2023 Q1 Logistics Industry Newsletter

Welcome to the first Streamline Recruitment Quarterly Logistics Industry Newsletter of 2023!

At Streamline Recruitment, we pride ourselves on staying up-to-date with the latest developments and trends in the industry so we can better serve our clients.?

So as we leave Q1 of 2023, we wanted to take a moment to update you on some of the major news stories from the previous three months in the logistics industry.

We hope you enjoy the Newsletter!

Drivers Shortages

The UK driving industry is currently facing a major shortage of drivers, resulting in an unprecedented recruitment challenge. The Road Haulage Association has determined a substantial lack of HGV drivers - current assessments peg the number at around 70,000 - and it is mainly attributed to two culprits: Brexit and Covid-19.

Despite the narrative being that these are the two major catalysts for the shortages, even before the events of 2020, there was already an extensive shortage of HGV drivers in the UK - with the deficit standing at a staggering 60,000 drivers.

The dramatic rise of fuel prices in the UK has further exacerbated the existing driver shortage issue, as many drivers are demanding higher wages to cover their expenses, while some are choosing to leave the industry altogether. This has further reduced the pool of available drivers, making it even more challenging for companies to recruit and retain them.

The Impact of the Increase in Minimum Wage?

The increase in minimum wage has had a major effect on the logistics industry. By providing a higher baseline salary, employers have had to review their recruitment strategies to ensure they can still compete with other businesses in their sector for quality staff.

Companies in these industries are increasingly relying on perks, bonuses and benefit packages to help make their employment offers attractive, whilst still meeting their profit margins. Additionally, there is more of an emphasis on retaining existing staff members by incentivising performance and rewarding loyalty.

Companies are also creating attractive development and progression pathways, which offer stability, training, and improved wages for committed individuals. This has resulted in a need to hire staff that are flexible, proactive and able to adjust to different scenarios as the needs of the business shift.

The Focus on a Green Logistics Industry

Following the government’s “Powering Up” announcement made in late?March, Logistics UK have expressed their disappointment with the ongoing absence of a strategy for a green transition for larger vehicles.

Manufacturers are doing there bit to commit to the cause, as continuous technological breakthroughs in the realm of electric heavy goods vehicles have allowed the range anxiety problem to be addressed. As battery capacity improves, electric HGVs are becoming viable alternatives for lengthy transportation, allowing a much larger distance to be travelled with a single charge.

This shift towards eco-friendly vehicles has allowed for cost savings for manufacturers, a decrease in carbon emissions, and a smoother driving experience for operators. In addition, businesses across the UK are seeing an increase in efficiency as these electric vehicles allow for faster deliveries and increased mileage in fewer trips.

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Our expert team prioritise staying in the loop with the trends and large news stories of their specific industries. If you would like to discuss how any of the above news stories could impact you or your business please follow the link below to Book a Strategy Call page.