The Urgent Call for Logistics as a Foundational Sector
In order to stop further economic decline and unlock £8 billion of productivity-led growth annually, 30 major companies are urging the government to recognize logistics as a foundational sector in its industrial strategy. This is because the UK has dropped from fourth to nineteenth place in the World Bank’s Logistics Performance Index over the last ten years.
Major Companies Advocate for Logistics Inclusion
Amazon, Wincanton, Kuehne+Nagel, and GXO are among the thirty prominent UK companies who have urged the government to include logistics as a fundamental industry in its next Industrial Strategy. The signatories emphasized that effective supply chains are essential to economic growth and ought to be represented on the Industrial Strategy Council in a letter to Business and Trade Secretary Jonathan Reynolds MP.
The Risk of Overlooking Logistics in Economic Planning
The companies, led by the trade association Logistics UK, caution that if logistics are overlooked in national economic planning, it may impede the expansion of several industries.
“Nothing in the economy moves without logistics,” said David Wells OBE, Chief Executive of Logistics UK. “If the government fails to include our sector in its economic plans, the strategy will be set up to fail before it even starts.”
Factors Behind the UK’s Logistics Decline
The letter was sent as worries about the UK’s transportation system’s deteriorating efficiency grew. Road congestion, border delays, and a lack of investment in transport networks have caused the UK to drop from fourth to nineteenth position in the World Bank’s Logistics Performance Index over the last ten years.
Potential Economic Gains from Logistics Investment
Improved infrastructure and policy for logistics may yield £8 billion in productivity-led development annually, according to a report by Oxford Economics. According to business executives, putting logistics at the center of the Industrial Strategy would help stop this slide and increase economic efficiency.
Industry Leaders Demand Representation in Policy Decisions
Several significant haulers and logistics companies, such as Maersk, Scania, and DP World, are among the signatories. They stress the importance of sustained investment in transportation networks to facilitate smooth goods flow. Industry leaders say that having logistics representatives on the Industrial Strategy Council will guarantee that policy decisions promote the efficient flow of commodities, especially as the government’s Industrial Strategy is about to be released.
