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Contents3. Introduction
4. Sector overview
6. Logistical problems
7. Why aren’t young people entering the sector?
12. Solutions: get involved, get inspired, get going
15. The road ahead: actions to drive the sector forward
17. Conclusion
18. Appendix
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The logistics sector is facing a multitude of
challenges amidst a rapidly changing landscape
– and it could substantially impact your bottom
line. This paper explores the detail and provides
actionable insight for protecting your business
interests and keeping the thriving UK economy on
track.
Driver shortages and skills gaps are already taking
their toll, but the biggest hurdle is only just coming
into focus: the sector has an ageing population and
there simply aren’t enough millennials to replace
them.
Only 9% of the workforce is younger than 25, whilst
45% are more than 45 years old. With so few young
people entering the profession it’s only a matter
of time before the sector runs out of qualified and
experienced staff.
How have we found ourselves in this position?
Put simply, logistics has an image problem.
Talent in Logistics has undertaken its own original
research to better understand this ticking timebomb
and make recommendations around the best way
forward for business, to safeguard against the
impending workforce deficit.
Our survey of nearly 500 students and teachers*
provides unique insight into the perception and
understanding of the transport and logistics sector
among these key demographics.
The research reveals young people have very little
awareness of the sector as a whole and are mostly
in the dark about the wide variety of opportunities
available to them.
In fact, only 8% of young respondents say they see
logistics as an attractive career option, with the most
sought-after career paths being health and social care,
entertainment and media. Many consider logistics a
boring choice, while scores more think typical salaries
are far lower than they really are.
This report will:
• Clarify the current situation within the sector
• Outline the key challenges ahead
• Take a closer look at the facts and statistics behind
the headlines
• Make practical recommendations for attracting a
new generation of talented logistics professionals
Logistics involves devising creative solutions to
complex problems, whether it’s meeting seemingly
impossible delivery demands or overcoming supply
chain issues. Talent in Logistics is championing the
sector to apply this creativity to the unchartered waters
that lie ahead.
Now is the time to future-proof your business.
*449 students and 42 teachers at the WorldSkills UK Live exhibition in November 2018.
Introduction
4
Where did logistics originate?
The word ‘logistics’ was first used in 1810 to refer
to the way in which the military moved troops
and equipment around the world. This included
shipping, warehousing, road, rail and air freight.
Where are we now?
More than 200 years later and the logistics sector
is more crucial than ever, playing an essential
and constantly evolving part in our lives, while
facilitating the nation’s economic capabilities.
It’s important the sector continually reviews its
strategies and embraces innovation to keep up
with the ever-increasing challenges of ‘one-click’
ordering, skills shortages and environmental
impact improvements.
Sector overview
to the UK economy every year!
of the UK’s workforce
Employs2.5 millionindividuals
Contributes
£120.7 billion8%
5
Logistics is one of the most vital sectors in the
UK, affecting all aspects of the economy. Without
logistics, there would be no food on supermarket
shelves, no medicine in the cabinet, no petrol at
the pump and no chemicals to make our drinking
water safe.
Looking ahead, as internet shopping further
fragments routes to market, bigger teams will
be required to meet demand. The increase in
automation within the sector will also bring with
it the need for new skills within the workforce, so
both quantity and quality are needed.
This is where the challenge lies.
To put it into context…
300,000LGV drivers
240,000 van drivers
246,000managers& directors
170,000forklift operators
60% £10 billion70%
Around Over
of fruit and vegetablesare imported into the
UK via air freight, LGVs, ship and rail
worth of pharmaceuticals is transported into
the UK yearly
63 million tonnes of coal is burnt in power
stations each year,
of which is transported by train
6
Ageing workforce
Only 9% of the logistics sector is under 25,
while 45% is over 45 years of age1, plus there is
a shortage of people entering the sector as a
whole. Inevitably, as the older workforce exits
the sector, businesses will be faced with an
expanding skills deficit.
Diversity & inclusion
Research suggests the logistics sector still
remains a male dominated space despite
rising numbers of women in the rest of the
business world. However, data and emerging
trends are proving the true worth of placing
greater numbers of women into logistics jobs.
