KEY FOCUSES AND CHALLENGES

The logistics industry is an essential part of our economy, providing a vital lifeline to households and businesses across these islands. This was brought into sharp focus throughout the pandemic when our industry featured prominently in the media and appreciation of the sector, and its workers, reached an all-time high. It is essential that now this appreciation is not lost, and logistics continues to be recognised, and supported, as an industry that drives economic growth.

Going forward, the logistics industry is facing a number of challenges, and having recently joined Logistics UK myself and having been out meeting members, with many more meetings to come, these are just some of the key challenges I will be focusing on this year.

Ni Protocol

It’s been over three years since the UK’s exit from the European Union and the NI Protocol remains unresolved. Since joining Logistics UK, I have had several meetings with senior ministers and political figures to discuss the Protocol and represent the views and needs of our members, including with the Foreign Secretary, The Rt Hon James Cleverly MP; the Secretary of State for Northern Ireland, Chris Heaton-Harris MP, Minister of State for Northern Ireland, Steve Baker MP; Leader of the Labour Party, Keir Starmer; Taoiseach, Leo Varadkar and French Ambassador, Hélène Duchêne. In each of these meetings I consistently made the strong case that our sector needs, and deserves, an agreed deal on the Protocol that banks and builds on the benefits, and reduces the administrative and cost burdens on businesses trading GB to NI, by maximising Trusted Trader Schemes and digital solutions. I will continue, listening and led by our members, to press both the EU and the UK Government for a negotiated outcome on the Protocol that delivers stability, certainty, simplicity and affordability; and one that is tested with logistics businesses to ensure it works in the real world.

Infrastructure Projects

For far too long, promised infrastructure projects have been delayed. I will continue to push for delivery of these key projects including the A5, A1 upgrade and York Street Interchange. The outcomes from their delivery speak for themselves. The case has been made. They will save lives and grow the economy. Working with members we will also be engaging with the Scottish Government on improvements to the A75, another key strategic transport route.

Skills Shortages

The logistics industry has seen a continued skills shortage and has been working tirelessly to train and recruit a new workforce to plug the gaps and keep our supply chains protected. In August 2022, Logistics UK participated in the launch of a ground-breaking campaign aimed at tackling the industry’s long term recruitment issues called Generation Logistics. This campaign, which has backing from the government, logistics businesses and trade associations, focuses on bringing together the sector to help solve its skills and labour shortages. However, while industry is working hard to seek longer-terms solutions to the sector-wide shortages and recruit home-grown talent, the correct training takes time, and as one of the fastest growing sectors in the economy, a short to mediumterm labour boost is essential. As a result, in December 2022, Logistics UK urged the government in Westminster to add forklift drivers, HGV drivers – of which there is an estimated shortage of 60,000 drivers across GB and NI – and warehouse operatives to the Shortage Occupation List in relation to the Skilled Worker Visa, as well as ensuring mechanics remain on the list. Working in partnership with government departments to address the skills gap, attract new and younger people, male and female, into the logistics industry and retain existing workers – for which, improved driver facilities is vital – will remain a clear focus in the months ahead.

Decarbonisation

With the deadline for reaching net-zero by 2050 moving evercloser, decarbonisation is a high priority for all operators within the logistics sector. Routes to reducing carbon emissions include transitioning to alternatively fuelled, zero emission vehicles (ZEV)s and ultra-low emission vehicles (ULEVs). Implementing electric vehicle (EV) infrastructure is also vital to help businesses transition their fleets over to EVs in line with the 2030 phase out date for the sale of new petrol and diesel vehicles. However, several key concerns remain surrounding charging infrastructure and power supply availability. Figures released by the Department for Transport show that Northern Ireland operators still face some of the worst challenges with the lowest number of public electric charging devices per 100,000 of population. The figure for Northern Ireland stands at 18, which is significantly low when compared to 122 for London, and an overall of 60 for Scotland, and does not also take into account whether they are suitable for commercial vehicles, which need larger bays, increased hight restrictions and longer charging cables. Operators are also facing increased financial pressures as a result of rising inflation and operating costs. Further vehicle acquisition costs and charges for upgrading power supply at depots, as well as depot charge point installation, are creating additional financial strain for operators. The logistics sector is committed and willing to make the transition to net zero but we need clarity from government on alternative fuels, investment in charging infrastructure and financial support and incentives for businesses to make this costly transition.

Overall, there are many challenges within the logistics industry, but there is much progress being made and opportunities to be seized. Although extremely complex, logistics is an adaptable and resilient industry and there is a willingness to communicate among each other, and with government to ensure the best possible solutions are found. I look forward to the year ahead and working with colleagues from across Logistics UK, the wider industry and senior stakeholders to continue making progress and ensuring practical and achievable solutions are found.