2015 could be the year to see logistics employers take the lead in developing innovative ways of coping with one of the sector’s biggest problems – the shortage of lorry drivers.

Angie Took - Skills Gateway operations manager

Faced with an ageing workforce – the average age of drivers is 57 and only 2 per cent of lorry drivers are under 25 – and additional EU test requirements, employers are increasingly finding that developing the skills of their current workforce will be the key to company growth.

Warehouse to wheelsAccording to a recent survey by the Road Haulage Association, over 70 per cent of employers are suffering a driver shortage and a further 20 per cent said they expected to do so soon.

In one major UK city, Manchester, a European-first initiative – the Greater Manchester Skills Gateway – believes more and more employers will recognise upskilling as the best way to solve this problem and help to supercharge their workforce in 2015.

“The UK logistics sector is one of the most important in driving economic growth, but employers need to have the right people if they are to deliver on that growth,” comments Skills Gateway Operations manager, Angie Took. “As more than 60 per cent of goods in the UK are moved by road, driver shortages will cause serious knock-on effects to the rest of the economy. It is vital, therefore, that employers ensure they are investing in training to guarantee we have people with the right skills.”

The Skills Gateway is working with employers to connect them with high quality training to do just that.

One initiative that has been highlighted in addressing this problem is the Warehouse to Wheels scheme, which helps fund training that allows staff to obtain a Category C Large Goods Vehicle licence.

The local authority – Oldham Council in Greater Manchester – has recognised the plight of employers by supporting a £200,000 investment in the Warehouse to Wheels scheme that is aimed at existing warehouse staff.

Councillor Jim McMahon, the Leader of Oldham Council, says: “This scheme is very much close to my heart, as my father is a truck driver and I used to ride along with him when I was young.

“With the real cost of an LGV licence averaging at £4,000 to £5,000 per individual, the cost of obtaining the licence is a real barrier to entry. By supporting the training costs, Oldham Council hopes to help employers create new jobs.”

He continues: “Local people, both in work and unemployed, cannot afford to obtain the relevant licence. This is a national issue. In Oldham, we have chosen to do something about this and, through the Warehouse to Wheels scheme, we will invest in those local people who want to get on in life and are willing to work hard.

“With the right driving qualifications, hardworking residents can earn an additional £7,000 a year – that’s potentially around £148,000 over a working life.”

In recent research, the UK Commission for Employment and Skills (UKCES) predicted many logistics firms would be left behind if they fail to tackle these skills issues.

It highlighted that a major issue for employers in 2015 will continue to be rapidly changing technology. Multi-skilled roles are now the norm and the desire to improve competitiveness and meet customer requirements means employers must look towards technologies to gain greater efficiencies. These include GPS systems and electronic signature scanners, together with problems such as more customer-facing work for the existing workforce, as well as difficulties recruiting new entrants.

“Since we launched six months ago, we are finding that an increasing number of employers need their workforce to have higher levels of transferable skills – giving them the ability to work effectively across the business,” says Skills Gateway’s Angie Took. “For warehouse and logistics employers, this is proving vital.”

One employer who has discovered that training can help company growth is Amphorea Packaging in Stockport.

Andy Brogan, Warehouse Manager, regards workforce development as key to managing this growth successfully. He comments: “As a small business, which is growing rapidly, it’s our responsibility to make sure that training is available to all our staff. One employee, Anthony Bowler, has completed his Level 1 and Level 2 Warehousing and Storage qualifications with training provider, Mantra Learning.”

Like a lot of staff, Anthony initially had some reservations about work-based learning, which he attributes to previously being made redundant. He says: “Anything new can often be alien. When you’ve not been in that environment, and with a lack of confidence, I really did not want to do the courses.”

After being re-assured by his training advisor that he wouldn’t have any problems doing the course, Anthony decided to go for it. As a result, he has seen a positive impact on his work performance, as well as his confidence levels.

At the Skills Gateway, the service is finding that employers who invest in training, such as Amphorea Packaging, can reap big rewards.

“Companies are realising that investing in training can favourably hit their bottom line and, with such a shortage of key people, warehouse and logistics businesses will need to be inventive in developing their current people if they are to grow in 2015,” says Angie Took.

For more information about how Skills Gateway can bridge the skills shortage gap, visit www.gmskillsgateway.co.uk.

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