In the UK, barely a third of those working in
logistics are female, according to Go Supply
Chain Consulting.5
Perception of logistics
Over the years, careers in logistics have
developed a reputation for being mainly
focused on LGV driving, or low-skilled roles
with a lack of progression. There is also limited
exposure to careers in logistics throughout the
educational system, meaning school-leavers
are unaware of the opportunities available to
them.
The most expedient route to recovery from
these issues is to attract a new generation into
the sector. However, as our research revealed,
this provides the industry with an additional
challenge. In order to understand the problem,
it is important to examine the reasons young
people are not opting for careers in logistics.
Driver shortage
There is a well-documented driver shortage
across the UK. Official figures suggest the
sector is short of between 43,000 and 60,000
drivers.7 Part of the problem is the driving
profession, particularly for LGVs, is ageing at a
more dramatic rate than the rest of the sector,
with 60% of LGV drivers aged 45 or over.1.
Skills gap
With 49% of the logistics workforce either
unqualified or qualified below level 21, skills
shortages and lack of training are affecting the
ability of the sector to grow.
Logistical problems
7
Our research, undertaken at the WorldSkills UK
Live exhibition in November 2018, exposes the
various barriers keeping young people from
entering into a logistics career. Here’s an overview
of our findings:
They simply don’t know what it is
Talent in Logistics’ unique new research reveals
a lack of knowledge about the sector, which is
leading to poor perceptions among young people,
making it difficult for them to get a grasp of its
essential function and the opportunities it holds.
Only 44% of 11-20 year old respondents could
name three logistics companies, with the top
answers being Tesco, Royal Mail and Amazon.
When asked ‘what does the term ‘logistics’ mean
to you?’ 17% said ‘transport’ and a staggering 42%
admitted they didn’t understand the word at all.
Interestingly, some of the popular answers
included ‘maths’ and ‘logic’, which suggests
respondents took the first part of the term ‘logistics’
and used this to interpret a meaning.
Other key answers are detailed in the lorry-shaped
graphic below:
Why aren’t young people entering the sector?
DELIVERING
GOODSPRICES
DISTRI
BUTING
GOODS
CO
NS
TR
UC
TIO
N
INTELLIGENCE
OR
GA
NIS
AT
ION
GRAPHICS
BUILDING
CHANGE
MA
CH
INE
RY
LOGICCARS
TRAVEL SHIPS
TRUCKS
SUPPORT
FACTS
DATAANALYSIS
MATHS
EFFICEINCY
INT
RIC
AC
Y
UPS
CARS MO
VIN
G
MONEY
SECTOR
SUPPLY CHAIN
MA
NA
GE
ME
NT
NUMBERS
ADMINISTRATIONAE
R
O P L A N
ES
INN
O V A T I ON
42%
17%
5%
3%
Said it didn’t mean anything to them, or they didn’t know what it meant
Transportation/transporting goods
Maths
Logic
Distributing goods around the world3%
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The complexities of the sector mean there is a
huge variety of roles, a wide range of skills that can
be transferred to a career in the sector and plenty
of opportunity for progression.
However, this also makes it much harder to define
potential career paths, unlike other industries such
as education, medicine or construction for which
‘one-stop overviews’ are easier to apply.
Much more needs to be done to educate young
people about roles that exist within logistical
operations such as traffic operators, routing/
scheduling clerks or distribution managers. The
education system has a significant part to play
in raising the profile of such jobs – as well as the
sector in general.
They don’t think it’s exciting enough
Only 8% of those surveyed by Talent in Logistics
considered the sector to be an attractive career
option.
Perceived to be an isolating and male-dominated
career path, the perception of the logistics sector
is not a particularly glamorous one.
Pay is a good example of the lack of clear
knowledge that surrounds the logistics sector.
Almost 20% of respondents believed that LGV
drivers get paid between £20,000 and £25,000,
when in fact they can expect to earn around
£30,0002; well above the UK’s average salary of
£26,500.
And while respondents mainly associated
logistics with driving, there is a vast range of roles
throughout the supply chain such as transport
management, materials planning and purchasing
and operational management.
