The ongoing COVID pandemic along with Brexit has resulted in the number of HGV drivers on UK roads reducing by 100,000 which could multiply to a shortage of as many as 257,000 drivers by 2022. Unless companies that operate HGV fleets become more efficient by cutting regular costs like fuel, they might not be able to entice drivers into the industry.
A skills shortage in the logistics industry is not a new phenomenon. The aging population in the sector, the higher costs involved in insuring young drivers and the fact that it can cost up to £5,000 to train as a new truck driver are contributing factors as to why only 1% of drivers are below the age of 25 and a plurality are over 50.
The Brexit and COVID factors
The most immediate impacts of Brexit have been felt by the logistics industry, due to the increased difficulty in importing and exporting goods, leading to growing traffic jams at ports. With this issue also comes the increasing difficulty of replacing EU nationals that decide to move back to their native countries as a result of Brexit – EU nationals account for 13% of all LGV drivers in the UK.
Moreover, the ongoing COVID-19 pandemic has previously meant that it was difficult to train new drivers as many testing centres have ceased operations, completely cutting off the already much diminished flow of new drivers who might be looking to pursue a career in the industry.
Now that restrictions have been lifted in England with other devolved nations following, consumption is ramping up to pre pandemic levels. However, due to HGV driver shortages, shops cannot keep up with demand and there are reports that supermarket chains are warning that we could be looking at a ‘summer of food shortages’ as a lack of drivers means that 48 tonnes of fresh food is wasted every week.
How can the logistics sector help to attract drivers?
An obvious way to attract workers into the industry would of course be to increase wages and decrease hours worked. However, the margins for the haulage industry are extremely narrow, typically sitting at 1 to 2%. So, how can we reduce costs?
One solution to minimise costs would be for logistics companies to switch to a fuel card network that has a large convenient network of refuelling sites across the UK, allowing drivers to refuel where required. Even in difficult economic conditions, companies will be rest assured that they’ll drive fuel efficiencies, while also reducing refuelling costs.
Elsewhere, with the recent government announcement banning the sales of new petrol and diesel HGVs by 2040, the switch to hybrid fuel vehicles, which although is a long-term investment, will reduce costs. However, the haulage industry is likely to be slow on this front as technology and infrastructure catches up.
The important of market understanding
It is vital that logistics companies understand the market and consider the expertise of partners in the space. This is because those businesses will be able to get the best rates on fuel, through partnering with such providers as well as getting advice on how to drive efficiencies up and costs down.
With costs reduced, this will allow wages to increase and along with government action to reduce the cost of training, this could help to attract drivers onto the roads and keep shelves stocked. To learn more about Keyfuels, visit: www.keyfuels.co.uk
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