LOGISTICS
Problem – there ’ s an estimated shortage of 80,000-120,000 drivers in the UK .
Factors causing the shortage of HGV drivers :
> DVLA test backlog due to Covid 19
> Foreign nationals leaving due to Brexit
> Older drivers taking early retirement after furlough and not wanting to continually retrain to meet DVLA / VOSA criteria
> Career change prompted by Covid and drivers looking elsewhere at better paid , easier roles
drivers ’ wages and benefits .
“ In the last month , we have had to increase our drivers ’ wages by almost 20 per cent just to hold on to our existing personnel . Typically the road haulage sector runs on two per cent profitability , so these are not increases that any of us can absorb in our own businesses .”
AV Dawson has been lobbying the government on the issue .
Managing director Gary Dawson said : “ While numerous sectors are experiencing staff shortages and resultant wage inflation , I believe no sector is worse affected than road haulage .
“ With estimates of between 80,000 and 120,000 drivers short currently , most hauliers have trucks standing , goods are not being fully replenished at point of sale and manufacturers are not receiving raw materials and components .
“ Economic recovery and any prospect
> General poor pay and out of equilibrium work / life balance that the haulage industry promotes
> Manufacturers generally undervaluing the role of logistics in their supply chains , driving low rewards and even negative margins to hauliers , leaving them unable to pay better wages to drivers to attract and retain talent .
“ The wages and expectations , along with conditions , are not sustainable for these professionals and are failing to attract new people to the industry .”
of growth are being threatened and inflationary pressure will feed through .
“ The government is pushing for investment in UK drivers , but this won ’ t happen overnight . We ’ re therefore challenging them to consider other options to support the industry in the short term , including relaxing some of the Brexit restrictions on European drivers .
“ The government has recently proposed a relaxation of drivers ’ hours regulations as a response to the issue . However this is actually unwelcome by the industry on safety and welfare grounds and has not been well received or adopted by the majority of drivers who want to work less , not more , hours .
“ While many businesses were opposed to Brexit , we ’ ve all come to accept that this is happening .
“ We must , however , recognise the unprecedented position we ’ re in and react quickly to resolve it .”
Potential solutions include :
> Relax working visa requirements to make it easier for European drivers to take positions in UK haulage firms
> Put more funding behind promoting the logistics and haulage industry ( from school level upwards ) to a new generation of drivers and help further with training provision and cost
> Review legislation with respect to the degree of regulation and related cost that UK haulage has to bear , which appears to far exceed that in the rest of Europe
> Reduce road diesel fuel duty for the haulage sector ( the government is about to benefit dramatically from April 2022 from the abolition of red diesel duty relief in all but a few specific market sectors )
> To prevent more firms exiting the market and creating further shortages , consider additional tax breaks and transitional relief funding as the industry ultimately converts from diesel fuel to alternative sustainable green energy solutions
> Further promote and support domestic rail freight by challenging and equipping Great British Railways - currently known as Network Rail - and giving additional special advantages to hauliers engaged in ‘ last mile logistics ’ for goods received from , or delivered to , rail where rail represents the majority distance in the logistics chain
> A similar scenario as above to promote coastal shipping options as both rail and coastal shipping can take hundreds of thousands of lorry journeys off the UK ’ s motorways .
The voice of business in the Tees region | 77