Logistics: Key to Government Growth Plans in the UK

Hello, Champions of Net Zero!

In a significant move highlighting the importance of logistics to the UK economy, leaders from 30 prominent businesses have come together to urge the government to place the logistics industry at the forefront of its upcoming Industrial Strategy. This united call to action, spearheaded by the influential business group Logistics UK, includes major players such as Amazon, Heathrow Airport, and Tesco Stores.

The letter addressed to Jonathan Reynolds MP, the Business Secretary, emphasises the urgent need for the government to recognise the pivotal role that efficient supply chains play across all sectors of the economy. The signatories stress that the logistics sector must have a prominent voice in shaping the future economic landscape, particularly as the government prepares to unveil its Industrial Strategy in the coming months.

David Wells OBE, Chief Executive of Logistics UK, articulated the sentiments of the business leaders succinctly: “Nothing in the economy moves without logistics. It provides our hospitals, schools, factories, and shops with everything they need, everywhere, every day.” This statement underscores the vital nature of logistics as the backbone of economic activity, emphasising that without proper support and recognition, the government’s growth plans could be doomed from the outset.

Wells further remarked, “The government’s Industrial Strategy Green Paper rightly introduces the concept of ‘foundational sectors’ that are integral to supporting growth-driving sectors. The case for recognising logistics as a foundational sector is undeniable.” Such recognition is crucial, as it would not only enhance the efficiency of goods movement but also bolster growth across various industries.

Indeed, the link between logistics efficiency and economic growth cannot be overstated. As highlighted by Wells, “Effective logistics is the foundation of any successful economic activity, whatever the industry.” He cautioned that neglecting to incorporate logistics improvements in the Industrial Strategy would represent a missed opportunity that could stifle growth across other sectors.

The urgency of this matter is further underscored by the World Bank’s Logistics Performance Index, which has seen the UK plummet from a commendable fourth place a decade ago to a concerning 19th position. This decline is attributed to various factors, including increasing congestion on roads, delays at borders, and a chronic lack of investment in transport infrastructure. As the logistics sector grapples with these challenges, it is essential for the government to prioritise infrastructure improvements to facilitate smoother operations.

Research conducted by Oxford Economics reinforces the potential benefits of optimising the logistics environment. The findings suggest that by enhancing the policy and infrastructure framework for logistics, the UK could unlock an astonishing £8 billion a year in productivity-led growth. This figure illustrates the vast economic potential that lies in supporting the logistics sector.

The letter’s signatories represent a diverse array of companies, collectively demonstrating the widespread recognition of the logistics sector’s significance. Among the notable names are:

ADM Milling (UK) Ltd – Managing Director, Ashley Fuller
Amazon Logistics – Vice President, Kerry-Anne Lawlor
Ceva Logistics – Managing Director Contract Logistics UKIN, Huw Jenkins
DHL Supply Chain UK&I – CEO, Saul Resnick
DP World – Executive Vice President – Northern Europe, Mark Rosenberg
Evri Ltd – CEO, Martijn de Lange
Freightliner Group Ltd. – CEO, Tim Shoveller
Grid Smarter Cities – CEO, Neil Herron
GXO – Managing Director UK and Ireland, Gavin Williams
Heathrow Airport – Chief Executive, Thomas Woldbye
Howard Tenens Limited – Chief Executive Officer, Jamie Hartles
Indurent – Chief Executive Officer, Julian Carey
Kuehne + Nagel UK Ltd – Managing Director, Pamela Quinn
Logistics UK – Chief Executive, David Wells OBE
Maersk Logistics and Services UK Ltd – Managing Director, Gary Jeffreys
Maritime Transport Ltd – Deputy Chief Executive Officer, Tom Williams
Nestlé UK – Head of Logistics, Richard Hastings
Owens Group – Group Managing Director, Huw Owen
Palletways (UK) Limited – Managing Director, Robert Gittins
Port of Dover – Chief Executive, Doug Bannister
R Swains & Sons Limited – Finance Director, Stuart Rigby
Royal Mail – Chief Executive, Emma Gilthorpe
Rudolph and Hellmann Automotive Ltd – Chief Executive Officer, James Hamilton
Scania (Great Britain) Limited – Managing Director, Chris Newitt
Segro – Managing Director UK, James Craddock
Tesco Stores Ltd – UK CEO, Matthew Barnes
The Malcolm Group – CEO, Andrew Malcolm
TIP-Group – Managing Director for the UK & Ireland, Mike Furnival
Uniserve Group – Group Chief Commercial and Operating Officer, Gary Cobbing
Wincanton – Chief Executive Officer, James Wroath

This impressive coalition of industry leaders reflects a growing consensus on the essential role logistics plays in the broader economy. As the UK government prepares to unveil its Industrial Strategy, the message from these business leaders is clear: logistics must be recognised and prioritised to drive sustainable growth and productivity in the UK economy.

As we move closer to the rollout of this crucial strategy, the hope is that the voices of these influential businesses will resonate within government corridors, ensuring that logistics is given the attention it deserves. The future of the UK’s economic landscape hinges on the efficiency of its supply chains, and by acknowledging this, the government can lay the groundwork for a prosperous and resilient economy.

In conclusion, as we watch this development unfold, it is essential for all stakeholders, from government officials to private sector leaders, to recognise the interconnectedness of logistics and economic growth. The time for action is now, and the logistics sector stands ready to play its part in shaping a sustainable and prosperous future for the UK.

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