Logistics sector tops UK list for cash-strapped businesses

Transport and storage firms face cash crisis, ONS survey reveals

More than 31% of transport and storage companies in the UK are operating with no cash reserves—more than any other sector—according to the latest figures from the Office for National Statistics (ONS), analysed by home delivery specialist Parcelhero.

The worrying statistic comes from the ONS Business Insights survey, conducted between 15 and 29 June, and reveals that 31.3% of businesses in the transport and storage sector have no financial buffer in place. This sector includes logistics, haulage, warehousing and parcel delivery firms.

Parcelhero’s Head of Consumer Research, David Jinks—who is also a Member of the Chartered Institute of Logistics and Transport—described the results as “very concerning” for the industry.

“From 15–29 June, British businesses were quizzed by the ONS about their cash reserves. The results are very concerning for transport & storage companies.

"Of all the companies that responded and categorised themselves as ‘not permanently stopped trading’, a whopping 31.3% of transport & storage firms had no cash reserves.

"In comparison, only 12.6% of transport companies’ manufacturing partners whose trading status is ‘not permanently stopped trading’ said they had no cash reserves and only 15.8% of retailers,” said Mr Jinks.

The figures also show that only 16.4% of transport and storage firms reported having more than six months' worth of cash reserves.

This compares poorly with 27.9% of manufacturers and 27.1% of retailers. Among comparable sectors, only the construction industry performed worse, with just 11.7% of firms holding more than six months of reserves.

“The story is equally concerning when it comes to assessing how many companies have more than six months of cash reserves.

"Only 16.4% of transport & storage companies reported that they have more than six months of cash in the kitty. Compare that to 27.9% of their manufacturing and 27.1% of retail partners.

"Out of any comparable business sectors, at 11.7% only the construction industry has a lower number of companies with reserves of more than six months.”

The ONS survey also distinguishes between firms “not permanently stopped trading” and those “currently trading”.

In the latter category, 27.1% of transport and storage firms admitted having no cash reserves, compared with 13.2% of manufacturers and 15.9% of retailers.

Only 17.8% of currently trading transport and storage companies reported having reserves of more than six months, again trailing behind manufacturing and retail (both at 27.2%).

“The ONS figures list ‘currently trading’ companies separately to ‘not permanently stopped trading’. The results for this category are similar.

"27.1% of transportation & storage sector firms currently trading admit to having no cash reserves, compared to 13.2% of manufacturers and 15.9% of retailers.

"Likewise, only 17.8% of transport & storage companies were able to say they have more than six months of cash, compared to 27.2% of manufacturers and 27.2% of retailers describing themselves as currently trading.”

Despite the bleak outlook, Parcelhero notes a small sign of progress. In December 2024, the proportion of transport and storage firms without reserves was even higher—37.8% of firms “not permanently stopped trading” and 36.8% of “currently trading” firms reported having no reserves.

“While transport & storage companies are clearly strapped for cash, there is a glimmer of hope in these figures.

"When asked the same question back in December 2024, 37.8% of transportation & storage firms that described themselves as ‘not permanently stopped trading’ said they had no cash reserves, as did 36.8% of companies in this category that described themselves as ‘currently trading’.

Compared to December’s results, it seems the number of transport & storage companies that currently have some cash in hand has improved in the first half of this year.

Nonetheless, compared to other industry sectors, there is still much to do to ensure they have a safety net if the economic news continues to worsen.”

Mr Jinks concluded by highlighting the importance of logistics partnerships with strong, adaptable retail businesses.

“One certainty is that it will be those transport & storage companies that are partnered with retailers with strong in-store and online sales that will ultimately triumph."