The UK transport and logistics sector has experienced some of the sharpest operating cost increases of the past decade, with average business costs rising by 53% since 2015, according to new research from Dojo.
The findings place transport and storage as the second most impacted industry in the UK, highlighting the growing financial pressure facing operators across the sector.
Dojo’s UK Inflation Index analysed changes across ten major cost categories between 2015 and 2025, including energy, business rates, technology, fuel and industry-specific supplies. The research found that average business costs for UK SMEs have outpaced consumer inflation by 11.75%, creating what the company describes as an “inflation gap” that is making profitability increasingly difficult to maintain in 2026.
One of the biggest drivers behind rising costs in transport and logistics has been the growing dependence on technology and software. According to the analysis, technology-related costs across the sector have increased by an average of 103% over the past decade.
At the same time, fuel costs have risen by 90%, while training expenses have climbed by 92%, adding further pressure for fleet operators and logistics businesses already managing tight margins.
The report also revealed that transport and vehicle-related costs have increased by an average of 52% across all UK industries analysed, demonstrating that inflationary pressures linked to mobility and distribution are affecting businesses far beyond the logistics sector alone.
Charlie Ashworth, Head of Research & Insights at Dojo, said: “While operating costs have risen significantly over the past decade, with the right insight into their cost structure, businesses can be better equipped to respond to these pressures.
“For business owners, the opportunity lies in control and efficiency. With labour, energy, insurance and technology costs all contributing to long-term structural change, understanding where your exposure sits is now a strategic advantage. Reviewing supplier contracts, improving operational efficiency, reducing unnecessary overheads, and optimising payment systems can all help protect margins in a higher-cost environment.
“With increases of this scale, businesses must take a more strategic approach to operations and managing their supplies. Understanding the supply chain is critical, and business owners should really look into how much they pay per item and whether there are more competitive suppliers available without compromising quality. Another option is to investigate how usage can be reduced, or processes improved to minimise waste. In times of sustained inflation, careful supply management can make a meaningful difference to overall profitability.
“Businesses that regularly assess their operating model, adapt pricing strategies where possible, and invest in tools that streamline transactions and reduce friction are often better positioned to absorb cost pressures without compromising service or growth.
“The past decade shows that the cost of running a business has evolved. The next decade will reward those who evolve with it.”
The findings underline the growing need for transport and logistics businesses to focus on operational efficiency, supply chain management and technology investment as inflationary pressures continue to reshape the UK business environment.
