While a range of measures has been implemented by the government to tackle the ongoing UK HGV driver shortage, it’s widely viewed that the battle to improve numbers will be a long and protracted one. However, according to Logistics UK, the latest ONS Labour Force Survey Data show that there are signs of recovery being seen.

The shortage of HGV drivers remains chronic, however, it appears that the number currently in employment has not fallen as acutely as it has in previous quarters. This is being viewed by some as a reason for cautious optimism that the initiatives put into place since late 2021 are steadily beginning to yield results.

“Hard work paying off” – Sarah Watkins

Speaking on the matter, Deputy Director of Policy Information at Logistics UK, Sarah Watkins expressed positivity of her own:

“Government and industry have worked hard to address the key issues which have affected the recruitment of HGV drivers in the past. The reduction in numbers of HGV drivers in employment, generally caused by retirements or shifts into other careers, slowed in the first quarter of 2022, compared with the second half of 2021.

This illustrates how actions such as increased wages for drivers, drivers’ skills boot camps and improved throughputs of testing by DVSA are beginning to address the loss of skilled workers which we have seen in the recent past.“

“Hardly any surplus HGV drivers available”

Watkins continued, praising the work done by the DVSA, saying “Such a large increase in the number of HGV tests being undertaken is testament to the work being done by DVSA to address its testing backlog, alongside the industry’s commitment to encouraging new recruits to join the industry.

Simultaneously, the very low number of HGV drivers claiming Jobseeker’s Allowance fell 70% from Q1 2019 to Q1 2022 indicating that there are hardly any surplus HGV drivers available for work. Attracting and retaining new recruits and existing HGV drivers in the sector remains a critical priority for the logistics industry to secure a talent pipeline for years to come.

Slower Falls Than Previously Seen

The latest ONS data indicates that while HGV driver numbers have fallen by some 30,300 during the first quarter of 2022, this is significantly lower than in Q3 (44,900) and Q4 (49,000) of 2021. However, to offset this, DVSA testing data shows that 26,388 practical HGV tests were conducted during Q1 of 2022 – representing a 43% increase compared with Q1 of 2019.

March alone saw record levels of tests being undertaken – 10,481 – with a 60% pass rate. Also, HGV driver pay has increased, resulting in higher retention of staff and more people being attracted to the industry. This is illustrated by advertised salaries during Q1 2022 for qualified drivers being, on average, 25% higher than they were just 12 months ago.

Good News, But Much Work Still to Be Done

While it’s important not to get too far ahead of ourselves, this data provides welcome news for an industry that’s been through much over the last few years. What happens next is crucial for the sector, but should these trends continue over the long-term, it points toward a much brighter and more settled future for everyone involved.

At Insite, we’re doing our part to bring new talent to the industry with our leading HGV driving licence acquisition programs. Delivered across our national network of training centres by our experienced team of instructors, we’re able to help, no matter how large or small the needs of your organisation are.

If you’d like to know more about us and what we do, please take a moment to browse our website. However, if you’d like to get in touch with us, you can either click ‘contact us’ or call 0330 818 8888. There our team is ready and waiting to help you in any way they can.

The fact that the UK is experiencing increased fuel costs and supply chain issues is not breaking news. However, a major disparity between road freight costs in Greater London and the rest of the United Kingdom may be and this is what’s been highlighted in the latest Transport Price Index issued by the Transport Exchange Group (TEG).

A slight disparity may be explained by the fact that the cost of living in London is higher than in the rest of the country. That said, the Price Index has revealed road freight increases in the Capital have outstripped the rest of the UK by a factor of 2 to 1 over the period of March to April 2022 – placing even more pressure on Britain’s London-based hauliers.

11.6 Points Versus 5.3

In real terms, the average price-per-mile for courier and haulage vehicles in the Greater London area has risen by 11.6 points over just a single month. This is double the increase in road freight costs seen in the rest of the UK, which themselves sit at a more modest, but still significant 5.3 points over the same period of time.

This follows the same trend from 2021 that saw a drop after the usual spike over the festive period and then a month on month increase. What also can’t be ignored are the substantial year-on-year increases, which sit at 16% more than they were just three years ago. Since April 2019, the cost has risen from 100.9 points to a considerable 117.5 points in April 2022.

“Post-Brexit Bureaucracy & Inflation to Blame”

When asked about the reason behind the surging transport costs, the TEG pointed toward post-Brexit bureaucracy, EU import check delays and rising inflation as key factors. Although the group did suggest that these increased costs aren’t being felt by consumers and businesses to the expected extent, as spending has been curbed due to the cost of living crisis.

