The leaders of 30 major UK businesses have signed a letter to the Business Secretary urging for the logistics industry to be made a cornerstone of the Industrial Strategy.
Led by business group Logistics UK, the 30 firms, which include Amazon, Heathrow Airport and Tesco Stores, are urging Jonathan Reynolds MP to acknowledge the critical role of logistics.
The leaders are clear that making the transportation of goods more efficient is fundamental to growth across the whole economy.
They say that the sector must therefore have a voice in the development of future economic plans by being represented on the new Industrial Strategy Council.
“Nothing in the economy moves without logistics: it provides our hospitals, schools, factories and shops with everything they need, everywhere, every day,” says David Wells, Chief Executive of Logistics UK.
“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, Mr Wells warns.
He says the Industrial Strategy 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.
“Effective logistics is the foundation of any successful economic activity, whatever the industry,” he continues.
“To create an industrial strategy that does not improve the efficiency of the movement of goods would be a huge, missed opportunity, and throttle growth in other sectors."
The efficiency of logistics and the growth potential of the economy are completely intertwined, Mr Wells says.
The World Bank’s Logistics Performance Index has seen the UK fall from 4th to 19th over the past decade.
This is due largely to congestion and delays on UK roads, friction at borders, and a long-term lack of investment in UK transport infrastructure.
"This puts the brakes on growth across the whole economy," Mr Wells concludes.