Another perception that came to light is that
logistics is a career people ‘fall’ into, rather than
it being a strategic career move. Some of this
miscommunication comes from the way logistics
careers have been traditionally promoted, or not
as the case may be, in the education system.
Only 18% of respondents said they have been
spoken to at school or sixth form about logistics as
a career option, so there are clearly opportunities
being missed in terms of introducing young
people to logistics.
One way companies in the sector can rectify this is
by invoking the Baker Clause (see page 15).
Increasing awareness of the sector at an earlier
age could be an effective way to address the
stereotypes and half-truths that young people
have about the industry.
For example, ‘driver’ as a role is deemed to be an
unskilled job, when this is not the case. In other
European countries such as Belgium, LGV drivers
are deemed skilled professionals who take great
pride in their jobs, their appearance and can
command high salaries.
Currently, the UK’s LGV driver workforce is
projected to grow by 0.6% over the period to 2024,
creating 1,700 jobs. Interestingly, in the same
period, 33.6% of the workforce is projected to
retire, creating 104,500 job openings3.
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However, young people may not even seek these
job opportunities as they are not aware of the
fact that with time and experience, an LGV driver
could progress and become a freight transport
planner, an LGV training instructor, or move
into management in the world of transport and
logistics.
Their concerns about the sector included:
Eco-friendliness, education/teaching, travel/
driving, boredom, physical labour, fear of making
mistakes, safety, money, opportunities to develop.
They are unsure of the skills needed
When asked, 45% of respondents to the Talent
in Logistics survey said they were not sure about
the skills required to work in the sector, with 37.4%
stating they believe logistics requires high levels of
skill.
While some imagined logistics leading to
stagnant and unfulfilling jobs that do not require
qualifications or skills, others believed it is a difficult
sector to break into, requiring many years of
education.
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It would therefore surprise the majority of young
people to learn that logistics is a career that is
accessible to professionals with almost all levels of
education.
For example, labour-related roles such as
warehousing and transportation do not necessarily
require a degree, yet there are opportunities to
progress through on-the-job development. On the
other hand, roles requiring personnel that oversee
operations do require a certain level of education
or qualifications.
It is also possible to move up and around the
sector without a degree. While most young
people’s perception of logistics is around transport,
this sector is not just about moving goods around
the world by road, rail, sea or air, it’s also about
managing the supply, demand, distribution and
procurement operations, offering an abundance of
career opportunities.
Only 16% of students associated logistics with
operations management, implying they are
unaware of career opportunities throughout the
supply chain.
In addition to the roles that already exist in
logistics, young people need to be made aware
that the evolution of the sector is constantly
creating ever-more sophisticated processes and a
much wider range of professions. With the speed
the sector is developing, who knows what jobs will
emerge in the years to come that don’t even exist
yet?
They think the sector lacks diversity
26% of the young people we asked said they do
not believe there is gender diversity within the
logistics sector, and, perhaps more worryingly, 53%
said they don’t know enough about the sector to
have an opinion on the issue at all.
Unfortunately in this area the reality does reflect
the perception. In the UK barely a third of those
working in the logistics industry are female
according to Go Supply Chain Consulting.5
This is in part due to the fact that, historically,
there has been a poor understanding of the
career opportunities available within the sector.
Consequently, logistics is not considered a sector
of choice for talent pools such as young people
and women.
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To attract young people, especially young
women, the sector needs to better promote the
opportunities available to them. This could start
with simple steps such as including more young
people and women in marketing materials such as
leaflets or pamphlets for logistics jobs.
In an ever-changing sector, new roles - which are
driving the need for an enriched and enlarged
set of skills - are emerging. Recruiters can take a
step forward in increasing gender diversity with
alternative ways of thinking and the acceptance
of new approaches, such as flexible working
arrangements.
Equality and diversity are vital in creating an
inclusive culture for all staff and ensuring the
logistics workforce has access to the support it
needs to progress.
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Now we have outlined the causes and scale of
the challenges faced by the logistics sector, what
practical steps can you take to start attracting a
new generation of logistics professionals? The
projects detailed over the next few pages are
already underway and yielding impressive results.
