Training, insurance and staffing costs risk worsening driver shortage

HGV driver shortages pose a consistent challenge for the UK road haulage industry, as research has forecasted the need for 400,000 new drivers per year to match economic demand.

Furthermore, fewer than 2% of UK HGV drivers are under the age of 24, with more than 55% aged between 50 and 65, highlighting that low levels of young people entering the profession could further add to recruitment challenges as retirement rates increase in coming years.

Jolawn Victor, Divisional Chief Executive Officer of Telematics at Radiushas highlighted the following cost challenges and their potential impact on HGV driver shortages: 

  1. The cost of getting drivers qualified has doubled in the last decade

Research from Dojo’s UK Inflation Index has revealed that training costs in the road haulage industry have increased by 100% in the last 10 years, highlighting that the cost of getting new drivers qualified and on the road is increasing at a significant rate. 

  1. Insurance costs have surged 57% in the last 10 years

Research has also shown that insurance costs for the UK haulage industry have increased by 57% in the last decade[2]. As insurance costs for less experienced drivers are often higher, this cost challenge may grow in coming years as the industry aims to recruit younger staff to replace retired drivers.    

  1. Staffing costs have also experienced a significant increase 

Staffing costs in the UK haulage industry have also increased by 44% in the last year[2], driven by factors like increased contributions to National Insurance in 2025. With competition for recruiting drivers pushing wages upwards, even small increases to staffing costs can have significant implications for labour-intensive haulage firms. 

What practical steps can haulage firms take to tackle increasing cost challenges?

Jolawn Victor comments: 

As rising training, insurance and staffing costs continue to increase, UK haulage firms face a growing financial barrier to recruiting and retaining the drivers they need to match demand. This makes it increasingly important for businesses to find efficiencies elsewhere.

Investing in technology such as telematics can help firms to streamline their operations by giving them the data they need to make informed cost-saving decisions. For example, real-time insights into vehicle location can reveal opportunities to optimise routes and reduce fuel consumption, while monitoring driver behaviour can highlight inefficient habits like idling, harsh braking and acceleration among individual staff members.

One of Warehouse Automation’s Hardest Problems

The humble cardboard shoebox is often considered to be one of the trickiest problems that warehouse automation technology has yet to resolve, until now, writes Oscar Cutts (pictured, below), Business Development Manager, Nomagic.

Warehouse automation has become remarkably good at moving pallets, cartons and standardized totes. Yet one of the most common items in fashion fulfillment – the shoebox – has remained surprisingly resistant to automation. With shoeboxes making up around 20 per cent of all fashion ecommerce merchandise, even modest improvements in automated handling can have an impact on warehouse productivity.

A shoebox appears to be an ideal object for a robot to handle. It has defined edges, fairly consistent dimensions, and is less deformable than apparel. Unlike sealed cartons though, most shoeboxes consist of two separate pieces: a base and a loose-fitting lid. Slight variations in how the lid overlaps the base, the orientation of the box, or the friction between the two can cause the lid to shift or separate during handling. Warehouses also process hundreds of shoebox designs, sizes, and materials, with inventory continuously changing throughout the day.

One might ask, as many do, why a simple elastic band is not used to prevent the lid separating. This would allow regular suction cup grippers to lift the box from any side and place without risk. Interestingly, following trials and surveys, leading shoe manufacturers and retailers have found elastic bands and other banding methods to be detrimental to the user experience and therefore the brand. So much so, that they dictate specifically that bands must not be used by their distribution partners or anyone else dispatching the boxes.

Shoebox picker is here

This challenge highlights a broader shift across warehouse automation. Instead of relying solely on fixed programming and specialized mechanical tooling, the industry is increasingly turning to Physical AI – robotic systems that combine perception, reasoning, and manipulation to adapt to variability in real time.

A robot must determine what an object is, its position, whether it is stable, where it can be safely grasped, and how that grasp should change based on the object’s characteristics. These decisions must be made in fractions of a second while maintaining human-level throughput.

Modern AI vision systems generate detailed three-dimensional representations of each object, allowing robots to evaluate size, orientation and other physical characteristics before planning a grasp. Machine learning models then determine the most appropriate gripping strategy, while tactile sensing verifies whether the grasp was successful. If conditions change unexpectedly, the robot can reassess the situation and adapt rather than simply fail.

This ability to perceive and respond to real-time variation is becoming increasingly important as retailers seek greater flexibility from their fulfillment operations.

In fashion ecommerce product assortments change constantly, seasonal demand creates swings in inventory, and customers increasingly expect rapid order fulfillment across thousands of SKUs. Automation systems designed for a narrow set of predictable items often struggle in these environments.

One recent example to solve this is Nomagic’s Shoebox Picker, a robotic solution designed specifically to handle two-piece shoeboxes that have historically been difficult to automate reliably. The system combines AI-based perception with specialized end-of-arm tooling that evaluates each shoebox, adjusting its grasp according to the box’s dimensions, lid configuration, and orientation. The robot adapts its manipulation strategy to the specific object in front of it. The system can handle approximately 98% of shoebox SKUs while achieving picking rates of up to 450 shoeboxes per hour.

Shoeboxes may seem like a niche application, but they illustrate a larger trend. As Physical AI continues to mature, robots are becoming capable of handling increasingly diverse products without requiring every object – or every warehouse – to conform to rigid automation rules.

The future of warehouse automation will be driven by smarter robots – systems capable of understanding the physical world well enough to work within its inherent variability.

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