TEG stated: “With the increased cost of living – notably energy price rises – many consumers are cutting back on their spending to balance household budgets. Consumer confidence has been reported as hitting an all-time low and the ONS announced a 1.4% decline in retail sales in March”

Also contributing to the debate was TEG’s CEO, who added: “We’re continuing to see that the TEG index is a result of many different factors, all of which affect the state of the industry. Haulage and courier businesses have to respond to fluctuations in costs and there will then be knock-on effects for the many industries that work with them.

This isn’t the case in London, however, where price rises in the last month were double the national average. What we have right now then is almost a two-speed situation, with prices in the Capital soaring and relatively low rises elsewhere. What remains to be seen is whether the conditions in London drive up prices around the UK”.

One of Many Challenges to Overcome for UK Haulage

We all knew that returning the UK haulage industry to good health would present many challenges along the way. Rising costs, driven by inflation and EU customs bureaucracy, are certainly making things tougher for haulage operators across the UK, but at Insite, we will continue to support the industry in any way we can.

One way we will do so is by continuing to provide industry-leading HGV licence acquisition programs via our national network of training centres staffed by the most experienced trainers in the business. To find out more about us and how we work, take a few minutes to browse our website, where you’ll find everything you need to know.

Alternatively, to get in touch with us directly, click ‘contact us’ or call us on 0330 818 8888, and we’ll be delighted to discuss your requirements.

After what has already been a busy year for the UK’s haulage sector, we bring you an update about a potential future for the industry. It relates to a government-funded study into the cheapest way in which to decarbonise HGVs – one that has found that powering HGV vehicles via overhead charging cables represents by far the most viable option.

This highlights a possible strategy to be implemented in order to meet the objective of decarbonising all HGVs by 2050. Battery electric trucks are being seen as the most likely solution for reducing current levels of carbon emissions, with the ‘greenest’ method of recharging them being the current point of contention.

By Far the Cheapest Option

The study’s findings show that when compared to other options, powering HGV batteries with overhead cables is clearly the most cost-effective route to take. According to Professor David Cebon from the Centre for Sustainable Road Freight (CSRF), ‘topping up’ much smaller batteries via overhead catenary cables was the most “technologically ready”.

Speaking after the feasibility study carried out by a consortium that included SPL Powerlines, Siemens Mobility and truck manufacturer Scania, Professor Debon spoke about the surprising efficacy of the method, stating that there were similar systems running in the United States, Sweden and Germany…

“It’s not just a fantasy in the UK, there’s quite a lot of interest in Europe and India and China. What it means is much, much smaller batteries. You could have a 150kw/h battery in almost every truck in the UK. In general, it reduces battery sizes by at least a factor of two, if not more than that. These are much more efficient even than straight battery electric vehicles.”

Within the Government’s Existing Budget

Prof Debon also went on to talk about the fact that while the proposed cost of the scheme in the UK of around £20bn might sound high, the government’s current budget for the roads for 2020-2025 is significantly higher, at £28bn. Continuing to pay hydrogen subsidies, he said, would work out much more costly.

UK Transport Secretary Grant Shapps also contributed to the overhead cabling conversation last week when questioned by MPs on the transport select committee about how the haulage sector plans to decarbonise. He said:

He said: “We have already had an extensive discussion about bigger vehicles, buses and lorries.

There’s been massive investment into one experiment using overhead wires for trucks. I am not sure we want to do that to all our motorways, but it’s an interesting in principle investigation.”

Following the success of the Zero Emission Road Freight Trials programme, we are now working to expand the programme to trial multiple zero emission HGV technologies on UK roads.

As we drive towards our net zero targets, we’re committed to making our air cleaner and the way we transport goods kinder to the environment. We will announce further information regarding future trials in due course.”

An Interesting Look Into The Future of HGV Driving

Whatever the eventual outcome of this process, there’s no doubt that there are some interesting times ahead for the UK’s haulage sector. Britain’s roads will likely look very different when electric trucks are being driven on them, particularly as 5,000-7,000 miles of overhead cabling will need to be installed.

Going forwards, the Insite team will continue to support the sector by providing industry-leading HGV licence acquisition programs that ensure the ongoing driver shortage is overcome. To find out more about how we work, please take a few minutes to browse around our website, which contains everything you need to know.

Alternatively, to get in touch with us directly, either click ‘contact us’ or call us on 0330 818 8888, and we’ll be more than happy to discuss your requirements.

While there has been much positive news for the logistics industry over recent months, a mixed reception has been given to a new report from accountants Price Bailey. The report contains data that suggests that almost a third of UK hauliers are at imminent risk of collapse.

