Labour market inhibits growth of logistics hotspots

After transport costs, labour availability is the most important factor when choosing a business location. This emerges from research by Stec Groep, which presented the figures during the well-attended Logistiek Vastgoed 2016 congress. The labour market is expected to become even more important in the coming years. "In warehouses, we will only need more hands."

On the ranking of factors determining location choice, labour availability ranks two and labour costs three. According to Hub Ploem of Stec Groep, who conducted research among two hundred logistics service providers and shippers, the labour factor is becoming even more important. "Worryingly, 75 per cent of those surveyed said they base their choices on factual knowledge, but at the same time 43 per cent admitted to having insufficient knowledge of those facts. So companies will really have to invest in factual knowledge. After all, the labour market is not the same everywhere. There are locations where good workers are available, but also locations where the labour market is going to be really tight.

More hands needed
Arthur van Dijk, chairman of Transport & Logistiek Nederland (TLN), is worried about the labour market. "In warehouses, despite robotisation, we will only need more hands. After all, if all goes well, we will only add more value to goods there. If you look at road transport, it seems like we have lost ground, but the fact is that we are currently looking for drivers. This has to do with growth, which is expected to continue for some time, but also with an ageing population. We will see a large outflow of labour in the coming years," says Van Dijk, who clearly notices that companies are concerned about the labour market. "If a Tesla opens a new branch here, the first question they ask is whether they will still be able to get enough workers in five or 10 years' time."

That the labour market is a matter of concern was evident during the panel discussion at the end of the conference. With the statement that a shortage of qualified personnel is becoming an inhibiting factor in the growth of logistics hotspots, a large part of the audience declared itself in agreement. Robert Visser, alderman of the municipality of Son en Breugel and administrative leader of Werklocaties Metropoolregio Eindhoven, refers to the gaming industry. "In recent years, new training courses have been launched in this sector, attracting a total of 700 talents while only 50 are needed every year. This sector has succeeded in making work sexy. We need to do the same in logistics."

Concerns about middle management
Peter van der Maas, managing director of DSV Solutions, refers to the growth in the number of logistics courses. "There are many more of them than before, but maybe all those talents will do something else when they finish their education. But honestly, I am not that worried about the higher-end talents. If I need a logistics engineer or someone who can answer a tender, I can hire someone in Eastern Europe or India for that too. I worry more about middle management: the people who have to run the operation.

Marcel te Lindert - Journalist logistics and supply chain management