Warehousing: The Backbone of the UK Economy That Government Can’t Afford to Ignore
Karl Montgomery • February 18, 2025
Warehousing has long been the unsung hero of the UK’s supply chain. From enabling the e-commerce boom to supporting the manufacturing sector, warehouses play a crucial role in keeping goods moving efficiently. Yet, despite its undeniable importance, the sector remains overlooked by policymakers—a situation that could have serious repercussions for the UK economy.
In this blog, we’ll explore the vital role of warehousing, the challenges it faces, and what industry leaders can do to secure its future.
The Critical Role of Warehousing in the UK Economy
Warehousing serves as the backbone of the UK’s logistics infrastructure. It ensures goods are stored, processed, and dispatched to retailers, manufacturers, and consumers alike.
Key Contributions:
- E-commerce Growth: The rise of online shopping has increased demand for warehouse space, with e-commerce now accounting for over 30% of UK retail sales.
- Manufacturing Support: Warehouses store raw materials and finished goods, ensuring just-in-time production runs smoothly.
- Job Creation: The sector employs hundreds of thousands of people across the UK, from warehouse operatives to logistics managers.
Insight: The UK Warehousing Association (UKWA) has highlighted that the government must recognise warehousing as a critical part of national infrastructure, not just an afterthought of transport policy.
Challenges Facing the Warehousing Sector
Despite its importance, warehousing faces a range of challenges that threaten its ability to support the UK’s economic growth.
1. Labour Shortages
The industry is grappling with a shortage of skilled and unskilled workers alike. Brexit, combined with changing workforce demographics, has reduced the pool of available labour.
What Can Be Done:
- Invest in Training: Develop apprenticeship schemes and in-house training programmes.
- Leverage Automation: Implement automated storage and retrieval systems (AS/RS) to reduce dependency on manual labour.
- Enhance Working Conditions: Modernise facilities, offer competitive wages, and promote career progression opportunities.
2. Rising Costs
Warehousing costs have surged due to increased energy prices, higher business rates, and growing demand for space.
Strategies for Cost Management:
- Energy Efficiency: Invest in solar panels, LED lighting, and energy management systems.
- Space Optimisation: Use vertical racking systems and dynamic slotting to maximise storage capacity.
- Collaborative Logistics: Partner with other businesses to share storage and transport resources.
3. Lack of Government Support
The sector often falls through the cracks of industrial and transport policies. The UKWA has called for greater government recognition and support, warning that neglecting warehousing could disrupt supply chains.
Advocacy Actions:
- Engage with Industry Bodies: Collaborate with UKWA and similar organisations to lobby for policy changes.
- Demonstrate Economic Impact: Use case studies to show how warehousing contributes to economic stability.
- Push for Planning Reform: Advocate for streamlined planning processes to unlock more warehousing space.
Future-Proofing UK Warehousing
To remain competitive and resilient, warehousing leaders must adopt proactive strategies.
1. Embrace Technology
- Warehouse Management Systems (WMS): Improve inventory accuracy and operational efficiency.
- Robotics and Automation: Deploy robots for picking, packing, and sorting to address labour gaps.
- IoT and Data Analytics: Use sensors and real-time analytics to optimise workflows and predict maintenance needs.
2. Focus on Workforce Development
- Upskilling Programmes: Train existing staff to manage new technologies.
- Diversity Initiatives: Attract a broader talent pool by promoting inclusive hiring practices.
- Employee Retention: Foster a positive culture with recognition programmes and clear career paths.
3. Collaborate with Policymakers
- Join Industry Campaigns: Support UKWA’s efforts to elevate warehousing on the national agenda.
- Participate in Consultations: Provide input during public consultations on transport and infrastructure policies.
- Educate Decision-Makers: Invite policymakers to visit facilities and see first-hand how warehouses underpin supply chain resilience.
Conclusion: Warehousing Deserves a Seat at the Table
Warehousing is far more than just storage—it is a critical enabler of the UK’s economic activity. As the UKWA has rightly pointed out, the sector needs greater recognition and support from government bodies to continue fulfilling this essential role.
