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Logistics and Distribution

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For more information or to get in touch to find out how you can support the Logistics and Distribution Cluster please email planforgrowth@wmca.org.uk.

The Logistics & Distribution cluster includes a wide range of activities that enable the storage and movement of goods and people across business and society. Transportation by road, rail and air are significant parts of logistics, assisted by supporting services such as the handling and management of goods, professional services and technology solutions.

The nature of the cluster can be defined by three separate categories:

  • Transport modes: the means of moving goods on transport infrastructures including several types of road-based and non-road-based vehicles (HGVs, Vans, Micromobility vehicles), cargo trains, and aeroplanes.
  • Transport infrastructure: infrastructure required to enable goods to be transported in the first place, for example the highway network, airports, and train stations / rail freight depots.
  • Warehousing and freight management: the process of storing and overseeing the delivery of goods.

The evolution of these activities is facilitated by sustainability, technology, security, regulation and compliance.

Logistics and Distribution is a major enabler of efficient business and an important employer in the region. According to WMCA commissioned research, there are more than 70,000 direct logistics & distribution jobs across the WMCA 7-MET area (Metro Dynamics).

Opportunity

The Logistics & Distribution Cluster in the West Midlands is ideally positioned to lead in the rapidly growing online retail and e-commerce market, with 90% of the UK population reachable within four hours. This advantage is bolstered by access to major transport networks including the West Midlands Key Route Network, West Coast Train Line, and Birmingham City Airport.

The region is also poised to leverage emerging technologies such as automation, AI, IoT, advanced software, and simulations to boost productivity and efficiency in logistics.

Key strategic developments enhancing this sector include:

  • SEGRO's sustainable warehouse spaces
  • The HS2 project
  • The West Midlands Interchange

These initiatives are set to increase logistics capacity and capability while adapting to the needs of the booming online retail market. Implementing urban and last-mile logistics, particularly those under trial in the West Midlands, alongside investing in decarbonization efforts like zero-emission vehicles and rail electrification, are vital growth opportunities.

Strategic focus on logistics, through effective partnerships, regulatory support, and investments, could increase UK GDP by £3.9 billion to £7.9 billion annually by 2030, as estimated by Oxford Economics.

Regional Competitive Advantage

  • Logistics & Distribution keeps the economy moving and catalyses wider economic activity. The cluster delivers for the region’s households, businesses and public services, every day.
  • Recognised as a key 'enabler,' logistics plays a crucial role in supporting high-performing sectors and their supply chains in the region, such as manufacturing and e-commerce. Being the UK’s manufacturing heartland provides strong demand for logistics and distribution in the region.
  • On average, the number of logistics businesses in the West Midlands is one-and-a-half times as much as the share of logistics businesses nationally.
  • The Midlands is a critical part of the logistics centre for the whole of the UK, leveraging its location in the ‘golden triangle’. The West Midlands plays an important role within this, particularly through the West Midlands Key Route Network and West Coast Main Line.

The WMCA has worked at pace with key partners to develop a cluster vision and agreed structures to steer cluster growth forward, and in October 2024 began working with the Connected Places Catapult as the logistics & distribution cluster lead for the region.

Key priorities for the WMCA and the Connected Places Catapult will be to work with stakeholders to deliver interventions which support businesses within the cluster, identify opportunities for investment and support an innovative ecosystem which provides solutions to challenges faced in the logistics cluster.