How Is the Logistics Industry Managing Brexit Preparations?

Since the EU referendum in 2016, businesses throughout the UK have been attempting to make preparations to limit the impact when we leave the EU. Regardless of any actions taken to minimise the negative effects, declining profit margins are severely limiting businesses’ preparations. The 2019 Logistics Report launched by the FTA aims to provide insight into the political and economic situation of the industry, in order to adequately support their members.

What are the Financial Implications of Brexit?

The logistics industry has suffered considerable financial setbacks following the decision to leave the European Union. Profit margins for haulage businesses in 2018 were only 2%, making it increasingly difficult for them to justify making significant financial investments in preparation for a no deal Brexit. The biggest issue cited is that, despite knowing that contingency planning is essential, with no clarity on what post Brexit will look like, businesses are unclear of what measures are required.

The statistics that came out of the FTA’s 2019 logistics report supported this, with 37% confirming that they have taken no actions in preparation, whilst only 17% of members state that they have a plan for a no deal scenario. The inability to confidently plan for the future is directly impacting the growth of the industry. 61% of businesses polled have stated that this uncertainty is the biggest barrier to the growth of their business internationally.

Impact on the Logistics Industry’s Workforce

The uncertainty around leaving the EU without a deal is causing issues for many industries. For the logistics industry, the biggest challenge is a lack of clarity regarding the employment status of EU workers. 80% of respondents highlighted this as their biggest concern, which is of little surprise when we consider that 13% of HGV drivers in the UK are EU nationals. With their continued residency in the UK remaining uncertain, EU citizens working in the UK are becoming increasingly concerned with many returning to Europe.

What is the FTA doing to support members?

With 17,000 members, the FTA is responsible for protecting the interests of many hauliers and attempting to drive change. To combat the industry’s concerns regarding availability of HGV drivers, the FTA is campaigning for amendments to future immigration White Papers. If successful, this would continue to welcome non-UK logistics workers to take up employment in the UK and attempt to address the skills shortage plaguing the industry.

If you have any questions regarding the impact of Brexit on the logistics industry, speak to our team today. Alternatively, if you would like to discuss the options for sourcing drivers or careers in the transport and logistics industry, the Savanna team are here to help. Savanna are a highly experienced driver recruitment specialist for London and the surrounding areas, specialising in Class 1 and 2 driver jobs. To begin the search for your next driving job this summer, contact us on: 0330 335 8367 or email

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