Transport and logistics is one of the world’s biggest industries. The sector is made up of six main areas: warehouses, storage, sea shipping, road, aviation and railway. The UK logistics industry is worth over £96 billion to the UK economy each year and employs around 2.3 million people in over 188,000 companies.
Approximately 8% of the UK workforce is employed in logistics. The UK’s road transport industry is the biggest in Europe. The trucking industry is set to grow by 21% in the next 10 years. Wholesaling employs the greatest number of people in logistics with 41% of the workforce. The postal service is the second largest logistics employer with 14% of the workforce, while driving (road haulage) accounts for 13% of the workforce. A quarter of the value of all transported goods in the UK is carried as air freight.
The UK passenger transport industry contributes approximately £23.6billion to the UK’s GVA. Passenger transport employs around 735,000 people in the UK and is critical to the UK economy. Four sectors within passenger transport dominate the industry, they are: bus and coach, taxi and private hire, rail, and aviation. Together they account for 88% of the passenger transport industry.
There are many factors that affect the industry and that will continue to have an impact in the future. They include: environmental issues, sustainability, IT, state of the economy, fuel costs or a decrease in the world supply of fuel, changes in the sourcing of overseas products, social inclusion, global tourism trends, legislation and funding.
Future trends The main issues within transport and logistics are concerned with reducing congestion and environmental impact, supporting the economy, improving accessibility and public transport, and improving safety and security.