The UK logistics sector is worth GB£170 billion to the national economy, according to the leading trade representative body. It supports more than 8% of the UK workforce, and is enabling the UK government’s growth strategy, says Logistics UK. That message is laid out in the latest edition of their “The Logistics Report”. Speaking at the launch of the 2025 report, Logistics UK President Phil Roe said Logistics is not a background operation. He said it is a driver of growth and a barometer of economic efficiency.
Logistics UK was using its presence at the Multimodal 2025 exhibition and trade conference in Birmingham last week to highlight the importance of logistics to the UK economy. It also called for greater recognition in government policy. Phil Roe added that there needs to be a step change in how logistics is understood, supported and prioritised in national policy making.
Sector snapshot reveals cautious outlook
The “Logistics Report 2025”, distributed to delegates in Birmingham, brings together the latest official statistics, industry analysis and member feedback. Over 500 Logistics UK members contributed to the accompanying sentiment survey, which identified a cautious outlook and ongoing investment in low-carbon technologies and fleet upgrades. Birmingham and the West Midlands sit at the centre of the UK’s so-called “Logistics Golden Triangle” – where a cluster of rail and road served distribution hubs have been established.
Rail has been proving an increasingly important partner in logistics operations. For example, DP World’s incentive scheme has seen increasing volumes of containers moved from their Southampton terminal to hub operations in the Golden Triangle. However, road transport remains vital. Despite cost pressures and economic uncertainty, the report highlights signs of steady investment in vehicle technology and fleet management, indicating an ongoing focus on decarbonisation. However, broader business confidence has declined year-on-year, reflecting a general sense of volatility across markets.
Labour shortages persist
One of the more persistent challenges facing the sector remains recruitment. “Logistics businesses continue to face difficulties recruiting people with the right skills to fill key roles,” said Roe. “Larger companies are looking at AI to manage skills gaps. This is not a sustainable solution, and we need a continuous training pipeline to ensure we have an appropriately trained workforce.”
With logistics roles spanning driving, warehousing, management and increasingly, digital and data-related skills, the report reinforces the sector’s call for a joined-up policy from industry and government on skills development and workforce planning.
Trade depends on logistics
The report also includes the latest UK international trade figures. In 2024, exports fell slightly to £798.6 billion while imports rose modestly to £858.2 billion. Roe emphasised the sector’s role in delivering the benefits of new trade agreements.
“We are operating in sluggish times,” he said. “Growth is now predicted to be 1.2% during 2025. 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,” explained Roe. “This [UK] government is rightly focused on growth and the recently 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.”
Sector is still seeking recognition
Logistics UK is one of the country’s largest business groups, representing companies involved in freight transport, logistics and supply chain operations. The UK logistics sector interacts with every part of the economy. The trade body notes the sector employs over 2.7 million people.
The report found that the sector at large seeks more recognition for the part it plays in supporting the UK economy. “It is logistics companies that will ultimately be moving goods to and from our trading partners,” Roe concluded. “An efficient logistics network means faster delivery, lower costs, and increased competitiveness for businesses across every sector.”