Logistics Confidence Index

04 July 2019

Barclays and BDO, in conjunction with specialist sector research agency Analytiqa, have produced the latest in a series of surveys to assess confidence and expectations in the UK logistics sector.

More than 100 senior decision-makers within the logistics sector provided their views and insights for the 2019 Logistics Confidence Index. 

The overall Confidence Index has fallen from 52.6 in 2018, to 49.7 this year – a continuation of the downward trend we have seen in recent years. However, this is the first time our Index has fallen below the 50 mark, indicating that, overall, the sector is now more pessimistic than optimistic about the state of the market. 

Despite this, logistics is a strong and resilient sector and remains vital to the UK economy – total revenue for our 100+ survey respondents is £17.2bn – and more than half of respondents say they still expect to increase profits over the next 12 months.

Read the full report below to find out what this might mean for future investment in infrastructure, technology and sustainability; impacts on the workforce; and how the UK logistics sector can continue to add value to customers.

Read the full 2019 Logistics Confidence Index report PDF

  • Key takeaways
    • Our Confidence Index has fallen from 52.6 in 2018 to 49.7 this year, the lowest-ever level and the first time it has slipped below 50

    • More than half (58%) of respondents say current business conditions have become tougher in the past 12 months

    • While 62.4% of survey respondents think business conditions will get more difficult in the year ahead, close to three quarters still say they are likely or very likely to
      make a significant capital expenditure

    • The logistics sector continues to struggle to fill driver vacancies and plans to increase headcount in the next 12 months are at a lowest-ever level

    • While just as many companies report that Brexit-related issues have brought an increase in customer demand as those that report a decrease, nearly half of operators say their business has committed to lower levels of investment or put investment decisions plans on hold because of Brexit

    • Value-added services and building personal relationships with customers are seen as the key to winning new contracts

    • Companies pursuing expansion of service offering or economies of scale will drive continued strong M&A activity

    • System upgrades are the main technology focus, but the sector is showing increasing interest in automation

    • More than two thirds of businesses say they will be investing in sustainable, environmental or ‘green’ projects in the next 12 months.
  • Industry insight: Cygnia Logistics Ltd

    Disruption equals opportunity

    Cygnia Logistics is one of the UK’s leading logistics and fulfilment specialists. Chief Executive Glenn Lindfield explains how a determination to stay agile and innovate routes to market for customers is helping the company to expand. 

  • Industry insight: Agility Logistics Ltd

    Preparing for Brexit

    Graham Larder, who leads Agility's Brexit-planning team in the UK, reveals the thinking behind the company's contingency planning. 

  • 2018 Logistics Confidence Index

    In 2018, the Index was marginally positive at 52.6, suggesting a degree of optimism among competitors. Compare this year’s results with the findings of the 2018 Logistics Confidence Index.


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