Logistics companies are investing in automation and digital systems as they prepare for a more technology-driven future
Technology investment is no longer optional for UK logistics businesses as firms race to strengthen cyber security, modernise systems and prepare for greater automation.
More than 77% of logistics companies increased their technology spending in 2026 compared with last year, according to research from Logistics UK and HSBC UK.
Seven in ten respondents expect expenditure to rise again next year, while more than nine in ten businesses across the supply chain anticipate their overall investment will remain stable or increase.
The findings are contained in the Logistics Investment Insight Report 2026, produced with independent research firm Analytiqa.
The study gathered views from more than 100 senior executives working for logistics companies across the UK.
It found that technology spending was increasingly viewed as “non-discretionary” as businesses sought to improve efficiency, strengthen resilience and respond to growing cyber threats.
Cyber security was the most frequently cited technology priority, selected by 20.9% of respondents.
Artificial intelligence and software upgrades followed closely, each identified by 20.5% of those surveyed.
Logistics UK said the results showed that data, automation and faster decision-making were becoming increasingly important to competitiveness.
Phil Roe, president of Logistics UK, said: “Technology adoption in freight and logistics has long been a means of gaining competitive advantage.”
He said technology was now also playing a central role in protecting operations from disruption.
“Our research reflects that technology priorities are heavily skewed towards modernising and protecting core operations, with AI and cyber security now firmly mainstream,” he added.
Despite the strong appetite for technology, confidence about wider investment remains under pressure.
More than 70% of respondents said they had delayed or deferred planned projects during the past 18 months.
Uncertainty over business growth was cited by 19.8%, while 16.3% pointed to uncertainty over Government policy.
Tax rises were identified as the biggest threat to future logistics investment.
More than half of respondents said tax policy was making them less likely to invest, with concerns focused on operating costs, fuel duty and employment taxes.
However, access to finance does not appear to be the main obstacle.
Around 70.4% of respondents described securing financial support as straightforward or easy, while only 2% said it was very difficult.
Almost half believed their finance provider could offer strategic value beyond access to capital.
The findings suggest that businesses have money available but remain reluctant to commit while taxation, regulation and future policy remain uncertain.
Robert Brand, sector head for business services at HSBC UK, said: “Logistics businesses are making technology investment a strategic priority, with AI, cyber security and software modernisation now central to how firms build resilience and drive productivity.”
He said investment appetite remained strong despite continuing global volatility.
“The sector’s evolution is helping to modernise logistics and support growth across the UK economy,” he added.
The report also found broad support for increased Government investment in roads, railways, ports and airports.
Mr Roe said the performance of logistics businesses remained closely tied to the quality of the transport network.
“Logistics is only as efficient as the network it runs on,” he said.
The sector is also calling for infrastructure capable of supporting the transition to lower-emission transport.
According to Logistics UK, many operators are prepared to invest in electric fleets but remain concerned about the availability and suitability of charging facilities.
The report argues that decarbonisation has become more of an infrastructure challenge than a vehicle challenge.
Businesses need charging networks that can support commercial operations without restricting vehicle availability or damaging financial viability.
Logistics UK said a clearer policy environment and improved national infrastructure would allow the sector to invest, raise productivity and accelerate decarbonisation.
The organisation warned that continued uncertainty around tax, regulation and Government policy could prevent planned projects from moving forward, despite strong demand for new technology.