There are about 4,560 logistics sector workplaces in Scotland, employing around 128,300 people, which is 5% of all Scottish jobs.  The total number employed in the sector is expected to decrease to 2014, with a replacement demand of 21,000.

Around 30% of employees are process, plant and machine operatives and 32% are elementary staff.  79% of workplaces are operated by small firms (employing 1-10 people).  The largest single group includes van drivers, couriers and despatch riders (34,100).  A continued increase in management positions is expected with a decline in machine operative and elementary occupations.

7% of the workforce is self-employed (compared to 11% across all Scottish sectors) and 16% are employed part-time (compared to 25% across all Scottish sectors).

The workforce profile is broadly similar to that in the rest of the UK, with the majority of employees being male, white and of European ethnic origin.  Specifically, it has:

• significantly fewer female employees (24%) than in other sectors (47%)
• 2% are from minority ethnic groups
• a smaller proportion of part-time jobs (14%) compared with other sectors (33%)
• a workforce dominated by an older age group
• slightly more use of short-term contracts than the rest of the UK
• a similar proportion of small workplaces (80%) compared with other sectors (79%)
• 36% of process, plant and machine operative compared with 10% in other sectors
• 24% of elementary staff (i.e. jobs comprising mainly routine tasks, not normally requiring formal qualifications) compared with 11% in other sectors
• an average age of people in employment in the sector of 27% - exactly the same as in other sectors.  However, 19% are over 55, compared with 14% in other sectors.

The average weekly full-time wage is £350, which is 11% lower than the Scottish average.

Compared to all sectors in Scotland (29%), less people have S/NVQ Level 4 and above qualifications (11%). 

Only 3% of employees reported skills shortages.  Compared with the rest of the economy, the sector is characterised by a similar proportion of vacancies that are hard-to-fill (48% for the sector compared with 46% for other sectors).  The key skill deficit, especially amongst small firms, is the shortage of drivers for LGVs.

Skills gaps (where an employee is not fully proficient in their job) are more common than skills shortages.  9% of employees in the sector are not fully proficient and 22% of workplaces operate with skills shortages.  Employers most commonly cite weaknesses in ‘soft’ skills, such as customer handling and problem solving.  The industry also suffers from literacy and numeracy problems, which have been well hidden, but will increasingly be an embarrassment as business becomes more complex.  In response:

• 84% of employers provided further training
• 53% changed working practices
• 52% increased/expanded trainee programmes
• 18% relocated work within the company
• 11% increased recruitment

Expected future challenges for the sector include fuel prices and costs and prices generally.

Sources: Scottish Logistics Sector Profile 2006, Futureskills Scotland 2005 and Skills for Logistics - An assessment of Skills Needs and Current Provision in Scottish Logistics 2005