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Sector summary: logistics

This summary gives a brief overview of the key trends in the sector.

Skills for Logistics is the Sector Skills Council for the logistics sector and includes companies involved in moving, handling or storing goods. Activities include:

  • freight transport by road
  • storage and warehousing
  • activities of other transport agencies
  • national post, courier activities and other national post activities
  • scheduled and non-scheduled air transport
  • cargo handling
  • other supporting air transport activities

There are 52,325 enterprises in the sector of which 64.5% are primarily involved in road freight transport. The UK logistics sector is estimated to be worth £55 billion to the economy.

The total workforce is approximately 1,753 million, which is divided into those employed in the logistics sector (996,000) and those in logistics roles in other sectors (757,000). Overall, the sector accounts for 6% of all UK employment.

Total employment in this sector is expected to remain stable over the next decade, but employers across all regions expect staff numbers to increase.

59% of employers consider their staff to be 100% competent at their jobs. However, there is a shortage of multi-skilled staff. Skills shortages are frequently reported for: general managers; harbourmasters; and plant operatives.

Many freight transport companies are experiencing difficulties recruiting LGV drivers and transport management staff. Over the next 3 years, an estimated 15,000-20,000 drivers will be needed, but over the longer term double the number of drives may be required.

High concentrations of employment in the sector are located in the South East, Scotland, London and the West Midlands.

Workers and managers in the sector are overwhelmingly male, white and of European ethnic origin. Only 11% of those employed in road freight and 22% of those employed in the overall logistics sector are women. The workforce is predominantly in the 25-54 age range, with road freight employment skewed towards the higher age levels. 1% of employees are reported to have a disability.

The distributive sector’s training infrastructure consists of a mixture of public and private sector provision. Despite an urgent need for skilled people within the field, the number of logistics and related courses is declining and fewer people are choosing to take the courses that are available.

National legislation sets a minimum age for LGV drivers of 21, making it difficult for young people to enter the industry.

Current research on the logistics sector is focused on the affects of new environmental regulation and policies, plus the influences of outsourcing.

Last modified 2006-08-12 09:23 AM
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