Whether you choose to get involved with such
schemes and initiatives directly, or simply use
their methodologies and success stories as
inspiration, discovering more about these creative
collaborations and endeavours could be the first
step towards future-proofing your business and
contributing to the revitalisation of the sector.
Many young people are not aware of the
different routes available for them to enter the
sector, such as:
What are businesses currently doing that’s
working?
Many logistics companies are already engaging
with local schools and colleges, creating
awareness of the sector. Here are a few examples:
1. Think Logistics - Preparing the next generation
for the world of work
Established by Steve Granite, CEO of Abbey
Logistics Group in Liverpool, this sector-led
scheme aims to bridge the gap between young
people who are looking for a rewarding career and
logistics companies seeking young people.
Career Ready Think Logistics works to connect
more than 40 leading logistics companies to
schools and colleges, through activities such as
mentoring, workshops and internships.
Career Ready Think Logistics gives young people
an insight into the logistics sector and helps open
their eyes to a range of job opportunities they
may not have previously considered. In return, this
helps the sector attract motivated, work-ready
young people to meet both current and future
skills needs.
Your company can get involved in this initiative by:
• Running a Career Ready Think Logistics
workshop at a local school or college
• Mentoring a student to be ‘career ready’
Solutions: get involved, get inspired, get going.
13
• Joining a school or college’s Local Advisory
Board to promote logistics and help them
engage with employers
• Offering a paid internship or apprenticeship
opportunity
www.careerready.org.uk/think-logistics
www.think-logistics.co.uk
2. Business on the Move - Making logistics
child’s play
What better way to engage young people than a
game? Business on the Move is precisely that –
multimodal companies compete globally to deliver
orders as quickly, profitably and sustainably as they
can.
This unique board game was designed to excite
and inspire young people about global business
and supply chains, ultimately encouraging them to
consider a career in logistics. Created by a social
enterprise, 25% of the games have been made
available to schools and colleges without charge.
The activities within the game and the associated
teaching resources offer young people, from
primary pupils to postgraduate students, an
opportunity to discover the exciting world of
supply chains and enhance their key skills at the
same time. Sponsors of the initiative, including
CHEP, DP World and Marks & Spencer, feature in
the game, to make play more realistic.
As popular as it is to play, Business on the Move
is much more than a game. More than 50 learning
activities have now been developed in partnership
with the game’s UK and global sponsors, which
are being used in many schools, universities and
logistics training centres all over the world.
www.businessonthemove.org
3. Destination Rail & iRail - Getting young people
on the right track
Learn by Design works on behalf of schools,
corporate and public sector clients to provide
quality, value for money, educational products
and services to inspire future generations. One
of its initiatives - Destination Rail - is a Science,
Technology, Engineering and Mathematics (STEM)
outreach programme, specifically focused on the
rail industry.
Its aim is to provide students with a unique
opportunity to engage with employers from rail
and related industries and to access a wealth of
information about careers that are available now
and in the future.
The programme also aims to address the growing
skills shortage in the rail sector. It highlights the
true breadth of careers available, while breaking
down many of the stereotypes associated with the
industry and attracting future talent.
Another similar initiative run through Learn by
Design is iRail, an annual event where students are
given an engineering challenge which is judged by
a panel of experts.
Since it began in 2009, iRail has attracted
hundreds of school students from Derbyshire and
Nottinghamshire. Now organised as part of The Big
Bang, the biggest celebration of STEM for young
people in the UK, iRail is a highlight of the rail
industry calendar, providing genuine opportunities
for young people and a firmly established brand in
the region.
www.learnbydesign.co.uk
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4. NOVUS - On course for success
Since its creation in 2012 by Andy Kaye, chief
executive of Bis Henderson, NOVUS has been
inspiring the next generation of supply chain
professionals. NOVUS, part of the Chartered
Institute of Logistics and Transport UK (CILT UK),
works with eight leading universities to provide
undergraduate students with applied, industry-
relevant education. Students studying business,
logistics, operations and supply chain degrees
benefit from guest lectures, mentoring, summer
placements and a guaranteed year-long industrial
placement in their third year, as well as graduate
employment.
