Focus Outlook

Peak Season: Logistics Firms Ready with Hiring and Tech Investments

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In the UK, logistics remains a vital but underappreciated sector, with 7% of the workforce engaged in the industry. Despite its crucial role in maintaining the flow of goods, logistics faces a recruitment crisis, as only 7% of young adults express interest in pursuing careers in this field. The question arises: why is the logistics industry struggling to attract the next generation?

A survey by Prologis UK, a global leader in real estate and supply chain logistics, revealed that 92% of respondents viewed logistics workers more positively during the pandemic. This newfound recognition has instilled a sense of pride among those working in the sector. Prologis’ 2023 Critical Infrastructure report found that only 7% of young adults would consider a career in logistics.

To address this challenge, the UK government has launched “Generation Logistics,” a two-year program aimed at raising the profile of logistics careers in schools and colleges, with £300,000 in funding. Robin Woodbridge, head of capital deployment and leasing at Prologis UK, emphasized the need to change public perceptions of the industry. He noted that many people still associate logistics solely with delivery drivers, despite drivers making up only about 6% of employees in a typical logistics building.

One key selling point for the logistics industry is job satisfaction. Prologis research found that 66% of logistics and warehousing workers love their careers, and 69% of employees aged 18 to 34 are likely to recommend a career in the sector. 

Furthermore, formal qualifications are not a significant barrier to entry, as data from YouGov revealed that most logistics managers do not hold university degrees. Qualifications in fields like science, engineering, law, business, and finance are popular among those who hold degrees, highlighting potential pathways for young people to enter the industry.

Prologis’ Daventry International Rail Freight Terminal sets an example for the industry by offering external amenity areas for staff and an on-site training academy called The Hub, which aims to identify and upskill the next generation of logistics professionals. These initiatives, it is hoped, will inspire the broader logistics industry to engage young talent and adapt to meet the increasing demands expected in the future, especially with the online retail market predicted to grow by 29% between 2022 and 2027. The logistics sector must reposition itself to welcome the class of 2023 and beyond.

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