Labour shortages in the logistics sector have eased, but a growing capability gap now poses a significant risk to future productivity and growth, with employers facing increasing difficulty securing the technical, managerial and specialist skills required across a rapidly evolving sector.
According to Logistics UK’s 2026 Employment and Skills Report, published today (30 June), the sector’s challenge is no longer simply recruiting people but securing the right skills in the right roles and supporting continuous development.
Phil Roe, Logistics UK’s president, said: “Our 2026 Employment and Skills Report shows that while entry routes into the sector are available across the educational spectrum, progression into higher-skilled roles could be enhanced by a more flexible approach to the provision of skills.
“The skills system plays a critical role in supporting workforce development, but it is not currently aligned with the pace of change in the sector, as training remains concentrated on traditional pathways and often does not take into account upskilling existing workers or entry from other sectors.”
The report shows how the integration of technology is reshaping roles across the sector. It notes that with the majority of HGV drivers (61.6%) aged 45 or over, and almost half (47.7%) of warehouse managers in the same age group, there is a current and emerging need to upskill and reskill the existing workforce, as well as to promote the sector to secure new entrants.
“Entrants to our sector need to be able to develop the skills, qualifications and experience to sustain future requirements of our sector,” Roe said, “and this cannot be done in isolation. Employers and policymakers need to work together to ensure that entry and progression pathways are accessible and deliverable for all.
“Logistics underpins everything in the economy, supporting industries such as construction, manufacturing and retail, which means that skills requirements need to be recognised not as a sole sectoral issue, but a critical component of national economic infrastructure.”
The report’s recommendations include an immediate improvement in skills system alignment with sector training needs. Policy frameworks must ensure that all employers can easily access and use funding in a way that fits how their business works, regardless of their size.
Roe warned that whilst the logistics sector is flexible and adaptable, its ability to respond to disruption is not enough to secure long-term resilience.
“The next phase of growth will depend on the sector’s ability to build and sustain workforce capability,” he concluded.
