LOGISTICS
T
he primary constraint on future growth now is not labour availability, but its ability to recruit for the right skills and close a widening capability gap, partly due to the growing adoption of technology, but also
because of limited visibility of progression routes for new entrants.
“The skills challenges facing the sector are not the result of a lack of investment or engagement.”
Skills constraints also have wider
implications for policymaking and best practices. Current interventions are designed to address immediate shortages and are effective in the short term, but they are unsuited to the new challenge of futureproofing roles. For the sector to secure resilience in the long term, it must build a system capable of supporting entry and progression, alongside remaining responsive to emerging occupational requirements.
TECHNOLOGY IS RAISING SKILLS REQUIREMENTS The widening capability gap has been driven by the adoption of technology that has raised the level of skills required across a growing proportion of the workforce as roles have changed. There is no doubt that businesses are benefiting by adopting technology, but the situation is also changing operational environments and increasing expectations of employees’ capabilities, including HGV drivers, which are increasingly using fleet technology such as telematics platforms, route optimisation systems and digital compliance tools.
The makeup of the sector highlights why labour market pressures are linked increasingly to a capability gap rather than headcount; 43 per cent of employment is concentrated in Level 2 occupations (foundational and entry-level positions) while only 18 per cent is in Level 4 occupations (higher level and technical roles). The low proportion of younger people in
these roles raises concerns about the sector’s capacity to replenish skills as workers retire, highlighting an urgent need to reform the overall system and enable recruitment of the skilled workers the sector needs.
ADDRESSING SKILLS CONSTRAINTS The skills challenges facing the sector are not the result of a lack of investment or engagement. Since the introduction of the
20
LOGISTICS MUST CLOSE WIDENING CAPABILITY GAP
Historically, the logistics sector has faced significant labour shortages where it has struggled to recruit for key roles, but analysis from Logistics UK’s Employment and Skills Report 2026 shows that this situation is shifting
Apprenticeship Levy in 2017, transportation and storage have paid £1.6 billion into the system. Instead, a misalignment between provision and demand is contributing to the industry’s recruitment problems, as the pattern of programme uptake suggests employer demand is changing faster than training provision. This is particularly prominent within leadership and management roles, as apprenticeships within these areas often sit outside the pure transport and logistics provision. Responding to these demands will require
greater flexibility from providers in how training is designed and delivered, including the provision of modular forms of learning that enable employers to upskill existing employees and target new entrants. Employers must place emphasis on progression and capability building, while policy interventions must support developing skills across the whole career cycle. This includes ensuring funding mechanisms are usable for employers of different sizes, with no barriers to participation. A combination of the adoption of technology and lack of progression within logistics has resulted in skills constraints, which the sector must urgently address to plug future gaps in the workforce. Support from the government and training providers will be an essential part
JULY/AUGUST 2026 | FACTORY&HANDLINGSOLUTIONS
of the future skills development landscape, as well as realigning training and provision to ensure employers’ needs are being met. Building capability across the workforce will
require ensuring the systems that support it are fit for purpose, shifting away from short- term responses to longer-term planning and investment. Logistics UK is one of the UK’s biggest business groups, representing logistics businesses which are vital to keeping the UK trading and more than seven million people directly employed in the making, selling and moving of goods. With decarbonisation, new technology and other disruptive forces driving change in the way goods move across borders and through the supply chain, logistics has never been more important to UK plc. Logistics UK supports, shapes and stands
up for safe and efficient logistics, and is the only business group which represents the whole industry, with members from the road, rail, water and air industries, as well as the buyers of freight services such as retailers and manufacturers whose businesses depend on the efficient movement of goods.
Logistics UK
www.logistics.org.uk
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