Logistics operators in the UK will play a part on global spending that would amount to $10.6 trillion by 2020, according to a study.
The analysis showed that transportation investments would account for 70% of the overall expenses. British companies may continue to spend more even if operations become more challenging post-Brexit.
Global logistics firms will likely transition to mobile freight brokerage-type, on-demand deliveries and autonomous technology to improve operational efficiency. Resources, such as drones and delivery robots, will be more common in the future as operators want to solve the so-called last mile delivery challenge.
This challenge represents an estimated two-fifths of the total logistics expenses, which is why logistics providers want to implement new solutions and reduce costs in the process. Demand for automatic skates for trucks and other freight vehicles should also increase, as companies want to streamline loading and unloading operations as much as possible.
While the global industry is set to spend a record amount, British companies face should likewise focus on stabilising their workforce. The UK Freight Transport Association (FTA) said that the uncertainty over the status of European Economic Area (EEA) workers post-Brexit will be detrimental to the sector.
As much as 14% of EEA workers are lorry drivers, while 12% work as van drivers. Those who work as warehouse employees account for 24% of the total workers in this segment. There is a particular need to fill lorry drivers, according to FTA head of skills Sally Gilson. More mainland European workers may leave the UK amid their uncertain future in the country, which could add to the current vacancies of around 52,000 positions, Gilson said.
Investments in new technologies and products are essential for any company. In the UK, spending on new tools and manpower will be necessary to ensure that Brexit’s negative implications would be less noticeable.