Labour and power resilience major challenges for UK’s logistics sector

Labour shortages, reliable power supplies, and the need for attractive site features to recruit and retain workers are the main challenges facing the UK logistics sector.

Logistics - Tritax Big Box

recruit and retain workers are the main challenges facing the UK logistics sector.
These are the main conclusions from the "Future Space Focus" report from UK logistics real estate investor and developer Tritax Big Box, which is part of a larger annual initiative.
Labour shortages, driven by factors like long-term sickness and competition, are pushing companies towards automation. This has led to increased competition for workers, with a majority of logistics occupiers reporting labour challenges. Rising employment costs further exacerbate the issue.
This increased reliance on technology raises energy demands, making power resilience crucial for facilities. The report also emphasizes the evolving nature of logistics jobs, with growing demand for skilled tech workers alongside traditional roles. Companies are increasingly prioritizing employee well-being and offering amenities like gyms and flexible working to attract and retain talent.
Ultimately, these factors, including automation and the need for modern facilities, are driving demand for new, well-located logistics spaces, which has accounted for two-thirds of logistics real estate demand since 2010.
Henry Stratton, head of Research at Tritax, said: 'As logistics real estate occupiers look to plug the labour gap, they’re turning to technologies such as automation that are energy-intensive. A large-scale, fully automated warehouse might use five times the electricity of a traditional warehouse on a per square foot basis. This increasing demand sits within a broader drive towards electrification, and as a result, power resilience is increasingly top of mind for occupiers. Power, people, planning, and – as ever – place are priorities for logistics occupiers and, by extension, for investors looking to future-proof their assets. Buildings must meet these requirements today, with the flexibility to accommodate more change tomorrow.'"