Logistics demand rises as economy picks up

By Rick Pendrous

- Last updated on GMT

Logistics demand is increasing, as the economy revives
Logistics demand is increasing, as the economy revives

Related tags: Transport

A stronger UK economy is leading to increased logistics demand, according to the findings of the Freight Transport Association’s (FTA’s) Logistics Report 2016.

The report, launched at the Commercial Vehicle Show in Birmingham last month, outlined fundamental changes to the way we shop and the impact this is having on goods being delivered.

It showed that online shopping grew phenomenally in 2015, with an average weekly spend of around £816M — an increase of 12.4% since 2014, and double the amount spent in 2010.

“There is no doubt that logistics is changing,”​ said the FTA’s director of policy Karen Dee. “Online shopping is just one example – we have already seen how it has grown, and it is expected to continue to rise in the next few years – with estimated retail spending set to reach £62.7bn by 2020.

‘Parcel of the logistics industry’ 

“Resilience is part and parcel of the logistics industry but all of this inevitably has implications for delivery fleets and skills.”

Dee added that the report highlighted more optimistic economic expectations for the logistics sector. “Domestic activity is expected to increase in 2016 across the top five sectors with retail, distribution and haulage being the top of the list.”

Prosperity, productivity and resilience headline the 2016 report, which outlines how government can support the industry, understand its competing demands, and work more closely with the sector.

Related topics: Supply Chain, Services

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