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UK logistics market remains ‘prime’ destination for global investment In the first quarter of 2024, 38% of deals in the sector were cross-border, highlighting the growing interest from international investors. The rise in cross-border activity comes as overall deal activity in the sector fell marginally in Q1. Between January and March 2024, 26 transaction were completed, compared to 27 in the previous quarter. However, total disclosed deal value rose to £372 million, up from £53 million for the previous three months.

Investment in the logistics industry has remained relatively stable in 2024 but what does the future hold? According to figures from Logistics UK’s Business Performance Index, ( Measured with >50 representing an improvement and <50 representing a deterioration) investment in the industry remains relatively stable at 64.0, indicating continued efforts towards growth and development. In the face of challenges over recent months including continued global geopolitical volatility, recession and climate control, the sector should be hugely proud of what has been achieved. David Wells, Chief Executive, Logistis UK said “…if there is a lesson to draw, it is that logistics businesses must continue to invest in their resilience and adaptability.” Without doubt logistics is a vital force within the UK economy, generating £1.3 trillion in revenues in 2022, a huge increase of 25.8% compared to 2021. With the right support and policies from new government, logistics can drive further growth and productivity. Priorities should include: • Ensuring sustainable costs • Infrastructure investment • Support for innovation • Secure transition to a greener economy • Improvements in skills, recruitment & retention • Facilitation of trade The ability of the logistics sector to change and adapt despite the difficulties faced is inspiring, and an indication that the industry is positioning itself well to enter a phase of future expansion and growth. Read The Logistics Report Summary 2024 https://lnkd.in/e9g3B9Fw #logistics #investment #commercialvehicles #resilience #adaptability #growth #productivity #sustainability #infrastructure #innovation #trade

Northern Ireland Executive Needs a Logistics Strategy To realise fully the potential of Northern Ireland’s economy, business group Logistics UK is urging the Northern Ireland Executive to develop and deliver a NI-specific logistics strategy.  In its new report “Logistics: underpinning Northern Ireland’s economy”, Logistics UK highlights the significance of the sector to the economy and identifies five key areas where it believes the NI Executive must focus attention to drive sustainable growth: unlocking investment through public-private partnerships; innovative and integrated infrastructure; a fair transition to a green economy, addressing the skills challenge, and growing trade by building on easements under the Windsor Framework and maximising Northern Ireland’s unique selling point and market access to Great Britian and the EU. Read more including comments from Nichola Mallon, Logistics UK’s Head of Trade and Devolved Policy, here: https://lnkd.in/eup8_FR6

🚛💡𝐂𝐨𝐧𝐠𝐞𝐬𝐭𝐢𝐨𝐧 𝐜𝐨𝐬𝐭𝐬 𝐔𝐊 𝐥𝐨𝐫𝐫𝐢𝐞𝐬 𝐚𝐥𝐦𝐨𝐬𝐭 £𝟏 𝐛𝐢𝐥𝐥𝐢𝐨𝐧 𝐞𝐱𝐭𝐫𝐚 𝐚 𝐲𝐞𝐚𝐫! Logistics UK reveals how long-standing underinvestment has bottlenecked critical routes, impacting the entire economy. With strategic upgrades, the UK could see up to a £8 billion boost annually. Dive into the insights and proposed solutions today!

How the UK October Budget Will Impact the Transport & Logistics Sector The recently announced October Budget has brought both opportunities and challenges for the UK transport and logistics industry. Here’s a quick take on the positive and negative impacts: Positives: - Investment in Infrastructure: Increased government spending on road, rail, and port infrastructure will aid in faster, more reliable routes. Improved infrastructure translates to smoother supply chains and fewer delays for the logistics industry. - Support for Green Initiatives: Incentives for electric vehicles and funding for sustainable logistics tech are a step in the right direction toward carbon reduction goals. Businesses will have more options for adopting cleaner fleets, with reduced costs. Challenges: - Higher Fuel Costs: An increase in fuel duty and energy prices may offset operational savings for businesses not yet fully on the green transition path, impacting freight costs and bottom lines across the industry. -Customs and Compliance: Additional spending on customs controls may imply tighter regulations and increased paperwork, potentially leading to delays and a heavier admin burden. The October Budget shows just how important it is for the logistics industry to stay adaptable. Embracing digital tools, going green, and getting ahead of regulatory changes will be key for businesses. What changes do you think will make the biggest impact?

