The HGV driver shortage is having a major impact on UK SMEs. With fewer heavy good vehicles on the road, small business owners’ stock is being delayed and is also becoming more expensive. This is resulting in SMEs being forced to increase the cost of their product/services and to lay off staff. The HGV crisis even puts Christmas at risk this year.
Simply Business states that:
Many small business owners have shared their experiences of how the HGV driver shortage is impacting their business. Finedale Foods states that. “At a time when I should be focused on recovery and rebuilding relationships with staff, customers and suppliers, I am instead focused on the inhibitors of business”. With shipping costs increased, small business owners can face more than double the cost of getting stock delivered. This is only if they can manage to get stock delivered! Small business owners; Luke and Lisa Scott, who import eco-friendly cups from Vietnam and China. The pair used to pay £750 for a container but now must pay a shocking £10,000.
In the lead up to Christmas, SMEs panic with the risk of limited stock. Customers also face the struggle to find gifts in time for Christmas. The British meat Processors Association state the industry is “short about 15,000 workers”. Turkey farmers state that there will be fewer turkeys available this year:"This Christmas, there will not be the amount of British turkeys in retailers because they're physically not going to be there, because companies, the turkey farmers have made the decision they're not going to be able to pluck them and process them."
A younger generation takes on the HGV industry
Over the last four years, 53,000 people have left the HGV industry. The HGV industry is an aging workforce, with ‘29 per cent of drivers in the sector aged 56 or older’.
However, 22-years old Becky Giles, who has been driving lorries for her family-run agricultural haulage business in Desborugh for four years, proves that the HGV industry isn’t just for the older generation. Becky has become popular on the ever-growing platform, Tiktok, gaining 150,000 followers. Becky’s aim is to encourage young people, especially women who only make up only 1% of the HGV workforce, to join the HGV industry. The HGV industry holds stereotypes that it is an industry for men to occupy. Becky has received sexist remarks but is determined to change this narrative. Also, encouraging other young women that there is a place in the industry for them.
Becky states:
Demand for action from the government
With the HGV driver shortage worsening, SMEs are demanding government action. 1,500 small business owners are demanding the government take action on this crisis to ‘prevent a Christmas crisis’. Bodies such as the Federation of Small Businesses, Confederation of British Industry, National’s Farmer’s Union and the Road Haulage Association; have joined forces. Furthermore, demanding UK prime minister, Boris Johnson needs to “personally intervene to find a full and workable solution to the critical shortage of HGV drivers”. Businesses urge Johnson to add HGV drivers to the shortage occupation list for 12 months.
Measures are being introduced by the government in an attempt to reduce the skills shortage:
- Increasing the national living wage to £9.50, from April 2022
- Giving small businesses £3000 incentives for hiring apprentices
- Extending the Kickstart scheme until March 2022
Skills funding is being increased by an extra 3.8 billion. This will cover: £1.6 billion for new T-level courses, £170 million for apprenticeships, and £550 million for reskilling adults.
Temporary visas to attract foreign workers
Despite measures for skills funding coming into practice next year, the government’s scheme to introduce ‘5,000 temporary visas to attract foreign drivers’ appears to be not as effective as expected. The scheme is allowing up to: “4,700 HGV drivers and 5,500 poultry workers to work in the UK until Christmas Eve”. Will this be enough to end the HGV crisis?
Temporary visas for foreign drivers may be beneficial in the lead-up. However, what about the long-term situation? Short-term solutions may ease the pain; however the government needs to consider how the HGV industry is going to function in the long run.
Many people are voicing their frustrations, such as Rod McKenzie, director of the Road Haulage Association. Furthermore stating that this scheme isn’t ideal for foreign workers. Further explaining because of the short timeframe of the scheme and the problem of finding accommodation. Mr. McKenzie feels long-term solutions are required for the HGV industry to recover. He states: “the industry needs long-term solutions to attract staff from within the UK, including improving pay and working conditions, and streamlining the complex testing process”.
The importance of the HGV industry to the UK economy
In his letter to the government, Mr. McKenzie also stressed the importance of the heavy goods vehicle industry. Also highlighting how significant the industry is to the UK economy:
Check out our latest blog posts on the rebuildingsociety.com platform:
- Late Repayment Process | A post-furlough look at repayment issues
- Financial promotion rules to be strengthened by the FCA
- SME tips: Dealing with International clients
- 10 Black-owned SMEs to support
Contact us
Don’t hesitate to give us a call or drop us an email here at rebuildingsociety.com. One of our friendly team members will be happy to assist you with any queries.
