Logistics companies critical of labour market

Author without image icon
Editorial
28 March 2017
3 min

Logistics companies rate the labour market with a tight enough. Research by economic agency Stec Groep in nine logistics hotspots shows that these companies give their labour market a 6.5. A quarter even give a 5 or lower.

These are not surprising results; due to the continued growth of logistics, the demand for personnel also continues to grow. Between 2011 and 2016, logistics companies took on an additional 5 to 10 per cent of staff. Around 350,000 new employees are expected to be needed until 2030, including new people needed as a result of growth (attracting new companies and growth of incumbents), but also replacement of existing logistics staff due to outflow, e.g. due to retirement. Part of the labour demand can be solved by robotisation and automation. According to Stec Group, it mainly means a different labour demand: mostly higher-value and more technical. In regions with high logistics employment, the effects are greatest.

Rising personnel costs due to tightness
Companies seem concerned about this tight labour market, with the number of available and suitable 'hands' and absorbing demand peaks seen by logistics companies as top three bottlenecks for the shorter term. As a result of the tightness, around 40 per cent of logistics companies expect personnel costs to rise significantly in the coming years.

Logistics companies appear to be increasingly taking the labour market factor into account in a strategic location choice. 40 per cent of companies expect the regional labour market factor to become much more important when choosing a location. Larger and international companies in particular think so (60 per cent).

Retraining and upskilling
In the long term, companies mainly mention the importance of proven retraining and refresher courses, a large pool of logistically trained employees now working in the logistics sector, MBO education available and cooperation projects between logistics companies aimed at the labour market. Companies mention as a long-term risk: regions that grow uncontrollably (and thus make a large demand on potential) and where the labour market is relatively less suitable (many long-term unemployed, shrinking labour force, etc.).

According to Stec Group, initiatives are already being set up to make logistics more attractive to future staff. The companies and hotspots interviewed argue for more structural attention to improve the logistics labour market. "The key is for each region to create a tailor-made 10,000-plus jobs plan. The 10,000-plus jobs plan should be made by governments, education and the business community together. It is also very important to anchor the implementation for several years and to deploy a few figureheads or pioneers. Some regions are already fully committed to this."

The companies advocate the following measures, among others:
- Invest in knowledge and qualities about (unemployed) regional labour force, to promote matchmaking.
- Invest in a series of region-specific projects to strengthen labour market bottlenecks.
- Organising a company promotion and/or logistics day, where companies present themselves to unemployed people and students.
- Get ambassadors and/or fans for logistics companies. Besides raising awareness of the image of the logistics sector, it is recommended that companies invest in their own ambassadors (read: workforce). The best branding for a company comes from its own employees, 'employer branding'.
- Investing in incumbent staff is vital for companies to ensure that employees (and especially talents) are retained, grow and keep up with changes in the workplace. This means investing in talent development, advancement opportunities and tailor-made courses and training.

Editorial LogistiekProfs