Logistics UK urges the government to acknowledge the logistics sector as a crucial foundation for economic growth. This appeal is based on the recently published government industrial strategy, which emphasises the need to invest in logistics to enhance the economy. Read more below. #logistics #economy #growth

Logistics underpins the Scottish economy and drives inclusive growth for business and industry, but to realise the power of the sector fully, we are urging the Scottish government to appoint a dedicated minister for logistics and supply chain. In our comprehensive report “Logistics: underpinning Scotland’s economy”, we highlight the significance of the sector to the Scottish economy and identify four key areas where the Scottish government must focus attention to drive inclusive growth: unlocking investment through public-private partnerships; innovative and integrated infrastructure; a just transition to a green economy and addressing the skills challenge. Outlining the vital role logistics plays in the Scottish economy, Logistics UK’s Senior Policy Manager - Scotland, Alexandra Herdman, says, “There are more than 200,000 people employed in logistics roles in Scotland and we have over 10,000 logistics businesses, making, selling and moving the goods that the country’s economy relies on every day. The contribution the sector makes cannot be understated but we also know that there is a significant opportunity for Scotland and the UK as a whole if our industry can realise its full potential. “By prioritising logistics, Scottish policymakers can help deliver productivity gains to help supercharge the UK economy by up to £7.9 billion per year by 2030. Logistics can have a dramatic impact on the growth of the Scottish economy if time and money is invested in facilitating the sector’s efficiency, which is why we are recommending the appointment of a dedicated minister for logistics and supply chain who can deliver across the Scottish government.” The full document can be viewed below ⬇

Deutsche Bahn Sells DB Schenker to DSV for €14.8 Billion Deutsche Bahn (DB) has signed an agreement to sell its #logistics subsidiary, DB Schenker, to the Danish #transport and logistics group DSV for an enterprise value of 14.3 billion EUR. As the new owner of the company, DSV plans to invest around 1 billion EUR in #Germany over the next three to five years. Central functions of the logistics subsidiary will remain in Germany, including the Schenker headquarters in Essen. DSV has also committed to offering more jobs in the country post-#transaction than the current combined workforce of the two organisations. This sale aligns with DB’s Strong #Rail strategy, which emphasises strengthening public rail infrastructure and enhancing climate-friendly passenger and #freighttransport within #Germany and #Europe. DB plans to use the proceeds from the sale to significantly reduce its debt and focus on improving #infrastructure, #rail operations, and profitability over the next three years. Dr. Richard Lutz, CEO of Deutsche Bahn said: “The sale of DB Schenker to DSV marks the largest transaction in the history of DB and gives our logistics subsidiary a clear growth perspective. In line with our Strong Rail strategy, we are concentrating on the public welfare-oriented rail #infrastructure in Germany as well as climate-friendly passenger and freight transport in Germany and Europe. At the same time, the reduction of debt makes a substantial contribution to the financial viability of the Group. The focus over the next three years will be on the structural restructuring of the infrastructure, #railway operations and profitability. In this way, we are creating a stable basis for the continued growth path of Strong Rail and our contribution to the federal government's transport and climate policy goals.” DSV now plans to leverage DB Schenker’s strengths to build one of the world’s largest companies world’s in the field of transport and logistics. Jens H. Lund, Group CEO of DSV said: “We have a clear plan on how we want to become the world's leading transport and logistics company together. Hand in hand and under one roof, the employees of DSV and Schenker will combine our strengths to create a true global market leader in the industry. This strategic merger with significant #investments in competitiveness will secure long-term growth and create #sustainable jobs in Germany.” The sale of DB Schenker follows an open process launched by DB in December 2023, in accordance with EU law. DSV’s offer was deemed the most economically advantageous for Deutsche Bahn. This transaction comes after DB’s earlier sale of its European local transport subsidiary, DB Arriva, in mid-2024. The deal is subject to approval by DB’s Supervisory Board and the German Federal Government, with completion expected by 2025 after regulatory clearances. The agreement also includes social commitments that safeguard jobs for two years after the transaction is finalised.

Every fourth transport and logistics company is planning larger investments according to EFL. Sub-index for the transport, forwarding and logistics sector for the third quarter of this year was 53.8 points. Despite the decline in the value of the indicator, the main areas indicate good prospects, and the EFL Barometer shows that investments will start: https://lnkd.in/dU6fP8i5

Well said Logistics UK - this is a significant detail in the Strategy seemingly overlooked until now. Access to equitable safe and efficient freight networks for everyone is critical if we are to sustain free enterprise in the UK.