The UK warehousing sector is considerably broader than the online retail market often used to represent it. Analysis for the UK Warehousing Association by consultancy Aricia estimates that around 760,000 people work in warehousing—well above the 440,000 recorded by the Office for National Statistics.
Aricia says the ONS total misses warehouse roles located within retail and manufacturing businesses. Even using the lower official figure, warehouse employment has risen by 40% since 2011, compared with 14% growth across UK employment.
Demand from e-commerce has contributed to expansion, but research by Savills and the UKWA in 2024 found that third-party logistics providers occupied more warehouse space than online retailers. High-street retailers also accounted for more space than online businesses.
The distinction has important policy and investment implications. Measures aimed at large online retailers can affect warehouses serving shops, manufacturers, pubs and other businesses. Operators also need room to invest in handling equipment, digital systems, automation and workplace safety. Still Materials Handling is among the suppliers serving these operational requirements.
Logistics UK estimates that logistics generates £175 billion in annual gross value added and enables more than £1 trillion in international trade. It says the sector could support a further £8 billion in annual UK economic growth.
Business rates, National Insurance and planning decisions therefore reach beyond individual warehouse companies. They influence the capacity of the wider supply chain to improve productivity and resilience. Treating warehouses as critical economic infrastructure, rather than a single-sector tax target, would better reflect their role in the UK market.
