🕒 Article read time: 2 minutes
Staff shortages halting the wheels of logistics
The UK economy relies on a substantial logistics workforce to keep supply chains running effectively, with 2.7 million individuals currently in the logistics workforce, totalling around 8.2% of UK employment.
But, as Kate Jennings, Director of Policy at Logistics UK explains, we need to secure the next generation of logistics talent to protect the future of the industry.
“Businesses are struggling to attract and retain logistics workers,” begins Jennings, “with an aging workforce, poor industry reputation, diminishing pool of EU workers, and limited access to apprenticeship funding all contributing to the issue.”
AN ACUTE NEED FOR MECHANICS
Shortages of mechanics are most acute, with 95% of logistics businesses experiencing problems filling vacancies for these roles, according to Logistics UK’s Logistics Performance Tracker (November 2022).
More than half (54%) of those surveyed stated the problem was either severe or very severe.
“Many mechanics made the switch to commercial driving following the HGV driver shortage crisis of 2021, attracted by the wages offered by businesses as they sought to fill driver vacancies desperately; this has exasperated an already serious recruitment issue,” says Jennings.
“It’s essential that recruitment of new mechanics is carried out at pace to ensure vehicles are out on our roads delivering goods, and not stuck in a workshop queue,” continues Jennings.
MISSED OPPORTUNITIES FOR APPRENTICESHIP RECRUITMENT
68% of respondents to the Logistics UK Industry Survey 2022/23 said they were interested in taking on apprentices across a variety of logistics roles. “As a vital pathway to recruitment, it’s essential that the necessary support is in place for apprenticeship providers, workers, employers, and the apprentices themselves,” says Jennings.
In June 2023, the government announced it was increasing funding for Heavy Vehicle Service and Maintenance apprenticeships, as part of its exceptional funding review for apprenticeships.
“The increase does not go far enough,” says Jennings. “It represents just a £2,000 rise since 2017, which does not even cover the inflationary impact on the economy during that time.”
Together with key industry bodies, Logistics UK penned a joint letter to the Institute for Apprenticeships and Technical Education calling for the funding to be increased from £20,000 to £23,000, in line with inflation.
FUTURE SKILLS
“With the acceleration of decarbonisation and developing technologies, such as automation, the skills needed across industry are changing,” says Jennings.
“Demand is increasing, especially for individuals trained in maintaining electric and other alternatively fuelled vehicles, as they become increasingly common as the UK transitions to net zero.”
Generation Logistics, an industry-led and government-backed campaign, is helping to promote the broad variety of skills needed in the next generation of logistics talent and has recently announced continued support from government as it continues into its second year.
RETAINING THE EXISTING WORKFORCE
“While recruiting new workers is paramount, more must be done to retain employees within the industry to futureproof the workforce,” says Jennings.
Of the respondents to the Logistics UK survey, 92.1% indicated they had increased staff gross pay in 2022, with 48.8% raising pay scales by over 6%.
In addition to a shortage of mechanics, businesses are reporting challenges recruiting for a wide variety of roles, including HGV drivers, warehouse staff, van drivers, forklift drivers, and transport managers.
“A collaborative approach working with businesses, government, training providers and educators is vital to resolve the urgent, acute staff shortages we are witnessing, while ensuring the recruitment of a steady stream of skilled workers into the sector, and retaining the workforce already in place,” concludes Jennings.
*www.logistics.org.uk/campaigns     
Published On: 03/08/2023 13:00:00
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