Insights 11.11.21 Author: Philip Bird

Some emerging trends in the “new” logistics environment

Insights 11.11.2021 Author: Philip Bird

Here’s a snapshot of a few key themes that are emerging in the logistics sector as we move (slowly) out of the pandemic and are nearly one year into Brexit:

•    The skills shortage has been exacerbated by both – everybody’s heard about the HGV driver shortage, but the shortage now extends to warehouse personnel and managerial staff. Vacancies and demand for personnel in the sector are at an all-time high with accompanying wage inflation.

•    Contingency and priority planning are now at the top of the agenda, with manufacturers and retailers working in much closer collaboration with logistics providers to plan and manage for contingencies. This is still developing as evidenced by continued shortage of some items in retail outlets.

•    Logistics is now seen as a “mission critical” service for the economy, akin to utilities. This has flowed through into higher valuations for logistics companies. Each of Clipper Logistics, Wincanton and Xpediator plcs have seen their share price increase by at least 25% this year. Such increases were predicted in our CBW and Logistics UK’s 2021 Interim Logistics Sector M&A Survey Report.

•    The pandemic has produced new types of providers – quick commerce, such as Getir grocery deliveries, for example – which are here to stay.

•    The sector has never been busier or such an exciting place to be!

What next?

If you have any questions regarding these trends and how they could impact you, please get in touch with Philip Bird.