Navigating the demographic tipping point and talent shortage in the road haulage industry
The UK logistics industry stands as a cornerstone of the nation’s economy, employing over 2.7 million individuals and contributing £163 billion while generating over £1 trillion in gross revenues in 2021. With more than 8% of the UK’s total workforce involved in the transport of essential goods, the sector is undeniably a powerhouse. Yet, beneath these impressive figures lies a looming crisis: a severe shortage of qualified HGV drivers.
The demographic tipping point
The road haulage industry is approaching a demographic tipping point. More than 150,000 HGV drivers are nearing retirement age, and many others are leaving the sector due to sickness or other circumstances. The rate of drivers exiting the profession surpasses the rate of new entrants, signalling a critical juncture for the industry. Currently, road haulage organisations face a shortfall of 50,000 HGV drivers, with 83% of logistics businesses reporting difficulties in securing qualified drivers to meet demand.
The talent shortage crisis
This talent shortage poses a significant threat to the logistics sector’s stability and efficiency. As experienced drivers retire or leave the industry, the gap between supply and demand for skilled drivers continues to widen. The shortage has been somewhat masked by a temporary reduction in demand for freight forwarding services, but this is only a temporary reprieve. Without a strategic approach to address this imbalance, the road haulage industry could face severe disruptions, impacting businesses and consumers alike.
Other agitation factors leading to a talent shortage
While external factors like Brexit and Covid have undeniably aggravated the HGV driver shortage by reducing the pool of experienced drivers, these events are not solely to blame. The road haulage industry has been slow to adapt to the evolving expectations of the modern workforce, particularly younger candidates. Selective hiring practices, such as prioritising experienced drivers over newcomers to minimise training and insurance costs, have shrunk the potential talent pool. Additionally, many road haulage businesses struggle to meet the competitive compensation and working conditions now demanded by a labour market where job seekers are firmly in the driving seat.
Younger workers, particularly from Generation Z, are increasingly reluctant to enter an industry perceived as offering unattractive shift patterns, long periods away from home and insufficient compensation. This reluctance is further compounded by the high cost of obtaining an HGV license, which remains out of reach for many. Moreover, the industry has failed to address its significant gender gap, with women grossly underrepresented in the field due to both perceived and real barriers. These business-led issues not only aggravate the existing driver shortage but also increase the time and difficulty in recruiting and fully integrating new drivers into the workforce.
The role of the Driver Academy
Forward-thinking freight forwarders must act now to avoid this impending crisis, and the Driver Academy offers a proactive solution. Brought together by Manpower, HGVT and Logistics UK, the Driver Academy is dedicated to introducing new talent into the industry by equipping aspiring drivers with the skills and experience necessary to thrive.
- Comprehensive training and support: Creating the next generation of HGV drivers requires a multifaceted approach encompassing training, testing and job placement. The Driver Academy addresses the complexities faced by aspiring drivers, such as selecting appropriate training courses, receiving adequate support throughout the programs, and navigating the job market. Crucially, new entrants need the right qualifications to prove their capability to prospective employers.
- Partnership for success: Manpower has partnered with HGVT, the UK’s leading driver training organisation, to deliver the Driver Academy program. This initiative provides students with the necessary training, certification and employment support to launch a safe and successful career as an HGV driver, including extensive training that builds essential driving skills and helps students achieve the certifications required to accelerate their careers.
- The path forward: By expanding the driver pool now, freight forwarders can stay ahead of the driver curve and mitigate the risks associated with the looming talent shortage. The Driver Academy represents a vital investment in the future of the road haulage industry, ensuring a steady influx of qualified drivers to maintain the sector’s critical operations. As the demographic tipping point approaches, proactive measures like those offered by the Driver Academy will be crucial in sustaining the UK’s logistics and transportation infrastructure.
In conclusion, the road haulage industry faces a significant demographic and talent shortage challenge. However, with strategic initiatives like the Driver Academy, there is a pathway to navigate this crisis successfully. By investing in training and support for new drivers, the industry can secure a stable and skilled workforce to continue driving the economy forward.
To find out how Manpower can support your business, please get in touch.
