Roads minister: logistics is an ‘unstoppable force for economic growth’

The roads minister Lilian Greenwood has said the UK logistics sector is at the heart of the government’s plan for change, and an “unstoppable force for economic growth”, as part of her keynote address to Logistics UK’s inaugural annual conference.

The event, which was held at the QEII Conference Centre in London yesterday, was attended by more than 250 senior delegates from across the industry.

Ms Greenwood acknowledged the challenges the sector is facing, especially in the areas of decarbonisation and skills, and said the government would continue to champion Generation Logistics, the awareness programme designed to attract new talent to the sector.

Emphasising the government’s keenness to work with the sector with a spirit of collaboration, she ended her keynote by thanking the industry for “keeping the wheels turning, driving economic growth and improving lives”, and assured delegates that “we are listening”.

Opening the conference, Logistics UK president Phil Roe outlined the sector’s critical contribution to the UK economy.

“Logistics is not a background operation,” he said. “It is a driver of growth and a barometer of economic efficiency. When logistics thrives, the economy thrives.

“The minister’s address at our conference today shows the government is keen to work with the sector but there still needs to be a step change in how logistics is understood, supported and prioritised in national policy making.

“Key to this is recognition of logistics as a foundational sector in the Industrial Strategy, underpinning, as it does, all industry.”

Logistics UK also used the event to launch The Logistics Report 2025, its annual review of the sector, reflecting on the past year and identifying future trends. It combines official statistics, expert insight and the findings of Logistics UK’s Industry Survey, which canvassed more than 500 members to gauge industry sentiment.

Among the report’s findings is that the UK logistics sector experienced mixed economic performance last year.  While contributing £170 billion to the UK economy in 2023 and employing eight per cent of the workforce, in 2024 the sector saw a fall in the number of businesses and a slight drop in confidence, in the context of economic pressures and rising operational costs.

This has led to businesses’ current cautious approach to wage increases and expansion, the report says, while skills shortages remain a perennial issue, with difficult-to-fill technical roles posing a particular challenge.

A summary and details of how to obtain the full report can be found here.