Revenues for the logistics sector up 19% year-on-year

Logistics businesses added £163 billion to the UK economy and generated just over £1 trillion in revenues – a 19.2% increase on the previous year, according to Logistics UK’s annual Logistics Report.

The report analyses the latest available data (for 2021) and suggests recovery is started to be seen across the sector post-pandemic.

Despite this, 2022 remained a challenging year as chief executive of Logistics UK, David Wells, explained: “While the initial months of 2022 witnessed a resurgence in consumer spending and increased business activity, in the second half of the year the logistics sector navigated a difficult economic climate due to a global energy price shock – triggered by the Russian invasion of Ukraine – in addition to changing trade processes driven by Britain’s exit from the EU and the increasing need to decarbonise.

“Nevertheless, our industry continued to demonstrate its adaptability with the UK trading £414bn exports and £644bn imports in 2022.

“The outlook for overall business performance continues to be encouraging with 77% of survey respondents noting the same or better economic expectations for 2023 compared to 2022.” 

However, as the report highlights, further challenges remain for the sector, particularly decarbonisation and the impact of inflation and the cost-of-living crisis.

Wells continued: “Transport remained the highest greenhouse gas (GHG)-emitting sector across the UK in 2022, with industry calling for reform and investment across a host of policy areas.

“Our sector is embracing the challenge of decarbonisation, with almost all respondents (93.7%) reporting they will invest either the same as last year, or more, in alternative fuels in 2023.

“However, there is still an urgent need for investment and innovation to reduce GHG emissions at the pace and scale necessary to meet net zero targets.

“And, with inflationary pressures continuing to affect prices across the economy, the current turbulent business conditions look set to continue in the next twelve months.” 

The Logistics Report 2023 uses in depth analysis of the latest official national statistics, as well as data collected by Logistics UK’s Industry Survey to provide oversight and analysis of the issues which have shaped the industry over the past year.

To view the report, visit: www.logistics.org.uk/research-hub/reports/logistics-report.