The reasons lie in rapidly increasing HGV driver wages and record diesel prices, with 28,557 out of 96,102 UK haulage companies having Delphi Risk credit scores that reside in the ‘Maximum Risk’ category. This status makes the task of accessing funding without guarantees from directors, a difficult one.

A Figure That Has Doubled in 12 Months

This worrying news is made all the more so when you consider that the figure of 28,557 is double where it was just 12 months ago, when it sat at 14,020 in March 2021. The report also added that many haulage companies are being forced to absorb cost increases caused by wage demands and oil prices, restricting already-thin margins.

It goes on to warn that road freight’s increasing cost is being exacerbated by the fact that many bulk cargo operators agreed lengthy contracts in preparation for what was believed to be a ‘hardening market’. Caused by Brexit and then Covid-19, they’re locked into a set price-per-mile that’s well below the current going market.

Increasing Cash Flow Pressures

Speaking about the issues, Price Bailey partner John Warren had this to say…

“In the long run hauliers can put up prices but those locked into fixed-price contracts will just have to bite the bullet for now. Many of our haulage sector clients are having to wait up to 90 days to get paid on top of seeing their fuel bills jump by thousands, creating a cash gap and potential solvency issues.”

This is far from being the only financial pressure that hauliers are facing either, as the cost of both new and used HGV cabs and trailers have majorly increased over the last year. This has led also to increased insurance costs. It would seem then that things are looking bleaker than many imagine…or are they?

“Very Alarmist” – Rod Mackenzie

However, there are some in the logistics industry that feel that this report is painting a much more serious picture than actually exists. Speaking about the report, Rod Mackenzie from the Road Haulage Association (RHA) had quite a different take on matters…

“I’ve not seen any evidence, anecdotal or otherwise, of this sort of problem in the industry. Certainly, times were tough last year with the driver shortage, but many firms are reporting record work with business booming, although the rising cost of fuel and wages is obviously a massive headache.”

“Not surprised” – Moreton Cullimore

Further muddying the waters, Moreton Cullimore – RHA chairman & MD of the Cullimore Group – has stated that he wasn’t surprised about what the data was saying at all…

“There was a spike – a boom if you like – but that has definitely backed right off. While hauliers are busy, the increase in costs has not been reflected in the ‘selling price’ in an industry of low margins.

I am significantly concerned for my transport company and others because all I see is our costs at their highest and our selling price not increasing at the same rates; there isn’t a comfort zone in the middle to cope with the difference.

If we raise our rates we won’t get the work and there are too many clearing houses and multinationals that will just do it for rates that an independent can’t do it for as they don’t have the scale of the others.”

Overcoming Uncertainty & Industry Challenges

No one said that returning the UK’s logistics industry back to health would be easy and this report shows that the need for pragmatism is greater than ever. Whether the issues faced are as bad as claimed or not, there’s no doubt that there will be more challenges ahead. However, together, as an industry, we believe they can be overcome.

At Insite, we’ll continue to strive to combat the ongoing HGV driver shortage in the UK, with industry-leading, scalable HGV licence acquisition programs. With our nationwide network of training centres, staffed by the most experienced trainers in the business, we’re well placed to help, no matter how large or small your requirements are.

To find out more about us and how we work, we encourage you to take a moment and browse our website. Alternatively, to speak to us directly, either click ‘contact us’ or call us on 0330 818 8888 and a member of our team will be happy to discuss your needs.

The UK’s haulage industry has been steadily losing HGV drivers for a number of years now, with Brexit, the pandemic and working conditions cited as the primary contributing factors. However, those who have left the industry are being urged to come back, with Driver Academy Group bootcamps – led by Insite – potentially leading to higher wages.

The bootcamps, provided by the group that also features Logistics UK and Manpower are said to be ‘game-changing’ and indicative that lorry drivers are now being seen as essential workers. There are still hundreds of spaces available on these refresher training courses, but they’re filling up fast with those returning expect to earn much more than they did before.

High Levels of Interest Being Expressed

Availability is not due to a lack of interest, far from it. In fact, according to the Logistics Academy, the program has gotten off to a ‘flying start’ in the first couple of weeks. So far, over 5,000 expressions of interest have been made for the Department of Education-funded 16-week course that’s hoping to attract 11,000 HGV drivers back into the industry.

Running up until November 2022, the bootcamps cover licence acquisition, in addition to Driver CPC and ADR upskilling for highly-paid petrochem tanker work. Insite Chief Executive, James Clifford had this to say on the matter…

“Finally, HGV drivers are being seen as essential and vital workers and careers into this sector are now being encouraged and funded.

