Scott Saunders, technical service manager at Watco, discusses how the recent UK budget could impact workloads, routine maintenance and repairs in the warehouse and logistics sectors.
The warehousing and storage, and logistics and distribution sectors are just two of many in the UK that have been reporting labour shortages in recent years. The issue has been intensified by many factors, however, one of the biggest contributors has been the restriction of movement from across the EU as a result of Brexit.
A survey published by the Chartered Institute of Logistics and Transport in 2022 revealed that 86% of companies had experienced warehouse operative staff shortages in the past two years. This year, Descartes survey of supply chain and logistics leaders from across the globe confirmed that the challenge has persisted, and is certainly not unique to the United Kingdom.
So, what impact could the recent UK budget have?
Well, the Government’s plans to boost apprenticeship funding in key sectors, and increase both the National Minimum and Living Wage, could entice young UK talent into key sectors in the first place.
This would significantly help to slow the rate of labour reduction in the warehousing and logistics sector as a result of professionals retiring or leaving due to stress and high workloads. However, the positivity of this move will be dependent on the ability of companies in the sector to absorb the increased labour costs before the advantages of a larger workforce can be realised and translated to cost-savings and efficiencies.
Research from Watco in the past 18 months found that well over a third (38%) of professionals in warehousing and storage agreed that there aren’t enough young people coming into the FM industry, and a similar proportion of the group agreed that FM isn’t an attractive enough career option for young people. Yet FMs across key sectors including warehousing and storage, retail logistics and distribution, production and manufacturing and building, construction and refurbishment all agreed that they are concerned about a skills shortage and it is difficult to find good employees.
Attracting new talent into key sectors across the FM industry is critical, not only to prevent decades of experience and expertise being passed on before it is lost from the sector, but also to ease the workloads and growing responsibilities of those already in the roles. Watco’s research also highlighted the concern that unmanageable workloads are leading to mistakes, with over 40% of warehousing and storage professionals agreeing that this is already the case in their sector.
With such significant implications, the commitments in the recent budget do not go far enough for these sectors. Attracting sorely-needed talent will require more than the support outlined in October’s announcement. To drive engagement and interest in joining these key UK sectors, work needs to be done on increasing and promoting the huge breadth of opportunities available, particularly with the recent technological advancements in the sector.
Additionally, companies in the sectors cannot be faced with mounting financial pressures when Watco’s research has already shown that a third of FMs believe reduced budgets have posed a safety risk at their facility in the year prior to the study. Increases to both the National Living wage and National Insurance (from 13.8% to 15%) will be detrimental to a proportion of UK companies operating in these sectors.
While the UK budget’s plans for more apprenticeships and higher wages could be a positive for talent acquisition in the sectors discussed, they do not go far enough to address the shortage and apply too much additional pressure to those operating in the sectors currently. Looking ahead, listening to and collaborating with the sectors’ representatives will be key to meeting future demands and ensuring the sector’s growth, safety and stability.
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