THE logistics sector makes up a major part of the Northamptonshire economy and therefore concerns for that sector are concerns for the wider economy of the county. So what are the challenges?
Skills shortages: As in many sectors, the lack of skilled personnel is causing problems. Attracting new people is a challenge, as is in turn retention of those recruited. The new apprenticeship schemes should hopefully see more people entering the industry but this does require companies to be willing to take them on and give them the relevant training, which is an investment in time and energy. As older staff are retiring there is expected to be a continuing skills shortage. With the unknowns of Brexit this can also affect recruitment as many companies recruit European workers.
Brexit: So Brexit is a reality, but what is it going to look like? At the moment the simple answer is that no one knows. This will not only affect employment, as mentioned above, but it will have an effect on trading within Europe (and beyond) – whether to the benefit or detriment of the UK economy is yet to be seen. The reduced value of the pound has several effects on the transport industry – on the one hand a negative effect due to the impact on the high street but on the other hand a positive one in that it improves exporters’ competitiveness. The ability of the UK to negotiate its own trading arrangements may have a positive effect going forward. Will the red tape around operators licences etc. reduce? The reality is probably not. In the short term it is the uncertainty which is the problem as it affects the ability of businesses to make long term plans.
Infrastructure challenges: The Government continues to assure us that it is committed to improving the UK’s transport infrastructure across the country, but the problems faced on a day-to-day basis continue and will no doubt get worse before they get better and it is a long term project requiring billions of pounds to be spent. Who is to say that going forward those funds will not be reallocated to areas seen as being greater vote winners?
Technological advances: The Government has already announced its pledge to ban diesel and petrol cars and vans by 2040. At the moment larger vehicles have not been mentioned. Is this ban feasible? How will the energy required be provided? Will there be more taxes or charges for diesel vehicles? What about driverless vehicles? Again, all unknowns which could affect the sector.
All in all there are challenging times ahead but also some great opportunities for forward thinking businesses. Wilson Browne acts for a number of clients, large and small, in the logistics sector. For further information visit the website www.wilsonbrowne.co.uk/services/commercial/business-services/logistics/