Wales at a turning point: logistics infrastructure must lead the charge for economic growth
Aris Syntetos, Professor of Decision Science and DSV Chair of Logistics at Cardiff Business School, has built a global reputation for forecasting research that shapes modern logistics and supply-chain practice, supported by government, funding bodies, and industry.
With this vantage point, he warns that Wales has entered a pivotal phase: without bold and timely decisions in its logistics sector, the country’s economic growth could be seriously compromised.
Wales is at an important crossroads. Over 8,000 logistics businesses employ more than 90,000 people, 6.7% of the national workforce.
The logistics sector is not just a facilitator of trade, but a vital part of the Welsh economy and its future growth. Despite this, industry faces real challenges. Outdated infrastructure, years of underinvestment, and a lack of cohesive policy are holding it back. As global supply chains evolve and competition intensifies, Wales must act decisively to modernise its logistics and supply chain infrastructure, keeping Wales competitive for years to come.
Infrastructure Gaps and Missed Opportunities
The Welsh Government’s budget for 2025–26 promises to “fix the foundations” and “invest in infrastructure,” but does not outline specific strategies for freight and logistics. Logistics UK warns that without a dedicated Welsh Freight and Logistics Plan, Wales risks falling behind in the race for green, efficient, and globally connected supply chains.
The geographical configuration of Wales, including its mountains and vast rural areas, mean freight often bypasses internal routes, travelling through England to connect North and South Wales. The M4 remains the most popular route, but congestion hinders efficiency.
Holyhead Port, an important freight corridor for trade with Ireland, has faced storm damage and operational disruptions, highlighting the vulnerability of key infrastructure and the need for resilient investment strategies.
Market Trends: Demand Exceeds Supply
According to Savills, warehouse availability in Wales has increased by 17% over the past year. However, 94% of available space is Grade C; typically older, in a less desirable location with limited amenities. Additionally, there are not many units currently under construction. This presents a clear opportunity for redevelopment and investment in high-quality facilities.
Transactional activity has dipped sharply for a variety of reasons, including the absence of large-scale deals. Encouragingly, manufacturing companies are returning to the market, signalling a potential resurgence in industrial activity.
Knight Frank’s Q3 2025 LOGIC report echoes these concerns, noting subdued investment trends and the need for regional coordination to unlock growth potential.
Workforce Challenges and Skills Gaps
The HGV driver shortage and broader supply chain labour issues continue to strain the sector. Logistics UK calls for more training and education opportunities, including professional apprenticeships and flexible use of Apprenticeship Levy funds to support workers in remote areas.
Workforce migration is also a concern. Many logistics professionals leave Wales for better opportunities in England due to more robust infrastructure and investment. This talent drain must be reversed through strategic planning and targeted support.
The Role of Universities in Driving Innovation and Reform
To fully unlock opportunities and close systemic gaps, Wales must deepen collaboration with academic institutions such as Cardiff University and other research and innovation hubs.
Cardiff University’s cutting-edge research and state of the art solutions in e.g. forecasting, inventory optimisation, reverse logistics and transportation science have had a major impact in the logistics industry worldwide and Wales should benefit from that too. By embedding academic expertise into logistics planning, Wales can design smarter, data-driven infrastructure strategies, accelerate innovation in green logistics technologies, and shape evidence-based policy reform.
Universities already partner with businesses of all sizes in sectors where reimagining logistics is critical, and they play a pivotal role in workforce development—offering specialised programmes aligned with industry needs and preparing the next generation of logistics professionals, including advancing AI and digital capabilities.
Key Actions to Unlock Wales’s Logistics Potential
Industry leaders are calling for:
- A dedicated minister for logistics and supply chain to coordinate policy across government.
- Long-term infrastructure strategies with 30-year visions and 5-year delivery plans.
- Investment in key freight corridors, including M4 upgrades, Holyhead Port resilience, and electrification of the South Wales Main Line to Swansea.
- Planning reforms to prioritise logistics site development alongside housing.
- Support for SMEs to innovate in logistics technologies and green solutions.
- Flexible training funding to address skills shortages and support workforce development.
Wales has the talent, the strategic location, and the industrial legacy to become a logistics powerhouse but without bold investment, strong collaboration with academia, and visionary policy, the sector will continue to operate below its potential.