New Thames Crossing Gets Go-Ahead

The UK logistics and freight community has welcomed the news that the Lower Thames Crossing has been granted development consent by the Secretary of State for Transport.

The announcement, made by the Department for Transport, follows a detailed examination process and represents a key milestone for what is set to become a major new route beneath the River Thames, connecting Kent and Essex.

This 14.5-mile project, lead by National Highways, features two tunnels under the River Thames, aiming to alleviate congestion at the Dartford Crossing by rerouting 13 million journeys annually.

The British International Freight Association (BIFA) praised the decision, noting the long-running support from industry stakeholders.

“This is a great result for the campaign, backed by politicians and businesses, as well as BIFA, for a project that was first mooted in 2009 as a means of addressing the problems that congestion at the Dartford Crossing causes,” said Steve Parker, BIFA Director.

“Media reports indicate that work will commence in 2026 and could be complete by 2032. Our members, who manage the transport of a considerable amount of the UK’s visible trade, will be delighted.

“Delays in transit pose a risk to their reputations, and have significant financial consequences.”

The Dartford Crossing remains one of the UK’s busiest road links, and the new tunnel is expected to provide an alternative route to help alleviate traffic pressure. The decision to grant consent follows a period of extensive consultation and planning, and the project will now move into the next stages of development.

The Labour MP for Dartford, Jim Dickson said “This decision will unlock economic growth across the country and finally deliver a solution to the traffic chaos faced by my constituents on a daily basis.”

According to the government, the crossing is a Nationally Significant Infrastructure Project and is designed to support long-term growth, enhance road connectivity, and reduce congestion in a key part of the strategic road network. Construction is slated to begin in 2026 or early 2027, with the crossing expected to open by 2032. This development promises to enhance connectivity between the south and the Midlands, linking key ports and stimulating regional economic growth.

Read Similar…

Industry Urges Supply Chain Resilience After Heathrow Closure

Can Mobile Robots Solve Skills Shortage?

With the labour pool for warehousing running dry, it is time growing warehouse operations look to mobile robots to share the work, explains Frazer Watson, VP-Sales UK/Ireland at iFollow.

Autonomous Mobile Robots (AMRs) offer one of the more cost effective and flexible automation solutions to enable logistics operations to optimise their labour force. This is particularly the case when it comes to the intensive process of accurate order picking and the energy sapping and time consuming necessity of moving goods around a warehouse.

Finding ways to optimise labour has never been more relevant as a list of ingredients is being stirred into a skills shortage stew, which is threatening to take a considerable toll on UK organisations. In addition to sustained low levels of unemployment, the UK labour force remains smaller than it was prior to the Covid pandemic, according to research company Fitch Ratings. In its special report called: ‘Shortfall in UK Labour Supply to Persist’ it detects a ‘curious movement in the UK work demographic’, with a significant proportion of over 50s having left the workforce, and estimates that had the UK’s labour force continued to grow at its 2015-2019 trend rate, it would be around 2.5% bigger than it is today. The Recruitment & Employment Confederation estimates that if labour shortages are not addressed, the UK economy will be £39 billion worse off each year from 2024.

While the UK is not unique in experiencing shortages of workers, numerous commentators in the logistics sector point to changes following Brexit that have reduced the available pool of EU-based workers. This is perhaps a more salient issue for UK warehousing, which is among the sectors hardest hit by the labour shortage as it continues to expand on the back of developments such as supporting continued growth of ecommerce operations. Adding weight to this claim is a survey published last summer by the Chartered Institute of Logistics and Transport (CILT). It revealed that 86% of companies across its membership had experienced warehouse operative staff shortages in the prior two years.

Furthermore, the shortage is combining with persistent inflation to drive upward wage growth. Such a situation can potentially influence broader logistics decisions, such as prioritising labour availability over other strategic business decisions when it comes to locating warehouse operations. Locations that have traditionally attracted distribution sheds have created strong competition among employers for a dwindling pool of labour.

Improving productivity in warehousing through the route of increasing wages is unlikely to be sustainable for many, while investing in training has always been a less than a popular notion in UK business. Faced with the likelihood of long-term staff shortages, many UK warehouse and distribution centre operations are already turning to technology as an aid.

Technology is transforming warehouse work

As entire supply chains become ever more connected, technology enables retailers and their logistics providers to deliver improved service to consumers. Established technologies already include Warehouse Management Systems (WMS), data capture, voice recognition, RFID, pick by light, and all kinds of automated solutions for storage, retrieval, transport and packaging. The advent of mobile robots has moved this on a further step.

