Manufacturing and logistics industries are embarking upon a period of extraordinary change. Automation, artificial intelligence and big data, combined with consolidation and globalisation, are transforming innovation and underpinning new end-to-end processes. For organisations that are already struggling to recruit employees with the correct skillsets, this technology-led change raises new challenges alongside the opportunities.

While government initiatives must clearly play a part in helping the UK to build the workforce of the future, leading organisations within logistics and manufacturing must also embrace their social responsibility to ensure employees – current and future – are armed with the correct skills. Indeed, the educational environment still lacks the required investment in or commitment to STEM; without this investment employees will struggle to adapt to an increasingly automated workplace and organisations will lack the essential foundation for growth. 

The challenge for industry is not only to inspire the next generation and to share the message that logistics and distribution offers an array of career opportunities beyond warehouse picking and fork lift truck driving. It is also to provide young people with access to the right skills and courses within the education system.

Career diversity

An important trend which Jungheinrich wholeheartedly embraces, is the growing recognition that organisations need to be far more open minded about sourcing potential employees – and that means looking at graduates and beyond. While almost 50% of school leavers now opt for some form of degree level education, that still leaves huge swathes of talented individuals choosing a different route. 

Certainly the Apprenticeship Levy introduced by the government in 2017 reflects the need to offer school leavers more choice and better training. Jungheinrich offers a series of employment programmes, including its Sales Academy Scheme and International Graduate Programme. It has also been committed to engineering apprenticeships for many decades, and the introduction of the Levy has supported the extension of this apprenticeship model. With 50 individuals currently in one- to three-year programmes encompassing three apprenticeships: Engineering Forklift Maintenance and Repair; Business Admin; and, new to 2017, Customer Service. The focus will be to steadily introduce more apprenticeship pathways in different disciplines in the future. 

The other significant difference about the Apprenticeship Levy is that the funding is not limited to new entrants to the workplace. It can – and is – being used to upskill and retrain existing employees, an issue which is becoming an essential component of building adaptability into tomorrow’s workforce.

Industry initiatives

An additional benefit of the new Levy model is that it provides organisations with greater control over the educational aspect of the Apprenticeship, enabling companies and colleges to foster closer relationships that should result in courses that deliver the skills required by industry. Collaboration of this kind is an important aspect of the work by industry initiatives and academies, such as the Local Enterprise Partnership in recent years. It also underpins, for example, the course development of the Northern Logistics Academy, a logistics and transport training specialist in northwest England, which delivers sector specific training and qualifications.  

Industry and education must work together in this way to help bridge skills shortages and develop the workforce of tomorrow. It’s something that Jungheinrich recognises at its most senior level of management, with two directors already on the boards for such initiatives. Logistics represents a key employment opportunity and driver for growth in the UK, so it’s crucial that businesses engage with and encourage ways to gain collaborative insight into the skills and competences required for the future. In addition to tailoring the courses towards employment needs, collaboration provides students with direct access to industry – from work placements to job opportunities.  

Workforce development culture

Given the pace of technology and operational change, it is essential to upskill existing employees. Indeed, socially responsible companies should be actively looking to create a corporate culture that enables individuals to progress. In today’s tech savvy world, many individuals will already have great digital skills and expertise, yet while technically competent and confident at home they may not realise the value of these skills to the workplace. From ensuring managers are empowered and able to spot and nurture talented individuals, to raising employee awareness, it is essential to encourage individuals to maximise their talents.

In addition to improving employee retention, a continuous focus on training and development will provide employees with the adaptability required in a changing business. It also demonstrates that a company values transferable skills: however automated a business may become, the emotional capacity and ability to manage people and complex problems will always remain and is another essential component of the education process.