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New Report Reveals Scale of Energy Challenges in Material Handling Industry

New Report Reveals Scale of Energy Challenges in Material Handling Industry

A NEW joint report published by Consultus Sustainability and the UK Material Handling Association (UKMHA) has exposed a disconnect between energy price anxiety and operational action across the UK logistics and supply chain sector.

The report, titled “The state of energy and sustainability in the UK material handling industry”, reveals that UK material handling businesses rate their concern over volatile energy costs a worrying 8.05 out of 10.  

Despite this, a majority (84%) are operating with no energy management system in place to track or mitigate waste. Furthermore, more than half of respondents (53%) said they hadn’t implemented any energy efficiency measures over the past 12 months. 
 
The findings are based on a survey distributed to UKMHA members, capturing data from the forklift truck manufacturing, supply, dealership and end use industry. The majority are small-to-medium operations (37%), describing their primary business types as dealerships (42%), manufacturers (32%), or other industry-related roles (26%). 

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Natalie Dunbar, head of net zero services at Consultus Sustainability, said: “This survey has shown a worrying trend within the material handling industry that we actively want to address and support. As energy prices continue to spike, efficiency and sustainability measures shouldn’t be seen as an optional extra. In a market where wholesale industrial electricity costs remain locked at roughly 75% higher than pre-2021 levels, rapid decarbonisation and energy management have transitioned from corporate social responsibility into the baseline for financial survival.” 
 
The report also highlights that inaction could be costing companies contract wins, with 68% of respondents sharing that customers now asked about sustainability criteria during procurement and bidding processes.
However, 37% of businesses admit they have no internal resources dedicated to managing sustainability, and 40% of those who do have net zero targets confess to having no strategy to achieve them. 
 
Additionally, 53% admit they have no plans in place to improve their energy efficiency over the coming year. When it comes to accountability, 4% of businesses believe they track their energy usage ‘very well’, while 10% have a dedicated internal sustainability manager on the payroll. 
Natalie added: “Whether it’s cost challenges associated with sustainable measures, or a simple case of feeling overwhelmed and unsure about what steps to take, it’s clear more education is needed for firms to start building energy resilience and protecting margins. 
 
“From zero-upfront funded solar installations to rigorous virtual energy management, taking control of your consumption is the only surefire way to futureproof your operations against an increasingly volatile market. We want to support businesses to manage their footprint, save money and not lose out on client tenders that now have green criteria.” 

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Rob Fisher, CEO of the UKMHA, added: "Rising energy costs remain a serious concern for our sector. Highlighted both by the challenges businesses face and the opportunities for improvement, this report focuses on the needs and feedback from UKMHA members. It also demonstrates a strong business case for action. Energy efficiency and sustainability initiatives can deliver cost savings, operational resilience, competitive advantage, and improved access to investment." 

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To download and read the full report, visit: https://consultus-sustainability.co.uk/ukmha-report/ 
For more information about Consultus Sustainability, visit https://consultus-sustainability.co.uk/ 
For more information about UKMHA, visit https://ukmha.org.uk/ 

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