NOVUS courses have been designed
collaboratively by professionals and academic
experts to give students the skills, knowledge
and experience needed for a successful career in
logistics and supply chain management.
The NOVUS sponsors that provide the benefits
listed – more than 20 leading blue-chip
companies in manufacturing, retail and logistics
- subsequently benefit from the cream of the
graduate crop, guaranteed ‘work-ready’.
www.novus.uk.com
5. Young Forwarder Network - Taking the next
step together.
Once you have successfully recruited new talent,
what’s next?
The British International Freight Association (BIFA),
the trade association for UK freight forwarding
and logistics companies, recently launched a new
networking group - the BIFA Young Forwarder
Network (YFN).
Aimed at supporting individuals that have recently
joined the sector, the new scheme consists of
several regional networking groups that provide
members with the chance to network with their
peers, learn from industry professionals and boost
their continuous professional development.
Each networking group is run by young forwarders
and designed to help early talent and young
BIFA members develop their knowledge and
professional skills, in a social and enjoyable
environment.
The YFN was created to help improve the
promotion of the sector, make it more attractive to
younger people and provide forums for them to
learn.
www.bifa.org
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The road ahead: actions to drive the sector forwardThe logistics sector is rich with opportunities
and roles that are complex and demanding, yet
well-rewarded. Roles include planning, strategy,
finance, operations, IT and many more.
There is room for much more to be done to
widen the appeal of the sector and tempt more
youngsters into logistics. The whole supply chain
sector is so much more varied than it is perceived
to be and is in need of more young talent.
In addition to the existing initiatives outlined in this
report, the following steps can be taken:
Leverage the Baker Clause
The Baker Clause was proposed by former
education secretary Lord Baker and was written
into law in 2018. It means that schools must allow
vocational training and apprenticeship providers to
advertise their courses to pupils aged 13-18.
More companies within logistics need to take
advantage of this regulation to introduce the
industry to young people as early as possible. If
schools allow logistics training providers access
to students in years 8 to 13 to discuss the various
routes that are available to them within the sector,
it will help address some of the UK’s productivity
challenges and address skills shortages.
While it can be incredibly difficult for outside
organisations to get into schools due to packed
schedules and curriculum obligations, the Baker
Clause should be taken advantage of as much as
possible to help you get your business or initiative
in front of children and teachers on a regular basis.
Increase sector visibility at career fairs
The sector needs more representation at career
fairs and other regular events such as Big Bang
and WorldSkills UK, which are currently playing
a major role in highlighting the opportunities
available to young people in logistics.
These are excellent networking events and
can give young people the chance to make
connections with potential employers, mentors
and peers.
For those who do not have a good sense of
what career they want to pursue, these fairs can
open doors, linking them to people who can
become instrumental in their career progression.
Therefore, logistics needs to make sure it’s in
the mix when these decisions and connections are
being made.
Diversify your workforce
Increasing the presence and visibility of senior
female leaders and those from BAME (black,
Asian and minority ethnic) backgrounds can help
attract, recruit and retain these demographics and
advance them to senior levels.
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Other important actions that will facilitate this
include a greater focus on cultural values and
leadership behaviours, as well as highlighting
the success stories of current female and BAME
leaders.
Better career development, as well as increased
opportunities for sponsorship and mentorship,
such as the CILT’s Women in Logistics, are also
vital.
Connect with millennials via social media
Social media isn’t just a helpful tool for the younger
generation, they live and breathe it. Our research
reveals that the top three social media platforms
used by respondents are:
• Instagram: a photo and video-sharing social
networking service
• Snapchat: a multimedia messaging app used
globally
• YouTube: a video sharing website.
Take steps to engage with young people on these
platforms and you will have instant access to a
whole new pool of talent.
Our survey found that a huge 66.4% of respondents
engage with Instagram, an incredible opportunity
for logistics recruiters to capture millennials’
attention with engaging visual content.
