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25th February 2020

BPF Report launched to shine positive Light on Logistics Sector

Working in partnership with the British Property Federation and planning consultancy Turley, we have commissioned a report to assess the current economic contribution of the logistics sector to the UK economy and ensure that future development meets the needs of the growing UK population.

 

The logistics sector is set to continue to be a key driver of economic and employment growth and productivity for the UK, according to a report released today by the British Property Federation (BPF) and one of the country’s leading logistics development companies, Tritax Symmetry. The economic productivity of the sector was estimated at £80billion nationally, which has grown over 30% since 2013.

 

The report has highlighted key statistics; online sales, for example, are just one factor driving the extraordinary growth of UK logistics. While around 11 pence in every retail pound currently is spent online with no transactional store involvement, this is estimated to rise to 19 pence in every pound by 2028.

 

The findings build on a previous BPF market report called “Delivering the Goods” which has been used by UK Government policy and decision makers at all levels since it was released in 2015.

 

The latest report highlights the continued and growing importance of the logistics sector to the UK. The economic productivity of the sector was estimated at £80billion nationally, which has grown over 30% since 2013. The number of businesses which operate in UK logistics grew to 93,000 from 56,000 in 2014. This 66% growth is in comparison to the 20% growth of total UK businesses during the same period.

 

The findings show that the sector supports a minimum of 960,000 employees in the UK, an increase of 23% from 784,000 in 2013, compared to the UK average of 10%.

The report also challenged the perception of only low pay job opportunities in the logistics sector.  It showed that median salaries in the sector are around £6,700 higher than the average for all sectors, at £31,600 compared to £24,900. This is an increase from £28,000 in 2014. There are now a number of logistics sub-sectors where the average salary is above £35,000 a year.

Planning Director, Jonathan Dawes commented: “These latest statistics from the BPF demonstrate that logistics is undoubtedly driving huge change and growth in the economy. With logistics productivity forecast to increase by 43% over the next twenty years, reaching £114billion by 2039, logistics needs to be put at the top of the Government’s agenda, particularly when you consider this is 40% higher than the national average growth forecast.

 

“It is encouraging to see logistics operators and developers increasingly commit to and deliver environmental and social measures as part of their schemes for the wider benefit of the local community, and this is at the forefront of Tritax Symmetry’s thinking.”

 

Melanie Leech, CEO, British Property Federation: “I am pleased to say that over the last few years the sector has gone from strength to strength, providing increasing numbers of full-time, good quality jobs and serving as an essential component of UK infrastructure, supporting supply chain resilience across the country.”

 

“However, the sector must not rest on its laurels. There are many further opportunities to create an effective policy environment, both locally and nationally, to allow the sector to flourish. One priority must be to ensure that the sector plays its part in reducing its environmental impacts, including through appropriate site location.”

 

To read the report in full, click on the link to BPF Delivering The Goods in 2020 Report

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