Logistics Performance Tracker

The Logistics Performance Tracker (LPT) is a quarterly survey to improve understanding of the current condition of this vital industry sector. It also gives insights into logistics businesses' financial health and outlook, and trends in the sector over the long term. Logistics UK also uses the findings to inform its responses to consultations on government policy. The full quarterly survey findings are sent to respondents via email.

Most recent tracker results - LPT Q3 2024 results

Headline findings include:

Business outlook and financial health

UK economic outlook scores have fallen slightly to around 4.1 out of 10 in Q3 2024 compared with 4.3 in Q2 2024.
Business outlook scores remain steady around 6.0-6.4, showing stable but restrained confidence in business conditions.
Financial health has been relatively robust, maintaining scores above 7.0 in 2023 and 2024, suggesting resilience in financial performance of logistics companies amidst economic uncertainties.

Business impacts

In Q4 2024, challenges in business planning, paying suppliers, and availability of drivers and staff are expected to be minimal. However, vehicle maintenance staff and goods supply from China and the EU show more pronounced constraints, with availability of vehicle parts and fuel prices facing greater pressures.
Road congestion, delivery times, and the cost of living are expected to experience the most significant negative impact.

Supply chain issues

In Q3 2024, the logistics sector continued to experience challenges, albeit with a slight decrease in severity compared to Q2.
Increases in transport costs were reported by 56.6% of respondents, likely driven by persistent inflation and fluctuating fuel prices.
Supplier delays in receiving parts impacted 47.2% of companies, reflecting ongoing supply chain bottlenecks. Issues like delays in receiving goods (27.5%), extended EU delivery times (26.9%), and additional paperwork (25.6%) saw reduced impact, possibly indicating some stabilisation in customs processes and supply chain adjustments post-EU Exit.
Border disruptions (22.2%) remain a minor but ongoing concern.

Staffing and skills

Logistics staff turnover over the past six months shows different patterns across roles. HGV drivers had a relatively low turnover rate of 2.7%. In contrast, van drivers had a slightly higher turnover of 3.8%.
Fitters, mechanics, and technicians experienced the highest churn rate at 8%, likely due to competitive demand for skilled technical roles in other industries.
There are continuing challenges in filling vacancies for certain roles within the logistics sector, particularly for fitters, mechanics and technicians, where 51.7% of respondents report severe to very severe problems.
HGV drivers also face notable recruitment difficulties, with one-fifth experiencing severe issues. In contrast, roles such as forklift drivers and van drivers are easier to fill, with 47.3% and 38.9% reporting no problems, respectively.

Vehicle maintenance apprenticeships

80% of respondents have not invested in HGV technician and fitter apprentices in the past year.
The top reasons for not investing in HGV technician and fitter apprenticeships included, organisations outsourcing maintenance to third-party providers or dealers, eliminating the need for in-house apprentices. A lack of demand, workshops, or infrastructure was also frequently cited. Recruitment challenges, including difficulty finding suitable or interested candidates, were common. Cost constraints, such as insufficient government funding and high training/mentoring costs, deterred investment. Additionally, concerns over retention and commitment arose, with some apprentices leaving after completing training.

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