There are about 2,300 freight logistics sector workplaces in Wales, mostly small, with the average fleet size only recently rising above three vehicles. If all those engaged in logistics are included, the total workforce in Wales is around 70,100, which is 5.4% of all jobs. The largest single group (those involved in national postal activities) numbers around 11,600.

Much data about the workforce profile is simply not available. Data relating to disability and ethnicity are unreliable since many Welsh people classify themselves as Welsh first, even where they belong to a minority ethnic group. Existing data suggests that:

• only 19% are female, compared with 47% employed in all other sectors
• the proportion of minority ethnic groups too small to be measured (within an overall total of 2% in the Welsh economy)
• 15% of those 55+ compared with 16% in all sectors

The market place for logistics is strongly competitive at all levels and increasingly functions on a global scale, or at least a European-wide basis. It seems that margins are becoming too tight for many players, both large and small, and they are increasingly seeking economies of scale through consolidation.

Employers in the sector have particular difficulties with the recruitment and training of drivers. However, they are less likely to report skills gaps than employers in other sectors (this may imply a lower awareness of skills needs).

The key skill deficit, especially among small firms in some areas, is the shortage of drivers for LGVs. There are also skills needs in customer handling, use of IT and industrial equipment, communications and health and safety. The industry also suffers from literacy and numeracy problems, which have been well hidden but will increasingly become problematic as businesses becomes more complex. There is also evidence of management skill needs among both middle and senior management.

Low proportions of employees hold formal qualifications at NVQ Level 3 or above (though the sample is too small to be statistically reliable. Of the remaining employees:

• 39% hold NVQ Level 2
• 33% hold NVQ Level 1

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

Sources: Skills for Logistics - An assessment of Skills Needs and Current Provision in Welsh Logistics 2005