Guidance & Support

In a significant boost to the UK automotive industry, Stellantis, the parent company of Vauxhall, has revealed plans to commence the production of electric vans at its Luton factory next year. This strategic move not only secures the future of 1,500 jobs at the site but also marks a pivotal step towards sustainable manufacturing within the sector.

The decision comes after Stellantis previously warned that it might close its UK operations if tariffs were introduced on UK-EU exports. However, a last-ditch agreement between Westminster and Brussels has facilitated this new investment, ensuring the Luton plant's operational continuity.

The Luton facility is set to produce up to 100,000 medium-sized electric vans annually. This production line will focus primarily on right-hand-drive vans for the UK market, including popular models such as the Vauxhall Vivaro, Peugeot e-Expert, Citroën ë-Dispatch, and Fiat E-Scudo. While these models share near-identical designs, their sales strategies are tailored to different national markets.

This announcement follows Stellantis' commencement of electric van production at its Ellesmere Port factory in Cheshire. The shift from manufacturing passenger cars to commercial vans at Ellesmere Port was a strategic move that prevented the facility's closure, highlighting Stellantis' commitment to adapting its operations in line with evolving market demands and environmental considerations.

During National Apprenticeship Week [5-11 February], UK Transport Minister Guy Opperman MP celebrated the first successful year of the Generation Logistics campaign, highlighting its role in changing the image of the logistics sector and promoting it as a key driver of economic growth.

Minister Opperman praised the joint efforts of the government and businesses in making logistics careers more attractive and emphasised the importance of attracting new talent to maintain a strong supply chain for the economy's health.

The campaign's achievements were showcased at a parliamentary event attended by representatives from over 50 companies and trade associations, along with young Generation Logistics ambassadors. These ambassadors are crucial in engaging with future employees and highlighting the sector's varied opportunities.

A new careers guide for teachers and advisers was introduced at the event, aiming to increase awareness of logistics professions. Bethany Windsor, the campaign's program director, noted an 11% rise in awareness and a 140% increase in positive sector perceptions in the first year. The initiative, supported by sponsors and ambassadors, plans to further reach out to educators and integrate logistics into school curriculums, positioning logistics as a top career choice for young people.

In a bold heist on the M6 in Staffordshire, thieves made off with technology goods valued at £269,000 from a lorry parked at Keele Services, all while the driver was asleep. The incident, involving the theft of 24 pallets loaded with cameras and other valuable tech items, occurred between midnight on January 23 and 3 a.m. the following day.

In a calculated move, the thieves also commandeered a white Volkswagen panel van from a flat-bed truck within the same parking area, utilizing it to ferry away the stolen loot. Staffordshire Police later reported the recovery of the stolen van.

The local law enforcement has since launched an appeal to the public, urging anyone who might have witnessed the theft or possesses any relevant CCTV or dashcam footage from around the area to come forward. The police are particularly keen on piecing together the events that transpired during those critical hours to trace the perpetrators.

A spokesperson for the Staffordshire Police highlighted the significance of the stolen goods and the audacity of the crime, given it was executed while the truck driver was asleep. The police have conducted initial investigations at the scene, including reviewing CCTV footage.

Two leading road haulage firms, Youngs Transportation & Logistics and North West Cargo, have faced insolvency, resulting in significant job cuts. The industry is grappling with economic downturns and global disruptions, as outlined by Leonard Curtis’ director Alex Cadwallader. Leonard Curtis took control of both companies on January 31st, after they struggled with cash flow problems amidst a challenging global and domestic economic landscape.

Youngs and North West Cargo, with a history spanning over 50 years and a workforce of 250 across five locations, had a combined annual revenue exceeding £40 million. Despite managing to sell a Northwest site to save some jobs and executing additional sales to keep operations afloat, the companies have had to make considerable redundancies due to the closure of other sites.

The logistics sector's woes are attributed to the tough economic conditions and shipping challenges, forcing Youngs and North West Cargo into administration. Efforts to sell the companies as a whole were unsuccessful, though parts of the business were saved through smaller transactions. The administrators are now aiding the affected employees.

This situation reflects a broader distress within the transport industry, with several other logistics companies also entering administration recently. The outlook remains bleak, with expectations of continued difficulties in the UK logistics market through the first half of 2024.

The UK hit a notable milestone with the registration of its millionth electric vehicle (EV) last month, despite a notable decrease in sales, indicating a mixed picture for the nation's net zero ambitions. Sales to individual consumers dropped by 25% in January 2024, part of a wider 16% fall in all new car sales to private customers, as reported by the Society of Motor Manufacturers and Traders (SMMT).

Calls have intensified for government incentives, such as halving VAT on EVs, to drive consumer adoption. Over 20,000 battery electric vehicles were registered in January 2024, a 20% year-on-year increase, predominantly driven by fleet purchases, which saw a demand surge of over 40%. EVs comprised 14.7% of all new car sales in the UK for January, underscoring a growing but still insufficient market penetration to meet environmental targets.

The SMMT emphasises the need for supportive policies to expedite EV adoption, including electric heavy goods vehicles (HGVs), which are vital for reducing transport emissions. The higher upfront cost of EVs, including HGVs, remains a barrier, despite their lower running costs. Last year, the government's decision to delay the ban on new petrol and diesel car sales to 2035 drew mixed reactions, highlighting the challenges and opportunities in the transition to electric mobility.

Despite a decrease in private car registrations, overall new car market growth in January was buoyed by a significant increase in fleet sales, which now represent over 60% of all new car registrations. This reflects a shift towards more sustainable vehicle options in the UK's journey towards net zero emissions.

