The North West is cementing its position as one of the UK’s most important logistics hubs, as new figures reveal the wider logistics sector contributed £175 billion to the UK economy in 2024.
According to the newly published Logistics Report 2026 from Logistics UK, the sector generated £175 billion in gross value added (GVA) during 2024, an increase of 3.1% compared to the previous year. The industry now employs around 2.6 million people, accounting for approximately 8% of the UK’s total workforce.
While logistics growth is being felt across the country, the North West is increasingly becoming one of the regions driving that expansion, thanks to its strategic location, extensive transport infrastructure and growing warehousing market.
North West Warehousing Market Continues To Expand
Recent data from Savills highlights the scale of logistics activity taking place across the region. The property consultancy reported that logistics take-up in the North West reached 3.8 million square feet during 2025, representing a 24% increase on 2024 levels and sitting 6% above the region’s long-term average.
The North West’s appeal is largely driven by its ability to connect businesses with customers across the UK. Major motorway networks including the M6, M62 and M56 provide fast access to key population centres, while the Port of Liverpool and Manchester Airport continue to play an important role in supporting domestic and international trade.
As businesses increasingly focus on supply chain resilience, many are choosing to locate inventory, fulfilment operations and distribution centres within the region to improve efficiency and reduce delivery times.
Ecommerce Growth Fuels Demand For Logistics
The rise of ecommerce continues to be one of the biggest drivers of demand for logistics and warehousing space.
According to Logistics UK’s latest report, online retail spending reached a record £30.5 billion in 2025, underlining the growing importance of warehousing, fulfilment and distribution networks behind the scenes.
Consumer expectations around next-day and even same-day delivery have transformed logistics from a back-office function into a competitive advantage for many businesses.
As a result, companies are increasingly reviewing how they manage inventory, warehousing and fulfilment as they look to scale efficiently.
Businesses looking to better understand the role logistics plays within modern supply chains can learn more in this guide on what a logistics partner does.
Challenges Remain Despite Strong Growth
Despite the positive growth figures, the sector is continuing to navigate a number of challenges.
The Logistics Report 2026 highlights concerns around rising energy prices, labour costs, global tariff uncertainty and ongoing geopolitical tensions affecting fuel markets.
The report notes that almost six in ten logistics businesses surveyed identified fuel duty reductions as the single most important measure the government could introduce to support the sector.
In response, the Government announced in May 2026 that a planned fuel duty increase would be delayed until the end of the year. Additional measures included a 12-month road tax holiday and reduced red diesel duty rates for rail freight operators.
Industry groups have welcomed the support but continue to call for longer-term measures to improve competitiveness and support the transition towards lower-carbon logistics operations.
Why The North West Is Well Placed For Future Growth
Despite ongoing economic pressures, industry experts remain optimistic about the long-term outlook for logistics.
The North West’s combination of transport links, available warehousing space and access to major consumer markets positions it well to benefit from future growth in ecommerce, manufacturing and distribution.
With logistics now contributing £175 billion annually to the UK economy and employing millions of people nationwide, the region’s role within the sector appears likely to become even more significant over the coming years.
As businesses continue to prioritise faster delivery, supply chain resilience and efficient stock management, the North West’s status as one of Britain’s leading logistics centres looks increasingly secure.
