Why these sectors matter
- Logistics underpins the economy: Everything from food to pharmaceuticals depends on efficient transport networks.
- Recruitment powers logistics: Without skilled drivers and support staff, supply chains grind to a halt.
Both sectors are evolving rapidly, shaped by technology, consumer behaviour, and workforce challenges. Let’s explore the key trends.
The recruitment sector: A £43 billion industry
The UK recruitment industry is worth around £43 billion, with 76% of revenue coming from temporary and contract placements – a model that aligns perfectly with logistics businesses that need flexibility for seasonal peaks and urgent deliveries. Source: UK Recruitments Trends 2025: Market Report & Hiring Outlook.
Current trends
- Temporary staffing dominates: Agencies are increasingly relied upon to fill urgent roles, including drivers.
- Technology adoption: 41% of recruiters already use AI, and another 30% plan to adopt it within a year. Source: REC Industry Stats Report 2023/24.
- Candidate scarcity: 53% of recruiters cite talent shortages as their biggest challenge. Source: UK Recruitments Trends 2025: Market Report & Hiring Outlook.
For a Driver Hire franchisee, this means demand for temporary drivers remains strong, but competition for talent is fierce. Building relationships and offering excellent service will set you apart.
The logistics sector: A £142 billion market
The UK freight and logistics market is valued at £142.3 billion in 2025, with steady growth projected at 2.85% CAGR through 2030. Logistics accounts for 63% of freight transport activity, and e-commerce continues to drive demand for delivery services. Source: Mordor Intelligence Report
Key growth drivers
- E-commerce boom: Online retail requires more warehousing and last-mile delivery capacity.
- Technology transformation: Digital trade documents, AI route optimisation, and automation are reshaping operations. Source: Premier Logistics Report 2025.
- Green logistics: Companies are investing in electric and hydrogen-powered fleets to meet sustainability targets. Source: Fleet Point Report 2025.
Challenges
- Driver shortages: The UK needs 40,000 new HGV drivers annually for the next five years to meet demand. Source: RHA Report 2025.
- Labour costs: Rising wages and National Insurance contributions are increasing operational expenses. Source: Envisage Recruitment Report 2025.
What this means for franchisees
Operating at the intersection of recruitment and logistics offers resilience and opportunity:
- Consistent demand: Businesses need drivers every day – especially during seasonal peaks.
- Specialist expertise: Compliance and safety standards make recruitment in logistics a niche skill.
- Technology advantage: Embracing digital tools for candidate sourcing and client management will boost efficiency.
Future outlook
- Recruitment: Expect continued reliance on temporary staffing and increased use of AI for matching candidates.
- Logistics: Growth will be steady, driven by e-commerce, sustainability initiatives, and infrastructure investment.
- Skills gap: Training and attracting younger drivers will remain a priority for the industry.
Final thoughts
Understanding these sectors isn’t just useful – it’s essential. As a Driver Hire franchisee, you’ll be part of a network that thrives on the strength of recruitment and logistics. By staying informed about industry trends, you can anticipate client needs, adapt to market changes, and build a profitable business.