The heads of 30 leading UK businesses have written to Business and Trade Secretary Jonathan Reynolds MP, urging the government to prioritise the logistics sector in its forthcoming Industrial Strategy. Spearheaded by business group Logistics UK, the signatories - including Amazon, Heathrow Airport, and Tesco - highlight the crucial role of supply chains in supporting all areas of the economy and call for logistics to be represented on the newly formed Industrial Strategy Council.

David Wells OBE, Chief Executive of Logistics UK, emphasised that logistics underpins the success of every industry, ensuring the smooth operation of hospitals, schools, factories, and retailers. He warned that failing to acknowledge the sector’s importance would hinder economic growth. The government’s Industrial Strategy Green Paper has introduced the concept of ‘foundational sectors’ - industries that provide essential support to others - and business leaders argue that logistics must be formally recognised as one of them.

The UK’s ranking in the World Bank’s Logistics Performance Index has dropped from 4th to 19th over the past decade, largely due to congestion, border delays, and inadequate transport infrastructure investment. Wells stressed that reversing this trend through targeted policies and investment could unlock up to £8 billion in annual productivity-led growth, as identified by Oxford Economics.

The business leaders are calling for logistics to have a dedicated voice on the Industrial Strategy Council to ensure the sector is fully integrated into the UK’s growth strategy. They argue that improving efficiency in goods movement is essential to boosting the economy, and that a partnership between government and business would help deliver long-term prosperity.

The UK is once again facing a shortage of lorry drivers, raising concerns about potential supply chain disruptions and empty supermarket shelves. While the industry saw a temporary boost in recruitment following the Covid crisis - driven by wage increases and financial incentives - the number of HGV drivers has now dropped to around 266,000, more than 20,000 fewer than pre-pandemic levels.

A key factor behind the decline is the ageing workforce. According to training provider HGVT, over half of HGV drivers are aged between 50 and 65, while fewer than 2% are under 25. With a large portion of drivers expected to retire in the next decade, the lack of young recruits is set to worsen the shortfall. Meanwhile, rising minimum wages have narrowed the pay gap between lorry drivers and lower-skilled jobs, making the role less financially appealing. In 2011, HGV drivers earned 62% more than the minimum wage, but today that figure has dropped to just 38%.

Long and unpredictable hours remain a major deterrent, particularly for younger workers looking to maintain a work-life balance. Chris Kirk from Maritime Transport noted that new recruits are often put off by being away from home for extended periods, making it difficult to juggle family commitments.

Additionally, the increasing use of surveillance technology, such as in-cab cameras monitoring driver fatigue, has added to frustrations within the industry. Many drivers feel they are being excessively monitored, further discouraging people from entering or staying in the profession. With recruitment slowing and retirements increasing, the industry is bracing for further challenges in the years ahead.