The government's new industrial strategy must acknowledge the strategic importance of UK logistics, the industry has said.
Logistics UK, the country's largest logistics trade association, has submitted its final response to the government’s consultation.
A top priority for it is for the strategy to acknowledge logistics’ role in underpinning the economy and create the policy environment for the sector to thrive and drive growth throughout the economy.
The Industrial Strategy Green Paper has identified eight sectors as having the highest growth-driving potential.
It describes how the final strategy will include policies for subsectors on which these sectors have critical dependencies.
According to Logistics UK, effective logistics is critical to underpin at least five of the highest potential growth-driving sectors, namely advance manufacturing, clean energy industries, life sciences, defence and creative industries.
Logistics UK Deputy Director Policy Michelle Gardner says, “The prosperity of the logistics sector and productivity of the economy are completely intertwined.
"Logistics must be recognised as a foundational sector with policies prioritised to enable growth across the whole economy.
"By establishing the right partnerships, regulations and investment for logistics, the government can deliver productivity gains that will boost the UK economy by up to £8 billion per year by 20301.”
According to Oxford Economics the public sector and other private sector businesses spent 15% of their total input-related spending on logistics services in 2019.
As outlined in Logistics UK’s submission to the government, this shows how critically important the sector is to the UK’s overall economy.
The group also outlined how logistics has a key role to play in helping industry ensure the quality and consistency of its output, expand markets, increase sales and help sectors reduce carbon emissions.
Ms Gardner continues, “Logistics’ case to be considered a foundational sector is clear: transport and logistics must be embedded into the industrial strategy’s objectives, given it will be integral to supporting the expansion of the highest potential growth-driving sectors.
"The sector’s investment in its efficiency, automation and skills base cascades through the economy.”
Logistics UK’s submission also outlines how the strategic importance of logistics and transport to the UK’s industrial future must be reflected in the Industrial Strategy Council.
The business group has recommended that, as the voice of the sector, Logistics UK sits on both the Council and the Forum, as well as the interim Industrial Strategy Advisory Council, to ensure efficiency and productivity gains across the logistics sector are realised.