Freight Transport Association Ireland (FTAI) has launched its seventh annual Manager’s Guide to Distribution Costs (MGDC), a definitive benchmark for logistics leaders and service procurers seeking to understand the real cost drivers shaping Ireland’s supply chains in 2025.
Speaking at today’s launch, FTA Ireland’s Chief Executive, Niall Cotton, said: “Cost intelligence is now a strategic asset. This year’s MGDC shows how tight labour conditions, rising input costs and cashflow pressures are converging to squeeze margins. The report equips operators and their customers with credible evidence to price services sustainably, plan investment, and protect resilience as the sector accelerates decarbonisation.”
Key findings from the 2025 report
Labour market pressures: Unemployment stands at 4.7%, signaling near full employment and intensifying recruitment challenges. Driver vacancies now take an average of 29.8 days to fill, with 64% of businesses reporting operational impacts and 71% citing constraints on growth.
Wage inflation vs. rate increases: Average driver wages rose to €47,349, and 83% of employers granted average pay increases of 5.5%. However, average haulage rates increased by just 4.2%, while overall business costs rose by 7.6%, compressing margins to an average operating profit of 6.8%.
Sustainability challenges: 84% of respondents have a sustainability policy, yet 82.4% cite financial cost as the primary barrier to implementation.
Maintenance costs: Average maintenance cost per vehicle reached €9,937, up 11% year-on-year.
Cashflow headwinds: 46% of fleet operators say delayed payments contribute to cashflow challenges, which 81% report are most acute across December, January and February. Only 11% of companies currently use invoice discounting solutions to support cashflow.
Alternative-fuel readiness: Many operators remain cautious on near-term adoption of alternatively fuelled vehicles. Key barriers include limited access to or insufficient information about the electricity grid (69.2%) and uncertainty about the availability and accessibility of high-speed chargers for heavy-duty vehicles (92.3%).
What the findings mean for the sector
Cost control is essential not only for day to day viability but also to fund reinvestment, innovation and resilience against future shocks. All partners in the supply chain must understand each other’s cost structures. Procurement strategies need to evolve—prioritising long term value and service continuity over short term savings. As the industry faces the twin pressures of decarbonisation and global logistics volatility, collaboration, compliance, and investment in environmentally advanced fleets and services are imperative.
Milestone year for FTA Ireland
FTAI marks its 15th anniversary in 2025 (established June 2010). Throughout this milestone year, FTAI remains committed to advocating for safe and compliant fleet operations, addressing the sector’s skills shortage, and engaging constructively with government to represent members’ interests.
Partners and acknowledgements
FTAI extends sincere thanks to project partners AIB, ENPROVA and Analytiqa for their invaluable contributions. Special appreciation also goes to the Department of Transport for its ongoing engagement, and to all survey participants for their time and insights.
Availability
Members can access the Manager’s Guide to Distribution Costs 2025 at https://ftai.ie/cost-of-distribution. Non members can find out more via the same page.
