The UK logistics industry arrives at Multimodal 2026 at an important time. After years of post-pandemic disruption, inflationary pressure and geopolitical turbulence, the sector is not so much looking for recovery as it is a recalibration. Costs remain high, global trade patterns are shifting under the weight of US tariff policy, and the demands placed on supply chains, from sustainability targets to automation investment, are ever-present.
At the same time, however, there is real momentum in the UK logistics sector. The take-up of large logistics space rose 13% year on year in 2025, according to Knight Frank's Industrial and Logistics Outlook 2026 with demand for modern, well-specified facilities strong.
Manufacturing also appears to be returning to UK soil. And the sector's long-term role in the UK economy, contributing £170 billion in GVA and employing 2.7 million people, according to Logistics UK's 2025 Report, is increasingly well understood by government and business alike.
This complex context of push and pull is difficult to understand, but given the numbers at the start of 2026, are there signs of optimism on the horizon? Join us as we dive into the facts, figures, and feelings around UK logistics.
Demand is strong, but increasingly selective
The headline numbers for UK logistics are encouraging. UK logistics space take-up reached 40.8 million sq ft in 2025. But as Newmark's market analysis makes clear, the detail matters more than the headline. Demand is not spreading evenly across the market; it is concentrating in assets that offer high specification, operational efficiency and long-term relevance.
Furthermore, according to Savill’s Report, the UK posted 15% growth in take-up and 13% growth in investment volumes in 2025, putting it firmly among the top performers alongside Poland and Italy.
Occupiers are prioritising fewer, better buildings over network expansion. Portfolio consolidation is accelerating. The average transaction size rose 8% year on year in 2025, a clear signal that shippers and 3PLs are thinking in terms of quality rather than quantity. Older stock, particularly in less strategic locations, is finding it increasingly difficult to compete, even at a rental discount.
For businesses across the UK supply chain, this creates an immediate challenge: how do you identify the solutions? And who do you partner with to keep you on the right side of that divide? The answer is different for everyone, but hopefully, if you don’t find inspiration here, you almost certainly will at Multimodal 2026.
Efficiency has become the defining priority
Across every corner of the UK logistics industry, efficiency is the word that comes up most consistently. Rising operating costs, including the employer National Insurance increases introduced in April 2025, are squeezing tight margins. The Logistics UK report notes that the sector operates on margins of just one to three per cent, which makes any cost increase damaging.
The response has been to invest in improvement rather than expansion. Fleet management systems, vehicle technologies and automation are the investment priorities cited most often by logistics businesses for the coming years. AI-driven demand forecasting, smart warehousing and cross-docking are moving from aspiration to reality for businesses of all sizes.
The future of logistics is being shaped by automation and AI
This naturally leads to the question of technology and how it will reshape UK logistics over the coming years. We may be at the edge of seeing this play out in real life (no more theories) as automation and AI are already changing the day-to-day reality of warehousing, fleet management, demand planning and deliveries. The future of logistics, in practical terms, means AI systems predicting demand with greater accuracy, robots handling repetitive warehouse tasks, and smart routing tools cutting fuel use and delivery times.
Mobile PPL noted this in their trends for 2026, highlighting how companies that adopted AI for inventory management have cut stockouts by 30%, while automated picking systems have reduced warehouse picking times by up to 50% in some operations. These are not marginal gains.
As such, we expect to see this technology and similar exhibits on the Multimodal show floor where technology providers can meet potential customers, logistics directors and operations managers who need these solutions most. For visitors, it is where you can test, compare and evaluate what is actually available, from automation-ready warehouse equipment to TMS platforms and AI-powered freight tools, under one roof.
Manufacturing reshoring is driving a new kind of demand
Another trend for 2026, and one no doubt sped up by geopolitics, is the shift to the return of manufacturing to British soil. Reshoring and nearshoring activity, driven by a desire to reduce exposure to global supply chain risk, has been building steadily. Defence-linked requirements are also expanding. Knight Frank identifies manufacturing as having accounted for 32% of logistics space taken in 2025, a share that is growing.
