By Matt Abrams, Commercial Director, AssetGo
As we’re in January and have the year ahead, I wanted to look at the impact technological advancements, regulatory shifts and evolving consumer expectations may have on the UK haulage, logistics and transport industry in 2024. I’ll be taking insights from industry sources to explore the key predictions that may shape the industry.
Green revolution takes centre stage
The push towards sustainability is expected to accelerate in 2024, with a significant emphasis on reducing the carbon footprint of the industry. The ‘Green Revolution’ is not merely a buzzword but a critical aspect that aligns with global environmental goals. The UK government’s commitment to achieving net-zero carbon emissions by 2050 has spurred the development and adoption of eco-friendly technologies in transport.
According to an article by Logistics Magazine titled ‘Getting there: the future of last-mile deliveries in the UK’, logistics companies are likely to invest heavily in electric and hydrogen-powered vehicles, as well as explore innovative last-mile delivery solutions to minimise environmental impact.
Digital transformation drives efficiency
The integration of advanced technologies is poised to revolutionise the operational make up of the industry. According to the ‘The future of freight: Transforming the movement of goods’ article by Deloitte, technologies such as IoT (Internet of Things), AI (Artificial Intelligence), and data optimisation are expected to play pivotal roles in streamlining operations, enhancing visibility and optimising supply chains.
Real-time tracking, predictive analytics and automation will become standard practices, enabling companies to make data-driven decisions and respond swiftly to market demands. The use of digital platforms and cloud-based solutions will further enhance collaboration and communication across the supply chain.
Brexit impact continues to unfold
The aftermath of Brexit will continue to shape the logistics and transport industry in the UK throughout 2024. An article by euronews titled ‘Significant impact of Brexit on the logistics market’ highlights ongoing challenges such as customs procedures, border delays and changes in regulations. However, it also outlines potential opportunities arising from new trade agreements and the ability to reshape supply chain strategies.
Companies are expected to invest in training and technology to navigate the complexities of post-Brexit trade, and partnerships between industry stakeholders and government bodies will be crucial in addressing emerging issues.
E-commerce boom drives innovation in last-mile delivery
The surge in online shopping is reshaping consumer expectations and placing increased pressure on the last-mile delivery segment. The ‘E-commerce logistics market size, share & trends analysis’ report by Grand View Research predicts a continued boom in e-commerce, necessitating innovative solutions for efficient and sustainable last-mile delivery.
Drones, autonomous vehicles and smart lockers are anticipated to become more prevalent in urban areas, addressing congestion and delivery challenges. Collaboration between e-commerce giants and logistics companies will be essential to devise effective strategies for meeting the evolving demands of consumers.
Focus on resilience and risk management
The disruptions caused by the COVID-19 pandemic have underscored the importance of resilience in supply chains. The ‘Supply Chain Risk Report’ by BSI Group emphasises the need for the industry to prioritise risk management and build resilient supply chains capable of withstanding unforeseen challenges.
Companies are expected to invest in technologies that enhance supply chain visibility, diversify sourcing strategies, and establish contingency plans to mitigate risks. Collaboration with industry peers and stakeholders will be crucial in developing comprehensive risk management frameworks.
Focus on talent and training
The technological advancements in the industry necessitate a skilled workforce capable of managing and maintaining sophisticated equipment. In 2024, companies are likely to invest more in training programmes and initiatives to upskill their employees. Moreover, attracting and retaining talent will become a competitive advantage as the industry evolves. Companies that prioritise employee development and create appealing workplace environments will be better positioned for success.
A year of continued change
2024 is poised to be another year of change for the UK haulage, logistics and transport industry. As sustainability, digital transformation, Brexit repercussions, e-commerce trends, risk management and workforce management take centre stage. Those businesses that adapt and leverage technological innovations will not only survive but thrive in this dynamic and competitive sector. As we step into the future, the industry’s ability to navigate these predictions will shape the trajectory of transportation in the United Kingdom.