Why logistics is important in today’s economy

  • Why logistics is important in today’s economy

    Did you know…?

    The logistics sector contributes £127 billion Gross Value Added to the UK economy, and there are 205,380 logistics enterprises in the UK. Not only does the logistics industry contribute so much to the economy, but it also provides 1.7 million people with a job.

    It’s not hard to see why the logistics industry matters so much to the UK economy.

    Not only is logistics vitally crucial to the distribution industry, but it has also made distribution prompt and efficient. In Logistics UK report, they stated that HGVs moved 1.3% more goods in 2019 than 2018, with the amount of goods lifted increasing by 2.4%.’ and that 486.1 million tonnes of freight were handled by UK ports in 2019, up 1% on the previous year.’

    During the lockdown restrictions, the Freight operations had been affected, leading to efficient adaptations of road, rail and cargo-flight-specific air freight. Road and rail were used the most and had a massive increase during these times.

    According to the Logistics UK report, in 2019, 486.1 million tonnes of goods were handled by the UK’s major ports; this is a 1% increase from the year before. This shows that many companies rely on transport and logistics to keep their business strong.

    Logistics is an integral part of the supply chain.

    It is estimated that 98% of all food and agricultural products and 98% of all consumer products and machinery in Great Britain were transported by road freight. Around 89% of all goods were moved directly by road. Road freight is the most extensive transport network out of them all. It provides convenience and flexibility for door-to-door delivery and supports the ever-growing e-commerce sector.

    Another reason why the logistics industry is important in today’s economy is that globally the industry is being said to be worth $8.6 trillion.

    The logistics industry has seen immense growth, and in less than a decade, the 3PL market has expanded by 29%. This shows an increase in jobs for transporters, warehouse facility owners, and brokers in freight-related jobs.


    The UK logistics sector is vital for the country’s financial success, contributing 10% to the UK non-financial business economy. Despite the pressures brought on by the COVID-19 pandemic, the industry has adapted well. The proportion of businesses in the transport and storage sector with more than six months of cash reserves rose after April 2020 before stabilising.

    Fleet investment intentions, the number of goods vehicle operator licenses and new HGV and van registrations declined during 2020, with the leasing of additional warehousing distribution premises expected to reduce in 2021. However, progress with vaccinations and clarity over Brexit is expected to have a positive impact on businesses.

    If you have any questions about our particular logistics services, particularly 3PL, then please get in touch with our Logistics team on 01353 648222.

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