2022 has been another busy year for business group Logistics UK as it welcomed its 20,000th member and celebrated being crowned Trade Association of the Year at the Memcom Excellence Awards. Throughout the past 12 months, the business group continued to campaign on behalf of its members on key issues across industry.

David Wells
Chief Executive at Logistics UK

In 2022, the sector came together to tackle the ongoing skills shortage, by launching Generation Logistics – a ground-breaking campaign funded by the logistics industry in partnership with the Department for Transport (DfT) – in August. With unemployment levels in the UK at a record low and research showing that 90% of the population has never considered a career in logistics, raising awareness of the employment opportunities in the sector remains a priority.

Measures taken over the past year have relieved the acute phase of the driver shortage; however, a chronic shortage of qualified staff remains and in 2023, the focus must remain on recruitment and retention, not just in terms of drivers but across the entire industry – including HGV mechanics and warehouse workers.

A focus for 2022, decarbonisation will still be a priority for 2023 as net-zero deadlines and phase-out dates draw closer. While numbers of public electric chargepoints increased, ensuring their suitability for commercial vehicles must be prioritised and uncertainty regarding alternative fuels and technologies for heavy goods vehicles must be addressed. Logistics UK will continue to campaign for a fair and equitable way of paying for depot power supply upgrades for fleet charging; Logistics UK members have previously reported costs of over £1 million for upgrading power supplies to a depot, creating additional financial strain at an already difficult time.

Escalating costs remain a key challenge; The Office for National Statistics (ONS) estimates that the Consumer Prices Index (CPI) rose 11.1% in October 2022 and the Bank of England has warned of a prolonged period of recession. Total vehicle operating costs have risen 16.7% for the six months to 1 July 2022 and while rising fuel costs are a critical contributor to this, vehicle maintenance costs have risen by 7.5% and overheads 12.3%. For an industry that operates on low profit margins, this is a concerning increase, especially among small and medium businesses. In November, Logistics UK wrote to Chancellor, Jeremy Hunt, to highlight the needs of industry and the organisation will continue to monitor the issue throughout 2023, working with members and government to seek solutions.

Logistics UK is one of the UK’s leading business groups, representing the whole industry with members from road, rail, sea and air industries.

Logistics UK

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