HGVC has been reappointed to lead the Government’s extended Skills Bootcamps in HGV Driving, aimed at training thousands in England to become HGV drivers over the next two years. The program, initially launched in December 2021 and extended to February 2026, includes an additional £50 million in funding.

The initiative focuses on helping employers upskill their staff to address the driver shortage. HGVC aim to primarily assist drivers in obtaining Category C and Category C+E lorry licences.

Since its launch, HGVC has trained around 1,800 drivers, with many securing jobs with starting salaries up to £40,000. The training programs have attracted a diverse group of trainees, including a higher representation of women and ethnic minorities compared to the overall UK HGV driving sector. The extended Skills Bootcamps will be available from February 2024, targeting businesses looking to upskill existing staff. Training is accessible at 60 locations nationwide.

James Clifford, CEO of HGVC, praised the initiative as a critical step in addressing the long-term driver shortage and highlighted the opportunity it presents for employers to upskill their staff with government support. The Skills Bootcamps form part of the Government’s Lifetime Skills Guarantee, with a total commitment of £257 million for various Skills Bootcamps.

Young drivers in the UK are grappling with record-high car insurance costs, with some premiums reaching nearly £3,000. Data from confused.com shows a significant rise in insurance rates for 17-20 year olds, increasing by over £1,000 since last year. The overall average increase in car insurance is 58% compared to last January.

Steve Dukes, CEO of confused.com, links the rise to increased claims post Covid, higher prices for second hand cars, and increased repair costs. The demand for used cars spiked during the pandemic due to a shortage of computer chips and manufacturing materials, leading to a 31% price increase in March 2022 as reported by the Office for National Statistics.

Average insurance premiums for all drivers have climbed by £366 to £995, with 17-year-olds now paying around £2,877 and 18-year-olds facing an average of £3,162. Strategies to mitigate costs include adding experienced drivers to the policy.

The Association of British Insurers (ABI) recognises the steep costs but suggests there are ways to reduce them. They stress the necessity of having insurance coverage and advise those struggling to consult their insurers. The ABI points out that insurance costs correlate with risk levels, and younger drivers typically have higher claim costs.

Developer Chancerygate has proposed the construction of a 59,500 sq. ft Grade A Urban Logistics and industrial space in Clayton, East Manchester, named Eastside. This potential development could generate up to 60 jobs. The scheme will feature nine units, varying from 4,000 to 14,000 sq. ft, available for purchase or lease, with an estimated development value of £15m.

Located on a 2.3-acre site, previously home to Walkers Printing facility, Eastside is conveniently situated on Crabtree Lane, less than three miles from Manchester City Centre and close to the M60 motorway. The area already houses a retail development with Aldi, Subway and Greggs.

Adjacent to Manchester City Football Club’s Etihad campus and the forthcoming £365m Co-Op Live entertainment venue, the Eastside project aligns with the Eastlands Regeneration Area. Each unit will incorporate environmentally friendly features like electric vehicle charging points and solar panels, aiming for an excellent energy efficiency rating.

Chris Brown, Chancerygate's development director, emphasised the critical need for quality industrial and logistics space for SMEs in East Manchester. He noted the development's strategic location, making it attractive across various sectors and contributing to the area's ongoing large-scale regeneration.

Chancerygate is actively involved in developing approximately 2.65 million sq. ft of urban logistics space across 19 sites from Edinburgh to Chichester.

In the last year, there's been a notable increase in aggressive incidents targeting commercial fleet drivers, both from thieves and the general public. This issue was the focus of a recent event by SureCam and PeopleSafe, where experts in fleet management and safety gathered to discuss strategies for driver and lone worker protection.

Lee Jackson of the Association of Fleet Professionals reported more frequent attacks, especially in high-risk areas such as Greater London with people often targeting vehicles and high-end equipment. Mark Ryder from PeopleSafe also noted a significant rise in road rage incidents, leading to harassment of commercial fleet drivers during their routine duties.

Philip Read, Head of Safety, Health, Risk & Resilience at G4S added: “While serious incidents within our health and patient transport services, as well as elsewhere in the business, are often sporadic, they are on the rise and can represent a significant threat to our drivers and passengers. The safety of our staff and patients is paramount, and with many of our drivers single-crewed and working autonomously, so our challenge is how we address this issue and provide the level of lone worker protection needed?”

The panel focused on the need for cultural and organizational shifts in the fleet sector to improve lone worker safety. They emphasized the importance of risk assessment, understanding threats, and developing effective safety plans. Key strategies identified included sharing experiences, reporting hazards, and conducting safety training.

Global logistics giant DP World is investing £15 million in a new welfare facility for heavy goods vehicle (HGV) drivers at its Southampton hub, according to reports. The construction of the 7,500 square metre site has commenced, featuring amenities such as a restaurant, cafe, bathrooms, showers and secure parking for over 120 lorries with 24-hour security.

Southampton City Council has approved the project, anticipating benefits such as alleviating residential traffic concerns and reducing transport emissions in the area. DP World acquired a land lease from port operator Associated British Ports earlier in 2023.

Jonathan Scott, DP World Southampton's Head of Engineering, emphasised the importance of investing in the well-being of drivers, stating, "With our £15 million investment in this outstanding new facility for drivers, we are contributing to a crucial part of the supply chain. Recognising the pressure to manage costs, maintain reliability, and improve speed, we understand the significance of taking care of the people on whom supply chains depend.

DP World, committed to investing £1 billion in UK operations over a decade, currently manages logistics and port facilities in 78 countries, handling an estimated 10% of global trade. In September of the same year, the company introduced the Modal Shift Programme in the UK, encouraging cargo owners to reduce carbon emissions by transitioning from road to rail.