Making the logistics industry a vital part of the government’s plan for growth over the next decade could unlock £8bn in productivity, writes Chris Tindall.
In a letter to the business and trade secretary and signed by 30 business leaders, including the bosses of Amazon, DHL, GXO, Maritime Transport and R. Swain, Logistics UK said the forthcoming industrial strategy must acknowledge the critical role that effective supply chains play in all parts of the economy.
It has called for the transport of goods to be made more efficient in order to drive economic growth and representation by the sector on the new industrial strategy council.
David Wells, Logistics UK CE, said: “Our sector must be recognised as a key partner in the government’s economic and business growth plans. Otherwise, the plan for growth will be set up to fail before it even starts.
“The government’s industrial strategy green paper rightly introduces the concept of ‘foundational sectors’ that provide critical inputs and infrastructure to our growth-driving sectors, and the case for recognising logistics as such a sector is undeniable.”
He said a strategy that failed to improve efficiencies within the supply chain would throttle growth in other sectors and represent ‘a huge, missed opportunity’.
“Oxford Economics has found that getting the policy and infrastructure environment right for logistics would unlock up to £8 billion a year in productivity-led growth,” he added.
“With Logistics UK on the industrial strategy council, we would be able to advance a partnership between government and business to deliver growth across the whole economy.”
The government said the industrial strategy will be published alongside its spending review in the spring.