By investing in technology, developing talent, and advocating for policy changes, industry leaders can future-proof their operations and ensure that warehousing remains the backbone of the UK economy for years to come.
Picture this: after weeks of interviews, countless email exchanges, and meticulous CV screening, you've finally found the perfect candidate. The offer letter is sent, champagne is on ice—then silence. A few days later, the dreaded email arrives: "Thank you for the opportunity, but I've decided to pursue another option." Last-minute candidate rejections aren't just frustrating—they're expensive, time-consuming, and increasingly common in today's competitive job market. According to recent research by Robert Half UK, 42% of UK professionals have accepted a job offer but continued to interview for other roles. More alarmingly, 28% admitted to accepting an offer only to back out before starting. But why is this happening, and what can recruitment professionals and hiring managers do to prevent these eleventh-hour disappointments?
In today's competitive business landscape, intuition and experience remain valuable, but they're no longer sufficient on their own. UK businesses facing rising operational costs, increasing competition, and a challenging economic environment can no longer afford to make critical workforce decisions based on gut feeling alone. The difference between thriving and merely surviving increasingly depends on how effectively organisations leverage data to optimise their most valuable resource: their people. According to research from the Office for National Statistics (ONS) , UK productivity growth has stagnated since the 2008 financial crisis, lagging behind other G7 nations. With the April 2025 minimum wage increases looming, businesses face growing pressure to extract maximum value from their workforce investments. The good news? The rise of workforce analytics provides unprecedented opportunities to identify inefficiencies, optimise performance, and cultivate environments where employees thrive. As Matthew Taylor, Chief Executive of the Royal Society for Arts (RSA), noted in the UK Government's Good Work Review : "In a world of increasing workplace complexity, the organisations that thrive will be those that measure what matters and act on the insights." This blog explores how data-driven decision making can transform workforce productivity, examining practical approaches that UK businesses are implementing today with remarkable results.
Manufacturing in the UK faces a talent crisis of unprecedented proportions. While the sector contributes over £191 billion to the British economy according to Make UK, it's increasingly losing its most valuable resource—skilled workers—to competing industries. This talent exodus comes at a critical moment when technological advancement demands more specialised skills than ever before. The Manufacturing Skills Gap Survey reveals a stark reality: 83% of UK manufacturers struggle to recruit appropriate talent, while 64% report losing skilled employees to other sectors—particularly technology, logistics, and renewable energy. This isn't merely a staffing challenge but an existential threat to the industry's future competitiveness and innovation capacity. "Manufacturing has an image problem that masks its reality," notes Stephen Phipson, CEO of Make UK. "While other sectors have successfully repositioned themselves as modern, dynamic career destinations, manufacturing continues to battle outdated perceptions that undermine its appeal to today's workforce." The good news? Forward-thinking manufacturers are finding ways to reverse this trend, implementing innovative strategies that not only stem the tide of departing talent but successfully attract skilled workers from other industries. This blog explores how manufacturing can transform its approach to talent acquisition and retention, repositioning itself as an employer of choice in an increasingly competitive marketplace.
The scenario is all too familiar: a key team member hands in their notice, triggering an immediate scramble to fill the position. Job descriptions are hastily updated, recruitment agencies engaged, and hiring managers pulled into urgent meetings—all while business continuity hangs in the balance and costs mount. This reactive approach to recruitment isn't merely stressful; it's strategically flawed. According to the Chartered Institute of Personnel and Development (CIPD), UK organisations take an average of 28 days to fill a vacancy, with specialist roles often exceeding 12 weeks. During this time, productivity suffers, remaining team members face increased pressure, and opportunities are missed. The alternative? Building a proactive talent pipeline—a continuously nurtured pool of engaged, pre-qualified candidates ready to step into roles as they become available. This approach doesn't just reduce time-to-hire; it fundamentally transforms recruitment from an emergency response to a strategic advantage.
