26 July 2018
What does Brexit mean
for the logistics industry?
It’s been over two years since the vote on Brexit, yet many
still remain divided over the best plan to take UK forward following its
scheduled departure from the European Union on March 29, 2019.
In the logistics sector, just as among the general public,
opinion is split. But one thing for sure is that there will be an enormous
effect for logistics players on both sides of the English Channel no matter the
Those who are positive about Brexit will suggest that the
future is bright, with the UK able to continue a positive relationship with
Europe but also place itself at the head of global customs arrangements. This
could be the best chance for the UK to establish itself as a global trading
nation, with streamlined processes providing an attractive option for
businesses around the globe.
On the other hand, others will point to the uncertainty surrounding
residency rights for EU workers in the UK. This is a major headache for the
logistics sector which often relies on experienced foreign workers and drivers.
A Brexit deal that places restrictions on the EU nationals to work in the UK
could cause a significant gap in the workforce.
Fuelling the changes
One key question for the logistics sector centres around
fuel. As the UK relies heavily on imported natural resources, Brexit could have
a significant effect on price rises on goods entering the UK from EU countries.
Export costs will then also rise, and higher costs will have a ripple effect
throughout the logistics industry.
Logistics firms will likely pass these costs onto their
customers, but there are new strategies emerging that could ease this scenario.
For example, truck and van manufacturers are looking at
creating vehicles less reliant on traditional fuels, while new steps in
technology are helping logistics firms to become more efficient through route
planning, stock optimisation and better returns policies.
Avoiding a so-called ‘talent drain’ is vital for the
logistics industry. That’s why the government has already suggested singling
out specific sectors for targeted recruitment from abroad.
Reports suggest that around 10% of commercial drivers in the
UK are from other EU nations. That’s a big hole to fill in a short period of
time, especially as many will already be looking for work back on the continent
ahead of the UK’s withdrawal.
These jobs are often seen as unfashionable or not for young
people, but technology is again changing perceptions around these job roles. The
latest devices are designed with the user in mind, allowing them to get on with
their job and provide high levels of customer service without so many
Best of both
In the logistics industry, as with many others, it’s
important that collaboration is prioritised, and progression is encouraged.
Disruption and uncertainty have already played too much of a part in
negotiations, but all sides need the best possible outcome if they want to
If you’d like to find out more about how technology can help
improve your logistics operation over the next year and beyond, contact
TouchStar now at firstname.lastname@example.org
or call +44 (0) 161 874 5050.