The Driver Academy Group is leading the way in this ground-breaking scheme and is proud of our commitment to supporting and training individuals into the sector, ensuring they land the very best jobs with some of Britain’s most attractive companies.”

Manpower : Demand For Experienced, Reliable Drivers is Strong

These training opportunities are available at a time when working conditions are improving and according to ManPower – the UK’s largest recruitment specialist – the demand for reliable, experienced drivers is higher now that it’s ever been. Manpower brand leader Jason Greaves briefly touched upon what the learning process involves…

“We support each learner by understanding their driving aspirations, help with updating, or creating, their CVs and preparing them for interview. This is done in order to make it as straightforward as possible to secure that new role. Re-joining the sector is proving highly popular and we look forward to supporting those returners with their career journey.”

Uptake in Driver Academy Group skills bootcamps is set to increase moving forward, particular as companies wanting upskill their existing drivers can apply for funding. Help is available to businesses from the government with 70% of the scheme’s cost being met.

Proud to Play a Pivotal Role in Attracting Talent

At Insite, we’re extremely proud to be playing such a big part in attracting HGV drivers back into the sector. Leading the Driver Academy Group as we do, we’re perfectly placed to leverage our considerable expertise and experience for the benefit of the industry as a whole.

Alongside this well-received scheme, we’ll continue to offer leading HGV driver licence acquisition programs via our nationwide network of training centres. To find out more about us and what we do, we encourage you to spend a little time browsing our website.

Alternatively, if you’d like to speak to us directly about your driver training needs, you can get in touch by calling us on 0330 818 8888 or clicking on ‘contact us’, after which we’ll get back to you as soon as we possibly can.

In yet another move designed to support the UK’s haulage industry, £20m is being provided by the government to fund the provision of better roadside facilities. These funds are being allocated to improve a variety of aspects of the current status quo, with security, shower rooms, lighting and dining areas all set to be improved.

Coming from the National Highways current £169m Users & Communities Fund, it forms part of an overall £52.5m worth of investment in driver facilities. One of the challenges cited as preventing new talent being attracted into the HGV driving sector is working conditions – something this allocation seeks to address.

Roadside Service Operators Urged to Apply Immediately

This latest directive brings the total number of measures implement to support the beleaguered lorry driving sector to 33. Application is key, however, with roadside service operators being urged to apply for funding immediately to avoid missing out on their allocation of this multi-million pound investment.

Talking about the funding, Roads Minister Baroness Vere had this to say:

“HGV drivers play a key role in keeping our nation running and contributing to the economy, and it is vital they feel safe and comfortable wherever they stop. That’s why we’re allocating £20 million to ramp up security and improve amenities for drivers.

Building on the raft of measures we’ve already taken to support the industry, we’ll continue to work closely with the sector to boost professional driver numbers even further”.

Well Received by Industry Stakeholders

The announcement of this funding boost has understandably been welcomed by a number of haulage industry stakeholders. Firstly, Moto’s Hospitality CEO Ken McMeikan stated it was great news for hardworking HGV drivers, going on to say…

“It is encouraging to see that the input provided by industry figures has been acknowledged and acted upon by the Department for Transport. We look forward to making an application to this £20 million fund, which would allow us to accelerate our plans for enhanced security and increasing the physical number of showers we can offer”.

This sentiment was echoed by Logistics UK’s Head of Policy Engagement who had this to say on the matter…“The announcement of an additional £20 million to boost HGV driver facilities is a positive step forward for industry, and Logistics UK is now calling on roadside service operators to urgently apply for funding.

It’s vital that these key workers, who are charged with keeping the nation stocked with all its required goods, have a safe place to take these breaks, where they are also able to make use of much needed bathroom and catering facilities”.

Vital Improved Working Conditions in the Sector

It’s fantastic news that the chronic need for improved working conditions for HGV drivers in the UK is being addressed. The ongoing driver shortage will only be overcome if we can attract new blood into the industry and that’s much more likely if people are able to rest, relax and refresh themselves in purpose-built facilities.

At Insite, we’ll be carry on doing our utmost to attract the next generation of lorry drivers with industry-leading, scalable HGV licence acquisition programs via our nationwide network of training centres. Staffed by highly experienced and knowledgeable trainers, we’re well placed to make a real difference in boosting the available talent pool.

If you’d like to learn more about us and how we do things, we recommend that you take a look around our website, where you’ll find everything you need to know. Alternatively, to get in touch, click on ‘contact us’ or call us on 0330 818 8888 and we’ll be happy to discuss your training needs.