Rarely does technology replace people completely, in most instances it complements existing staff, creating collaborative working. This is certainly true of mobile robots, which can take on the more onerous, laborious and time consuming, yet simple tasks such as transporting goods around a warehouse. This leaves their human colleagues to be deployed where they are more productive, such as at the pick face, and creates a vastly more efficient way of working where more can be done with fewer people. Consequently this reduces the pressure on finding staff.

This pressure is particularly heated during peaks, when it’s not just a question a finding people in numbers sufficient to cope with increased orders, but staff that can hit the ground running to maintain service levels. Mobile robots carry on their tasks irrespective of conditions and hours. When businesses scale up or hit peak trading, extra robots can be easily added. This also allows a stepped approach to automated warehouse functions, beginning with one unit and building up a fleet as required, or units can be switched with different capacity models. And because AMRs do not require fixed infrastructure, their routes and duties are extremely flexible, with the programming of tasks via an intuitive fleet management interface.

Optimising labour with mobile robots

Premium mobile robots will have virtues that will allow labour to be optimised even further. An iFollow AMR, for example, can transport two roll cages at once, to a total load of 1,500 kg. This means a picker can work with multiple AMRs simultaneously, so potentially, on a single pick walk an operator supported by two AMRs could be assembling the orders for four different stores or customers. Through this kind of collaboration with the worker, which iFollow calls ‘Duo Picking’, the robot not only frees up a role but it will also reduce time required to carry out a pick. This can bring up to 50% improvement in pick rates by comparison with purely manual methods.

Far from replacing people completely, actively working with technology in ways like this will also increase the appeal of warehouse jobs to tech-savvy young people – a demographic that has the sector has found hard to attract and retain. Unfortunately, warehouse work has acquired a reputation for being hard on employees, low paid and has never ranked among the most desired of occupations. However, unlike many other sectors competing for the same limited labour resource, the work is full time and offers great career path opportunities. Indeed, many of today’s Logistics Managers started out on the warehouse floor. Working with mobile robots adds an attractive and interesting element into the job.

So mobile robots not only offer a collaborative solution that means fewer staff are required, particularly during peaks, but they also add a high tech element to warehouse work that makes the sector more attractive to the kind of recruits an increasingly technology-driven industry desperately needs. Becoming less reliant on labour certainly offers a practical proposition and joins other long-term gains from investing in reliable mobile robots. Their predictable costs, productivity boosting capabilities and flexibility in deployment to handle changes in business are a great way for warehouse operations to reduce their reliance on the availability of people.

Acquisition creates UK’s largest blue-collar labour provider

Recruiter Challenge-trg Group has completed a deal to become the largest, privately-owned blue collar labour provider in the UK. It has acquired PMP Recruitment from investment house Twenty 20 Capital, for an undisclosed figure, bringing group revenues to over £0.75bn.

The combined knowledge and experience of the Group will offer specialist, bespoke end-to-end logistics solutions in recruitment, training, driving, warehouse operatives and haulage, underpinned by its own supply chain technology.

Tom Cropper, Group CEO of Challenge-trg, said: “This is a really exciting time for Challenge-trg and PMP Recruitment. By coming together and pooling our resources and experience, we can offer our clients the ultimate service in our sector. Incredibly, in our first year of trading in 2011, Challenge-trg revenues stood at £750k; post deal and 10 years on, we’ll hit 1,000x this number – a real achievement.

“As a business, our vision and values align – PMP Recruitment is a leader in establishing protocols in the abolition of modern slavery and Challenge has focussed on creating a work environment that develops and supports our employees. Through the combined passion for service and continual innovation and investment in technology and training provision, this merger is undoubtedly going to create opportunities for personnel and clients alike.”

The company will now employ over 500 group operational staff and over 40,000 temporary workers. Being trusted by these organisations, Challenge-trg believes it illustrates the company’s commitment to leading the way in ethical business decisions and ESG agenda.

Jamie Reynolds, managing director of PMP Recruitment (pictured on right, alongside Richard Cropper and Tom Cropper), who joins the Challenge-trg Group board to support long-term client relationships, transition and integration, said: “This deal creates a business that can deliver seriously tailored support to our clients. We’re very proud to have made this happen, we believe it means we can create many more jobs across the country at a time when employment is desperately needed. Our values are paramount, and Challenge-trg Group matches all of them. I’m very much looking forward to the future.”

