More than six out of ten respondents to Logistics UK survey expect severe difficulties recruiting HGV drivers

The LPT is a quarterly survey designed to improve understanding of the current condition of the logistics sector. Offering useful insights into logistics businesses’ financial health and long-term trends, the survey findings are also used to inform Logistics UK’s responses to consultations or government policy.

FINANCIAL OUTLOOK POSITIVE

On a scale from one to ten, respondents to the LPT reported being secure in their outlook for their business in the coming six months (7), reasonably confident about the UK economic outlook for the next half year (6.2) and on average maintained that the current financial health of their companies was buoyant (7.3).

RECRUITMENT ISSUES BUILDING

However, respondents reported that the COVID-19 pandemic had a negative impact on their business, particularly in terms of recruitment (-0.91) and driver availability (-1.10).

As well as a chronic shortage of HGV drivers, more than a third of respondents (36.6%), reported severe or very severe difficulties recruiting fitters, mechanics and technicians. By way of contrast, far fewer respondents reported severe or very sever difficulties recruiting warehouse staff (6.3%), transport managers (17.4), or van drivers (18.7%).

ECONOMY BENEFITS FROM LIFTING OF RESTRICTIONS

Since the last LPT in March, the UK economy has benefitted from the steady lifting of COVID-19 restrictions. Predicted levels of unemployment have been downgraded by the Bank of England from over 7% to 5.5% this year. However, inflation has risen sharply, from 0.5% in March to 2.1% in May. This has been driven in part by the oil price returning to pre-pandemic levels, whilst consumer spending has also risen following the reopening of high street retail businesses.

FINANCIAL HEALTH OF RESPONDENTS RISES

The growth in the economy has been reflected in the financial health of respondent companies, which rose from 7.1 in March to 7.3 in May. However, smaller businesses with fewer than 50 employees and those with medium-sized fleets were more likely to experience poor financial health.

Ryan Bartlett, Economics and Research Manager, Logistics UK, said: “The latest LPT results show an encouraging rise in the financial health of respondent companies, reflecting the recovery in the broader UK economy. However, the issue of staff shortages in the sector, particularly the severe difficulties recruiting HGV drivers, is a growing source of concern.”

*www.logistics.org.uk/LPT-results-form

Published On: 24/06/2021 16:00:55

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