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UK logistics sector contributes £170bn to economy, report finds

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The UK’s logistics sector generated £170 billion for the economy in 2024 and employs over 8% of the national workforce, according to a new report published by Logistics UK.

The Logistics Report 2025, launched on 4 June at the first annual conference of Logistics UK in London, provides a comprehensive overview of the sector’s performance, drawing on official statistics, industry insight and a survey of more than 500 Logistics UK members.

Despite contributing significantly to the UK economy, the report highlights falling business confidence across the sector, citing economic uncertainty and increased market volatility. Nonetheless, some businesses continued to invest cautiously, particularly in vehicle technologies and fleet management, in line with decarbonisation efforts.

“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,” said Phil Roe, President of Logistics UK.

Recruitment remains a challenge, with skills shortages persisting across the industry. The report notes that while some larger companies are using AI to manage workforce gaps, this is not viewed as a long-term solution.

“We need a continuous training pipeline to ensure we have an appropriately trained workforce,” Roe added.

International trade data included in the report shows that UK exports declined slightly in 2024 to £798.6 billion, while imports rose to £858.2 billion. Forecasts suggest GDP growth will reach 1.2% in 2025.

The report also points to recently announced trade agreements with the United States, India and the European Union as potential opportunities for boosting trade volumes. However, it warns that the benefits of these deals depend on the strength of the logistics network that underpins them.

“The maximum benefits from these agreements will only be realised if the country has a buoyant logistics industry to support the nation’s trading relationships,” Roe said.

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