Call for EU nationals to alleviate driver shortage

If Ministers don’t act now, the UK HGV driver shortage could lead to food waste and inflation; Kate Lester, CEO and founder of Diamond Logistics, reflects on this urgent issue and issues a bold message for Government.

“According to the RHA, prior to the pandemic, there was a HGV driver shortage in excess of 60,000. That figure has now reached 100,000.

“Two years ago, as CEO of Diamond Logistics, I was invited to participate in an All-Party Parliamentary Group (APPG) alongside other representatives from logistics and transport to discuss the driver shortage, set to worsen as Brexit loomed. The RHA and I presented a petition to Ministers, asking them to address the problem urgently.

“Earlier this month I attended another APPG event – a roundtable discussion on the driver shortage led by Ministers Baroness Vere and Mims Davies – and I’m sorry to report, that despite the recommendations from the sector two years ago, very little progress has been made.

“It is critical now. We cannot recruit drivers, let alone fulfilment and ancillary staff. The South East [of England] has been hit particularly badly.

“Brexit and the COVID-19 pandemic has created the perfect storm. The magnitude of the crisis is now driving the discussion as a matter of urgency. The pandemic has also highlighted the vital importance of our logistics infrastructure and how essential we are. And you know what? We demand to be listened to.

“At the roundtable event, hosted on Microsoft Teams and attended by the Department for Transport (DFT), Department for Education (DFE), Department for Work and Pensions (DFWP), The Road Haulage Association (RHA), The Federation of Wholesale Distributors (FWD), Logistics UK, the DVSA and yours truly, we debated the topic and put forward our suggestions. I hope this time more action will follow.”

Catching-up on driver training

“Like everything else, vocational training of drivers stopped during the pandemic. The DVSA is pedalling hard to catch-up and has increased capacity to an average of 3,000 practical tests each week.

“Great effort, but there is too much of a lag for this to be cured within a reasonable time scale.

“Industry colleagues and I expressed support for utilising foreign labour in the short term to address immediate issues. However, it was highlighted that this would mean significant change to existing policy.

“Logistics UK suggested a short-term broadening of the seasonal worker visa for this summer for drivers (as an alternative to including drivers on the shortage occupation list).

“If we rely on British nationals alone, it will have a huge inflationary impact. Higher wages equates to higher logistics costs which will raise food prices. With inflation above 2% already, this is a big problem.

“The concept of simply extending driver hours is also not a long-term answer. Most drivers have been maxing out their hours in the last year. Many are exhausted. We need more people. We can’t simply expect less drivers to do more. It’s dangerous and unsafe.

“And let’s think about the driver as a person for a minute shall we? The facilities they have access to are abysmal. Where do we expect lorry drivers to eat, drink and sleep?

“DWP representatives referred to a survey of 1,300 drivers in which 68% said they would rather have a better work/life balance than a 5% pay rise. So longer hours probably won’t tickle anyone’s fancy and is likely to drive drivers away.

“The impact of the driver shortage is happening now. Seeds are expiring, waiting and missing planting times. Food isn’t arriving on time so shelves are increasingly empty. Celery for example will be in very short supply next year. This will get much worse.

“So what’s the next step in addressing the driver crisis?

“Earlier this week, and following the APPG meeting which didn’t fill anyone with confidence quite frankly, leaders in logistics and transport signed an open letter from the RHA to Prime Minister Boris Johnson.

“And here is our list of demands:

Access to EU and EEA labour. The introduction of a temporary worker visa for HGV drivers and for this occupation to be added to the Home Office Shortage Occupation List. DEFRA already have arrangements in place that support our harvest periods when foreign labour restrictions are eased for specific demand. The same principles should be applied.

Government needs to work with the industry to help address the broader issues around the skills shortage. We must work collectively to achieve a sustainable way of recruiting and training a homegrown workforce so that our reliance on foreign labour dissipates over time. We ask that a taskforce is immediately established to include representation from all of the relevant areas of Government and industry to help drive this change at the pace that is so desperately needed.

The DEFRA Food Resilience Industry Forum, chaired by Chris Tyas, helped to ensure the nation’s supply integrity throughout the pandemic. This was recently disbanded. However, in view of the growing crisis, it must be re-established at the earliest opportunity.

“Logisticians are problem solvers and practical thinkers. It’s what we do. I just hope our request for urgent sensible action on behalf of the profession are heard.”

 

Subscribe

Get notified about New Episodes of our Podcast, New Magazine Issues and stay updated with our Weekly Newsletter.