UK transport sector turns away from homeworking trend

Transport and storage firms are the least likely among UK business sectors to adopt increased homeworking, according to new figures from the Office for National Statistics (ONS).

The ONS Business Insights Survey found that 4.4% of organisations in the transport and storage category are using, or plan to use, increased homeworking as part of their business model. The sector includes employers in logistics, parcel delivery, haulage and warehousing.

Parcel delivery specialist Parcelhero said the result marks a sharp change since late 2025. In the previous survey, it said, 14.6% of transport and storage firms still embraced increased homeworking.

"Willingness to accept increased homeworking has plummeted in recent months in the transport & storage sector. When last surveyed, in November 2025, 14.6% of transport & storage firms still embraced increased homeworking. By February 2026, when this latest survey was held, this had fallen by around 10 percentage points," said David Jinks M.I.L.T., head of consumer research at Parcelhero.

Wider contrast

The decline leaves transport and storage out of step with several sectors that continue to report higher interest in homeworking. Manufacturing recorded 16.2% and retail 14.9% in the same ONS survey, based on figures highlighted by Parcelhero.

Accommodation and food service, which includes restaurants, pubs and hotels, also reported a higher share than transport and storage at 5.8%.

Information and communication remained the outlier, with 40.6% of firms saying they are using, or plan to use, increased homeworking.

Jinks said the latest result was not only the lowest in any sector but also put transport and storage at odds with allied industries.

"In stark contrast to the transport & storage sector, 40.6% of information and communication companies are using, or plan to use, increased homeworking going forward," he said.

Workforce signals

The same survey indicators point to a mixed picture on labour availability in transport and storage. ONS data cited by Parcelhero shows that 6.6% of firms in the sector reported a shortage of workers, compared with 10.5% of manufacturers and 8% of retailers.

Other measures suggest shortages can still disrupt operations. Some organisations reported pausing trading entirely because of a worker shortage, while others said they had paused parts of their business. Firms also reported using temporary recruitment and being unable to meet demand.

Jinks said there is evidence that reluctance to continue hybrid working could be affecting some results, particularly in areas requiring skilled staff.

He highlighted that 1.7% of transport and storage firms said they had paused trading entirely because of a worker shortage, compared with 0% of manufacturers. A further 1.8% had paused some aspects of their business, 2.5% had recruited temporary workers, and 8.6% reported being unable to meet demand because of staff shortages.

Reasons given

The ONS survey also asked firms why they did not intend to adopt increased homeworking. In transport and storage, the dominant response was that homeworking is not suitable for the company. Parcelhero said 83.1% of firms in the sector selected that option.

Other frequently cited reasons focused on management and organisational issues, including difficulties managing staff remotely, concerns about working culture, and challenges integrating new employees.

"When asked the reason why their business was not intending to adopt increased homeworking going forward, 83.1% of transport & storage firms said it was not suitable for their company. Interestingly, that was a slightly smaller response than manufacturing (86.9%) and retailing (87%). Instead, difficulties managing staff remotely was the next most common reason given for rejecting homeworking by transport & storage firms, followed by a negative impact on working culture and concerns about integrating new staff into the workplace," said Jinks.

Skills risk

Parcelhero linked the low adoption of homeworking to longer-term risks for recruitment and retention in roles that do not require a physical presence. It pointed in particular to administrative functions, where jobseekers can often move between sectors.

"If more transport & storage sector companies continued to abandon hybrid working, the concern is that there could be a sector-wide skills shortage. Looking particularly at administration roles, this means that experienced managers, customer service and IT staff will turn to other industries that offer more flexible practices," said Jinks.

Beyond working practices, Jinks said the transport and retail ecosystem continues to change as online shopping reshapes home delivery and physical retail.

"Working from home is just one of the transformations that technology is enabling across the logistics and wider retail sector. The eCommerce revolution is transforming both home deliveries and the High Street. Parcelhero's influential report "2030: Death of the High Street" has been discussed in Parliament. It reveals that retailers must develop an omnichannel approach, embracing both online and physical store sales," he said.