage the skills gap.
Roe added:
”Logistics is not a background operation – it is a driver of growth and a barometer of economic efficiency. When logistics thrives, the economy thrives. The Logistics Report shows how much the sector contributes and there needs to be a step change in how logistics is understood, supported and prioritised in national policy making. Key to this is recognition of logistics as a foundational sector in the Industrial Strategy, underpinning, as it does, all industry.”
“We are operating in sluggish times – growth is now predicted to be 1.2% during 2025 – and as this year’s Logistics Report shows, the value of international trade was essentially the same in 2024 as it was during the previous year.
“This government is rightly focused on growth and the recent announced trading deals with the US, India and the EU have the potential to boost trade. However, the maximum benefits from these agreements will only be realised if the country has a buoyant logistics industry to support the nation’s trading relationships.
“It is logistics companies that will ultimately be moving goods to and from our trading partners and an efficient logistics network means faster delivery, lower costs, and increased competitiveness for businesses across every sector.”
The news comes as Transport + Energy gears up for its first Fleet Electrification Forum, where there will be a specifically be a conversation about logistics and the decarbonisation of the sector. Find out more about the event and speakers here.
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