The UK’s logistics sector, worth a staggering £170 billion and employing over 8% of the national workforce, is an “unsung hero” of the economy and vital to achieving the government’s growth agenda, according to a new industry report.
Launched today (4 June) at Logistics UK’s first-ever annual conference at the QEII Conference Centre in London, The Logistics Report 2025 underscores the sector’s crucial role in supporting the UK economy – and calls for its formal recognition as a cornerstone of national industrial strategy.
“Logistics is not a background operation – it is a driver of growth and a barometer of economic efficiency,” said Phil Roe, President of Logistics UK. “When logistics thrives, the economy thrives.
"The Logistics Report shows how much the sector contributes, and there needs to be a step change in how logistics is understood, supported and prioritised in national policy making.
"Key to this is recognition of logistics as a foundational sector in the Industrial Strategy, underpinning, as it does, all industry.”
The annual review draws on official statistics, expert insights and findings from a survey of more than 500 Logistics UK members. It reveals a sector balancing resilience with challenge.
While business confidence has dipped amid ongoing economic uncertainty, there are signs of cautious investment – particularly in fleet management and greener vehicle technologies – demonstrating a continued commitment to decarbonisation.
Recruitment remains a persistent issue, with companies struggling to fill key roles. “Larger companies are looking at AI to manage skills gaps,” said Mr Roe.
"But this is not a sustainable solution and we need a continuous training pipeline to ensure we have an appropriately trained workforce.”
In terms of international trade, 2024 saw mixed results. Exports dipped slightly to £798.6 billion, while imports rose modestly to £858.2 billion.
“We are operating in sluggish times – growth is now predicted to be 1.2% during 2025,” Mr Roe noted.
“The recent trade deals with the US, India and the EU hold potential to boost commerce, but their success depends on a strong, efficient logistics sector.
"It is logistics companies that will ultimately be moving goods to and from our trading partners, and an efficient logistics network means faster delivery, lower costs, and increased competitiveness for businesses across every sector.”