This brief yet insightful article explores where the UK logistics sector will stand in the next 12 months – amid many challenges, such as Brexit, the global pandemic and the Ukraine war.
According to a TMR (transparency market research) report, the current global logistics market, which is valued at $8.1 trillion, will grow to at least $15.5 trillion by 2023. Global volumes, which were estimated to be 54.6 billion tonnes in 2015, will likely reach 92.1 billion tonnes by 2024.
The report further stated that companies are investing in product innovation, business growth and expansion and construction of new facilities, in order to keep up with the competition, at both the local and international level.
An increased demand for flexibility, reliability, easy accessibility and door-to-door service has meant that the logistics sector is buzzing with activity.
Despite all these encouraging statistics, is there a downside to the UK logistics sector?
Well, despite the Ukrainian war and persistent supply chain disruption, there’s likely going to be substantial growth across the UK logistics sector in 2022.
However, passenger transportation in 2021, for instance, suffered from an onslaught of COVID-related restrictions, leading to a rather disappointing year, although in many parts of the world, travel restrictions were eased, which will definitely trigger more logistics traffic.
As for the Ukrainian war, there have been major implications on the shipping sector. As the war carries on, world trade will likely suffer, but this hasn’t stop recovery from continuing in transport and logistics. In fact, the conflict clearly indicates volume growth, particularly in the EU.
Despite some doubt around how the UK logistics sector will fare in the next 12 months, one report revealed that at least 3.4 million sq. metres of warehouse space was planned in 2021 – that’s 60% more than 2020.
It’s worth noting that 2020 was considered by many experts as a “record breaking” year in the UK logistics and industrial sector. Furthermore, the pandemic has become a lot less important in 2022 as opposed to, say 2019 or 2020, when fears were at their highest, as was business uncertainty.
As for 2022, a boom in consumer goods sale is to be expected, driven primarily by private households who have likely put money aside during periods of imposed lockdowns, and now have the greatest need to play ‘catch up’, as well as a much higher propensity to buy.
Many logistics experts believe that the UK sector will be more expensive than other sectors – bottlenecks in transport capacities, increasing fuel prices, a general shortage of skilled workers, etc. means higher costs for companies to cope with.
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The logistics and warehousing sector have seen significant transformation in recent years, driven by technological advancements and evolving consumer expectations. As e-commerce continues to surge, businesses are under increasing pressure to optimize supply chains, reduce lead times, and provide seamless delivery experiences. This has led to a rapid shift in how warehouses and logistics networks operate.
The manufacturing industry is rapidly evolving, with the integration of Artificial Intelligence (AI) and robotics at the forefront of this transformation. As businesses look for ways to improve efficiency, reduce costs, and increase product quality, AI and robotics offer groundbreaking solutions that are revolutionizing the way products are made.
The logistics industry in the UK is undergoing a significant transformation, with sustainability becoming a central focus. One of the key trends driving this shift is the increased adoption of green logistics. As environmental concerns continue to grow, logistics companies are increasingly prioritizing eco-friendly solutions to reduce their carbon footprints and meet stricter environmental regulations.
Operations management in Manufacturing and Warehousing is at the forefront of change, utilising modern technologies as well as disciples to not only address the latest string of operational challenges, but also keep organisations running like a well-oiled machine, all the while maximising both productivity and profitability.
The main goal of any businesses engaged in manufacturing, warehousing, and logistics is to improve the accuracy of order fulfilment, minimise operational costs, and optimise resource allocation. The advent of digitalisation and other disruptive technologies in warehouse management and logistics, which we’ll be discussing shortly, have paved the way for businesses in the sector to increase revenues and improve operational efficiencies across the board – among other things.
Paperless manufacturing is revolutionising the way factories now manage, coordinate, and report various activities through the use of digital tools. Digitalisation or digital disruption has proven to be an effective strategy for more streamlined work order management, for example, helping organisations maintain quality standards, all the while ensuring that they are on top of compliance matters.
Supply chain sustainability refers to effectively managing the social, economic, and environmental factors within an organisation’s supply chain. A very important aspect of this sustainability initiative is recognising and acknowledging the link between a manufacturing company and the broader ecosystem they may be impacting – and then coming up with responsible business practices to make all aspects of the supply chain sustainable.
As we eagerly look to a bright and productive year ahead, the UK’s logistics sector is at a bit of crossroads, so to speak, poised for disruption amid a backdrop of regulatory shifts, technological evolution, and global economic dynamics.
In a recent report released by The Manufacturers’ Organisation, half of the companies surveyed are upping their investment in automation technologies, especially AI and ML, with almost ¾ of companies now spending more openly on automation across multiple technologies and functions – from product design and development to manufacturing and warehousing operations.
Organisations working in high-risk industries like manufacturing, warehousing, supply chain, and logistics, are well aware of the risks and potential hazards their workers face each day. Unfortunately, despite their best efforts, many businesses do not have the appropriate health and safety controls to minimise risk and hazards at the workplace.
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