The race to deliver ever faster is transforming the logistics landscape. What began as Amazon's competitive edge has evolved into an industry-wide expectation, with same-day delivery rapidly becoming the new standard rather than a premium service. For warehouse and logistics leaders, this shift creates unprecedented operational challenges—none more pressing than how to recruit, train, and retain the workforce necessary to meet these accelerated timelines. According to the UK Warehousing Association (UKWA) , the demand for warehouse space has increased by 32% since 2020, driven largely by e-commerce growth and the same-day delivery paradigm. Yet while physical capacity expands, the human capital challenge grows even more acute. A recent LogisticsUK survey found that 82% of warehouse operators cite staffing as their most significant constraint in meeting same-day delivery demands. This isn't merely a challenge of hiring more people—it's about recruiting differently for roles that have fundamentally changed. As Peter Ward, former CEO of UKWA, notes: "Same-day delivery hasn't just accelerated timelines; it's transformed the very nature of warehouse work, creating new roles requiring different skills and aptitudes than traditional warehouse positions."
In today's competitive labour market, attracting quality candidates for shift-based roles presents a unique challenge for HR professionals. The CIPD Working Lives Report found that 68% of UK shift workers report negative impacts on their personal lives, yet many businesses rely entirely on shift patterns to maintain operations. The critical question becomes: how can organisations recruit effectively for these positions while preserving the well-being and work-life balance that today's workforce demands? Far from being an impossible task, creating attractive shift-based roles requires strategic thinking and innovative approaches to work design. Companies that get this right gain a significant competitive advantage in recruitment, retention, and productivity – all while supporting employee wellbeing.
You've spent hours perfecting your CV, searching for the right opportunities, and submitting applications – yet your inbox remains frustratingly empty. If you're wondering why you're not landing interviews despite your qualifications and experience, you're not alone. Recent research from Totaljobs shows that the average job opening in the UK attracts 49 applications, with only 15% of applicants typically securing an interview. The good news? With a few strategic adjustments to your approach, you can dramatically improve your chances of making it to the interview stage. Let's examine the most common reasons applications fall flat – and the practical steps you can take to stand out from the crowd.
In an era of unprecedented technological change, shifting workforce dynamics, and evolving industry pressures, engineering leadership stands at a critical crossroads. The traditional command-and-control approach that once dominated the sector is increasingly being replaced by more adaptive, inclusive, and technology-enabled leadership models. This transformation isn't merely a trend—it's an essential evolution for companies seeking to remain competitive in an increasingly complex global marketplace.
In the relentless pursuit of efficiency, UK businesses often overlook the subtle yet powerful forces quietly eroding their productivity. While organisations invest millions in cutting-edge technologies and process improvements, the most damaging productivity killers often operate in plain sight—unrecognised, unmeasured, and unaddressed. According to research from the Office for National Statistics (ONS) , the UK continues to lag behind other G7 nations in productivity growth, with output per hour worked remaining stubbornly below pre-2008 financial crisis trends. What's particularly concerning is that this productivity gap persists despite significant investments in technology and equipment. So, what's truly holding UK businesses back? Our analysis of current research reveals three pervasive yet frequently overlooked productivity drains: ineffective shift planning, excessive meeting cultures, and persistent workplace distractions. Together, these hidden productivity killers could be costing your business up to £8,500 per employee annually, according to calculations based on CIPD Workplace Productivity Survey data. Let's examine each of these productivity vampires and, more importantly, how to drive a stake through their hearts.
In UK manufacturing and production facilities, the constant hum of machinery doesn't always match the natural rhythms of the people operating them. As production demands continue to evolve in 2025, the way we structure work hours has profound implications not just for output metrics, but for the humans behind those metrics. According to the UK Office for National Statistics, approximately 3.5 million workers in the UK regularly work shifts, with manufacturing and production industries representing a significant proportion of this figure. Yet despite this prevalence, many operations managers and production directors still rely on outdated scheduling approaches that prioritise machine uptime over human performance. The consequences? Higher turnover rates (manufacturing experiences 15% higher turnover than the UK average according to Make UK's 2023 Labour Turnover Report), increased workplace accidents (37% higher in night shifts according to HSE data), and productivity plateaus that frustrate even the most experienced production managers. Let's explore what the evidence actually tells us about shift patterns, their impact on your workforce, and how to design schedules that serve both business objectives and employee wellbeing.
