By Kate Jennings, director of policy at Logistics UK

Logistics is a broad, and extremely complex, industry that relies heavily on skilled workers to keep the supply chain running efficiently and effectively.

Statistics from Logistics UK’s ‘Logistics Report 2023’ launched in June demonstrates how vast the employment opportunities are within industry, with 227,000 logistics enterprises directly employing 1.8 million people across the UK.

Logistics underpins every sector of the UK economy and in addition to the employment directly provided within the logistics sector, supports 890,000 employees working in logistics occupations across all other sectors, such as retail, construction, manufacturing.

In total, there were a total of 2.7 million logistics jobs across the UK economy in Q3 of 2022, accounting for around 8.2% of total UK employment.

Despite this, due to the rapidly changing needs of businesses, the ageing population and a diminishing pool of EU workers, the sector continues to face recruitment challenges to support its workforce.

In a recent Logistics UK survey of its member businesses, 95% of respondents noted a continued challenge in filling vacancies for mechanics, with 54% identifying a severe, or very severe problem.

With the previous well-documented driver shortage resulting in many driver salaries increasing, many technicians made the switch to driving. However, to ensure that vehicles can remain on the road, it is essential that recruitment of new technicians is carried out at pace to provide the necessary support for operators.

Towards the end of June, the government announced its outcome of its exceptional funding review for apprenticeships, and while a small increase in funding for the Heavy Vehicle Service and Maintenance apprenticeship was agreed, in the view of Logistics UK, the amount confirmed does not go far enough.

In 2017, funding for the apprenticeship was £18,000. However, in 2018 this sum was lowered to £15,000.

While the latest announcement includes an increase in funding to £20,000, this only represents a £2,000 rise since 2017 – which does not cover the inflationary impact on the economy during that time.

Prior to the announcement, Logistics UK wrote a joint letter – together with key industry bodies – to the Institute for Apprenticeships and Technical Education calling for the funding to be increased to £23,000 in line with inflation.

With only limited providers of this apprenticeship to be found across the UK – due to the high cost of running the course, which often generates a revenue loss – it was disappointing to see the review fail to recognise the needs of such a critical industry in its future upskilling plans.

Figures from the Logistics Report 2023 indicate that 68% of respondents to the Logistics UK Industry Survey 2022/23 were interested in taking on apprentices – as a vital pathway to recruitment, it is essential the necessary support is in place for apprenticeship providers, employers and the apprentices themselves.

In addition to traditional mechanic and technician roles, demand is increasing for those who have the training and experience required to maintain the electric and alternatively fuelled vehicles which are becoming increasingly common as the UK transitions to net zero.

With the acceleration of decarbonisation and developing technologies, including automation, the skills needed across industry are changing. Industry-led and Government-backed campaign Generation Logistics is working to promote the broad variety of skills needed to the next generation of logistics talent and has recently announced continued support from government as it continues into its second year.

Generation Logistics will continue to focus on long-term solutions to the skills shortage, with a particular focus for year two on those aged 13-24, and educators in schools and colleges.

Teachers and lecturers are a key influence in careers selection for young people and the campaign will be highlighting the opportunities the sector presents to young people through quality-assured, curriculum-mapped resources.

Sponsorship opportunities are now available for businesses interested in supporting the next generation of logistics workers – to find out more, click here. 

While recruiting new workers into the sector is paramount, more must also be done to retain employees within to futureproof the workforce overall.

As highlighted in Logistics UK’s latest report, given the current skills shortage in the logistics industry, companies are focusing on retaining existing employees by increasing pay.

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%.

Also needed to retain workers and increase the sector’s ability to attract a diverse pool of talent – particularly female drivers – are improved welfare and facilities, especially among HGV drivers. 

While the Health and Safety Executive (HSE) states that workers must have access to clean and secure bathrooms and, where necessary, showers and changing facilities, this is still far from the standard provision offered to HGV drivers and some logistics workers and must be improved as a matter of urgency.

Logistics is a broad industry that offers diverse opportunities to all and a collaborative approach working with businesses, government, training providers and educators to ensure the recruitment of a steady stream of skilled workers into the sector, and to retain the skilled workforce already ensuring the smooth flow of goods across the nation is essential.

Logistics UK will continue to work together will all involved to maximise the opportunities available.