HGV drivers shortage at crisis point, says firm
AHAULIER firm has said it could employ up to 100 drivers today, but is being stopped by a critical shortage of qualified HGV drivers in the UK.
The Owens Group, which is based in Carmarthenshire, has said several factors including Covid-19, Brexit and the introduction of IR35 have had a devastating impact on the industry.
The company is asking the Government for urgent assistance and says the shortage of HGV drivers in the UK is at a crisis point due to a combination of factors, many of them longstanding.
The group says that before the pandemic and Brexit the industry employed around 600,000 HGV drivers, with around 10% from EU member states who were living and working in the UK, but even then the shortage was estimated to be at more than 70,000.
Since the Covid-19 outbreak and Brexit, the company says many have returned to their home countries during extended periods of lockdown, and this combined with the uncertainty over Brexit and their future right to live and work in the UK, has meant they have not returned.
The group also points to the shutdown of driving tests last year, which meant only 15,000 drivers completed their training compared to around 40,000 on a normal year.
Doug Jeffery, Owens Group general manager, said: “If available, we could employ up to 100 drivers today across our depots.
“We have trucks parked up because we cannot get drivers. We are failing deliveries, something we have never done in the 50-year history of the company, and our service level KPIs [key performance indicators] have dropped off a cliff. Our transport profitability has also taken a major dive. All in all, it’s a very serious situation that needs Government support to help resolve the situation and quickly.”
Mr Jeffery added: “We have had to increase our drivers’ rate of pay by 11% and we are fortunate that 95% of our customers have supported us in our request for a rate increase.
“There simply are not the drivers available and we are all fighting for an ever-reducing pool of skilled drivers.”
Despite this, the Owens Group has just announced the acquisition of a local courier company.
Owens says the takeover of Celtic Couriers Holdings complements the existing express delivery and pallet network services provided by the company and reflects the group’s strategic objective to grow these elements of its activities in south Wales.
Celtic Couriers (CC), which is based in Burry Port, Llanelli, and operates the APC parcel network and Fortec pallet network in south-west Wales, was established in 2005 and has been owned and run since 2015 by Gareth and Cindy Jenkins.
CC will continue to trade as a standalone business, with no staff losses anticipated. The Owens Group believes the two businesses coming together will help to make the operation more efficient.
Huw Owen, group managing director of Owens, said: “I am delighted that we have added CC to the Owens
Group and I am pleased to welcome all of our new colleagues to the group.
“It is particularly pleasing to complete this acquisition in the heartland of our business and to further grow the Owens Group activities in the Llanelli area. I have always been impressed with the reputation that Celtic Couriers has in the market for customer service and I believe that Gareth and Cindy have grown the business based on the same ‘family business’ values and principles as we have always had within Owens, focusing on excellent customer service.”
Mr Jenkins, managing director of CC, added: “Operating only a small distance away from the heart of the Owens Group, we have had a bird’seye view of their success over the years and have looked on with pride
to witness the success of a local business throughout the UK.
“After initial conversations with Huw and Ian [Owen, group operations director of Owens] it became apparent very quickly both companies share the same ethos, with customers and staff at the heart of everything we do.
“The success of CC is attributed to the staff and, especially over the last year, going above and beyond what was required, especially when at times they put their own health at risk to ensure those important deliveries were completed.
“We are all excited to be joining an industry-leading organisation and are looking forward to moving the business to the next level with the full backing of the Owens Group.”