The UK’s transport and storage sector has emerged largely unscathed from the economic storm dubbed ‘Awful April’, according to the latest Business Insights survey from the Office for National Statistics (ONS).
Despite widespread concerns about rising business costs — including increases to employer National Insurance contributions and a 6.7% hike in the National Living Wage — logistics, warehousing, and delivery firms appear to have weathered the financial pressures better than expected.
‘Awful April’ was tipped to be a bruising month for British businesses, with additional challenges such as higher business rates for some firms and fresh US tariffs announced by President Trump.
Many analysts also warned that falling consumer confidence — caused by rising energy prices, council tax, and water bills — would further dampen business turnover.
However, industry experts say the transport and storage sector remained resilient through the turbulence.
David Jinks M.I.L.T., Head of Consumer Research at international delivery firm Parcelhero, said: “Following the long-heralded increases in employer NI contributions and the National Living Wage, all eyes were on labour costs this April.
"British businesses were asked: ‘Which of the following challenges, if any, are currently impacting your business's turnover?’ Only 16.1% of transportation & storage firms who responded between 19 April and 18 May said labour costs had impacted their turnover.
"That’s significantly fewer than the 26.3% of manufacturers and 22.1% of retailers who said labour costs were impacting their businesses.”
While just under 12% of transport and storage companies reported an increase in turnover during April — less than the 14.7% of manufacturers and 19.7% of retailers — they were also less likely to report a drop. Only 19.8% saw turnover fall, compared to 31.2% of manufacturers and 25.4% of retailers.
According to Jinks: “By that measure, transport & storage firms escaped Awful April relatively unscathed.”
When asked about broader economic uncertainty, only 18.5% of transport and storage businesses cited it as a concern — in stark contrast to the 33.6% of manufacturers and 39.8% of retailers expressing similar worries.
Looking ahead to June, the outlook remains positive. A majority (61.7%) of transport and storage firms expect turnover to stay steady, and only 9% anticipate a drop.
These figures are again more optimistic than manufacturing and retail, where only around half expect no change, and up to 20.4% foresee further declines.
Even business rates — another potential pain point in April — seem to be having limited impact.
Just 1.8% of transport and storage companies highlighted them as a concern for the coming month, versus 2.5% of manufacturers and 8.6% of retailers.