This matters for the wider UK logistics sector because manufacturing demand is different in character from e-commerce or retail logistics. It requires higher capacity (energy and space), more flexible layouts and, in many cases, facilities designed from the ground up for a specific occupier. The supply of such buildings is constrained, and the gap between what is available and what is needed is pushing occupiers toward design-and-build solutions.
Global trade: more uncertainty, more reason to stay connected
Logistics has long been at the whim of politics, and this year is no different. The geopolitical backdrop to UK trade in 2026 is not a comfortable one. US tariff policy has created significant disruption to global trade flows and, by extension, to the UK logistics businesses that move goods across borders. The Logistics UK report documents the scale of the impact: container shipping rates on the Shanghai to Long Beach route fell by more than 30% following tariff announcements, while Vietnam saw rates rise by more than 40% as US importers sought alternative suppliers.
For UK logistics businesses, this volatility creates both risk and, potentially, opportunity. The UK-US trade deal agreed in May 2025 offers some protection for key export categories, but much remains unresolved. Longer term, the disruption is expected to accelerate the regionalisation of supply chains and increase interest in nearshoring, driving further demand for domestic logistics and UK-based freight services.
Air freight has been a rare bright spot in the international picture. According to IATA data cited in the Logistics UK report, global air freight demand rose 11.3% in 2024, reaching record volumes, partly driven by companies accelerating shipments ahead of tariff implementations. The structural role of air freight in high-value supply chains remains firmly intact.
In an environment this complex, the ability to access market intelligence, compare freight options across all modes and build relationships with the right partners is more valuable than at almost any point in recent memory.
Sustainability: the gap between ambition and delivery
As mentioned at the start, sustainability is never far from any list of predictions. Decarbonisation remains one of the UK logistics industry's most pressing and most difficult challenges. Domestic transport accounts for 30% of all UK emissions in 2024, with HGVs and vans each responsible for around 16% of that figure. The path to net zero by 2050 is clear in policy, but considerably less so in practical ideas.
The Logistics UK survey found that more than one in three respondents (38.7%) are not confident the sector will decarbonise by 2050. Cost remains the single biggest barrier to investment in alternative fuels. EV has long been seen as an alternative, but the EV charging infrastructure required to support electric HGV fleets at scale does not yet exist in sufficient volume. And yet, the commitment is there. Almost a third of logistics businesses plan to increase their sustainability investment.
2026: Signs of change at Multimodal
Multimodal has grown consistently since its launch in 2008, and the 2026 edition is its most ambitious yet. For the first time, Warehouse and Yard, formerly IWLEX and YARDX, will co-locate in an adjacent, connected hall, bringing warehousing and yard management solutions under the same roof as the main show.
Along with this addition, we are also bringing eDX (eDelivery Expo) to the same event. For over a decade, eDX has equipped online retailers and brands with the tools and insights to streamline last-mile logistics. For 2026, it’s bringing that expertise to the heart of the UK’s most comprehensive logistics event.
The connections don’t end there, with this also hosting a free shuttle service that will connect the NEC to the Road Transport Expo at Stoneleigh Park, running simultaneously that week.
Together, these events form UK Logistics Week, a moment when the West Midlands becomes the centre of the UK logistics industry, drawing professionals from across the supply chain into one place.
Why it matters for your business
UK logistics in 2026 face a rare combination of pressure and possibility. Costs are rising, trade is uncertain, technology is advancing rapidly, and the requirements for success are becoming more demanding. At the same time, it looks like there is opportunity too.
The businesses that perform well in this environment will be those that make better decisions: about space, technology, partners, routes and modes. Those decisions are made more effectively when you have the right information and the right connections.
If you’re interested in attending or exhibiting at Multimodal, then visit our website for more information.
Multimodal 2026 runs from Tuesday 30 June to Thursday 2 July at Hall 4, NEC Birmingham. Registration is free for businesses in transport, logistics, supply chain and cargo.