According to social media management platform
Hootsuite, 75% of Instagram users take action4,
such as visiting a website, after looking at an
Instagram advertising post. This proves that the
marketing benefits of using Instagram could be
extremely rewarding for logistics companies trying
to reach more young people.
While Snapchat could be a tough one to use,
especially with a topic such as logistics that’s
not attractive to young people, it’s still a platform
that recruiters within the sector need to consider
engaging with as 62.5% of our survey respondents
are active users.
YouTube is one of the most popular platforms
for reaching young people, with 36.8% of our
survey respondents stating that YouTube is one of
their go-to platforms. Examples of how logistics
companies could utilise this platform more are:
• Young employee testimonials - video case
studies of young people currently pursuing a
career in logistics, talking about how they got
into the sector
• “A day in the life of” - a glimpse of a typical day
in the life of a young person working in the
sector
• Company culture - broadcasting your company
values on your YouTube channel gives potential
candidates an opportunity to self-select and
work out whether they’re a good fit, as cultural
fit is important to many young people.
17
Logistics is undeniably one of the most important
career fields in the world. Without the planning and
execution of the distribution of resources, society
as we know it would cease to function.
The impact of a skills shortage in the future cannot
be underestimated.
This paper has presented you with some important
tools and insights to make a real, lasting difference
in this essential industry.
In summary, these are the key messages
the logistics sector needs to focus on when
communicating with young people:
Logistics needs a range of skills levels
Though it may seem like a complicated sector
that requires an advanced degree, young people
need to be made aware that this depends on
which facet of logistics you enter. Truck drivers,
warehouse workers and forklift operators are all
part of the logistics team, but they are organised
and directed by mid-level managers and
experienced logistics executives.
It’s a world of challenge and opportunity
As the global economy is expanding, logistics is
becoming increasingly important. Outsourcing has
provided new challenges and new opportunities in
logistics.
Don’t underestimate the earning potential
In February 2019, the average salary for logistics
jobs rose by £4,809 (10%).6 LGV drivers can expect
to earn around £30,000, and the average salary for
logistics jobs is £57,500.
There’s never a dull moment
Contrary to popular belief, the sheer variety of
work means logistics is anything but boring. As
many young people mainly associate logistics with
transportation management, it has a reputation for
being dull.
However, more businesses need to paint a picture
of the varied processes of sourcing, warehousing,
and transportation, and they will see that it can
take them to new levels of career satisfaction.
There’s excellent career progression
There is room for career progression as the sector
has so many facets and levels. The logistics
industry tends to promote from within, so once you
have a foot in the door even in a low-level position,
the potential to progress is endless.
A diverse range of doors are open
Though careers within the sector have traditionally
been held by white men, women and those from
BAME backgrounds are becoming increasingly
involved at all levels, changing the face of logistics
companies and departments.
The logistics world offers increasing opportunities
for women, with over 30% of positions within the
supply chain currently held by women. Over 37% of
all logistics related graduates are women, with this
number continuously rising5.
Conclusion
18
1 - Understanding Skills and Performance Challenges in the
Logistics Sector, UK Commission for Employment and Skills
https://assets.publishing.service.gov.uk/government/uploads/
system/uploads/attachment_data/file/360931/14.10.02._SLMI_
Logistics_Evidence_Report.pdf
2 – HGV Training
https://www.hgvtraining.co.uk/hgv-training-news/how-much-
does-an-hgv-driver-earn/
3 – Youth Employment UK
https://www.youthemployment.org.uk/careers-hub-job-role/
lgv-driver/
4 – 22+ Instagram stats that marketers can’t ignore this year.
https://blog.hootsuite.com/instagram-statistics/
5 – Figures from Go Supply Chain Consulting
https://www.gosupplychain.com/blog/women-working-
logistics.html
6 – CW Jobs
https://www.cwjobs.co.uk
7 –UK Parliament
https://publications.parliament.uk/pa/cm201617/cmselect/
cmtrans/68/6805.htm#_idTextAnchor018
Appendix
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www.talentinlogistics.co.uk
Talent in Logistics, Access House, Halesfield 17, Telford TF7 4PWTalent in Logistics 2019
