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Find all the latest press releases from Paragon Bank.
Analysis of Companies House data*1 shows there has been a 155% increase in businesses registered in that sector since 2013, the second highest growth sector of the period. In total, 163,783 Transportation and Storage companies were registered in the 2019/20 financial year, according to the statistics.
The growth of this sector aligns with a significant increase in online retail over the same period. Government figures*2 show that online sales represented 10.5% of total retail sales in January 2013, increasing to 36.3% by January 2021.
2013- 14
2019-20
% Difference
Public administration and defence; compulsory social security
3,201
9,381
193%
Transportation and Storage
64,277
163,783
155%
Real estate activities
189,438
427,561
126%
Accommodation and food service activities
105,973
229,933
117%
Human health and social work activities
100,969
204,218
102%
Financial and insurance activities
83,019
166,646
101%
Electricity, gas, steam and air conditioning supply
8,197
16,422
100%
Education
60,473
111,888
85%
Wholesale and retail trade; repair of motor vehicles and motorcycles
305,190
553,854
81%
Construction
295,273
531,369
80%
Companies House top ten growth sectors 2013-2020
The number of companies registered in the sector is likely to grow further in the current financial year on the back of surging online retail sales following the first lockdown in March last year. This continues to create huge demand for more delivery firms and SMMT figures*3 showed a 25% increase in the number of 2.5 tonne to 3.5 tonne vans – popular with delivery firms - registered in the year to January 2021.
Figures released by Auto Trader*4 last year, showed that the average prices of used commercial vehicles surged by 10% following the onset of Covid-19. When showrooms reopened after the initial lockdown, demand for commercial vehicles soared, with the number of unique users visiting Auto Trader Vans marketplace increasing by 79% on the pre-pandemic levels.
Dale Trenam, Head of Transport Finance at Paragon Bank, said: “The way we shop is driving significant changes in the Transportation and Storage sector, fuelling demand for distribution warehouses and increasing the number of self-employed courier businesses. It is estimated that every £1 billion of additional online retail spend requires approximately 1.36million sq ft of warehouse space. With UK online sales forecast to rise by up to £67 billion over the next five years, we could see e-commerce drive additional requirements of 92 million sq ft and that creates opportunities for more deliver businesses also.
“Keeping the UK moving is more important in the current climate than ever and we have seen the transport sector step up hugely, from increased and socially distanced school transport, to supporting the Covid-19 vaccine roll out. During 2021 we can expect to see further changes for the sector through improvements to the UK’s road infrastructure and the movements towards more sustainable vehicles.”
For further information contact:
Amy Lange Media Relations Manager Paragon Bank Tel: 0121 712 2526
Head officeParagon51 Homer RoadSolihullWest MidlandsB91 3QJ
Paragon Bank PLC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered in England number 05390593. Registered office 51 Homer Road, Solihull, West Midlands B91 3QJ. Paragon Bank PLC is registered on the Financial Services Register under the firm reference number 604551