Why Logistics is important in today’s economy – Part 2
We want to continue this theme and explore other factors that show why logistics is imperative in today’s UK economy.
Throughout this blog, we will look into how the Government supports the supply chain industry. We will look at its plans for the future, as well as who relies on the logistics industry and the current/future trends.
A boost from the Government
On June 15 2022, the Government launched a huge campaign that aimed at recruiting and retaining a skilled workforce in the logistics industry.
The campaign aims to kickstart logistics careers and create a more environmentally friendly and resilient haulage sector. This is one of the Governments ‘Future of Freight Plans’ to allow a clear strategy and encourage the industry, as a whole, to work closely together; to deliver a seamless flow of freight across the UK’s roads, railways, seas and skies.
Not only is this campaign to create a more resilient and greener sector, but it comes as part of a more comprehensive government effort to help more people to work and support families long-term while growing the economy and addressing the cost of living.
The campaign that has launched includes a £7 million investment. This boosts the uptake of innovative new technology, helping decarbonise and digitalise the sector. These new technologies will support a more cost-effective, reliable and sustainable freight sector.
Transport Secretary Grant Shapps said:
“The pandemic shone a spotlight on the importance of our country’s freight sector. As a proud, free-trading nation, moving goods at home and abroad has always been the backbone of Britain’s economy.
Our 33 interventions to tackle the shortage of drivers means we now have a stable recruitment pipeline and a robust supply chain, and today’s measures will help the sector grow from strength to strength.”
The shortage of drivers is a problem that came to light in 2020, and the Government are addressing this problem.
They have included making 11,000 HGV driver training places available through skills boot camps, injecting a significant and sustainable boost in the number of HGV driver tests available and investing £52.5 million in improvements in roadside facilities and lorry parking.
The industry has started to see a significant improvement already, and it has been recorded by the industry bodies that new HGV drivers are taking and passing their driving tests in record numbers!
From March 2022 to May 2022, the DVSA reported that they carried out over 29,000 HGV tests, which is a 54% increase compared to the corresponding period in 2019, before the pandemic.
The Government recognise the importance of the logistics industry and how we must ensure that it is supported at all times to keep the economy going in the right direction.
Below are key facts about what industries rely on our UK logistics:
- Forestry, mining and farming: 36bn tonne km per year
- Food and drink products: 38bn tonne-km
- Machinery: 10bn tonne km per year
- Mail/parcels: 9bn tonne km per year
With 1.6 billion tonnes of goods transported in and around Britain, it is not hard to understand why the logistics sector greatly contributes to the economy.
What is the future of the logistics industry?
The logistics industry is known to be a fast-moving, crucial sector and an exciting one to work in.
With it consistently developing and adapting to the needs of businesses and customers, 2022 will surely be an exciting year.
Before the pandemic, it appears that the logistics industry was a primarily hidden sector; however, it acted as a vital cog in the wheel of an interconnected economy. A sector that was taken for granted and underestimated. The logistics sector is crucial in today’s economy and is getting the recognition and support it deserves.
The logistics industry has seen lessons learned during the coronavirus pandemic, which had a huge impact on logistics due to technological developments and the ongoing debate about sustainability.
Customers are more demanding than ever; they want to know precisely where their goods are and when it is arriving. Likewise, same-day delivery is now expected from the majority of businesses to achieve these expectations.
The solution for this? To focus on local solutions that can offer reliable and efficient logistics services to suit your and your business’s needs.
Here at Masters, we offer warehousing solutions to distribution to Palletline Services. We have the workforce and the technology to handle any dry, conventional load.
Our Palletline Services offer a thoroughly reliable and efficient service that puts your needs first.