Why Labour is Important to Europe’s Logistics Sector

Contributors

Justin Hildebrandt
Managing Director, Development

Karen Martinus
Associate, Research

December 2018

Introduction

One of the key challenges facing the logistics sector is the availability of suitably skilled and priced labour. Given relatively low unemployment and a shrinking workforce within Europe, the supply of labour has become a critical location decision factor.

This issue is particularly acute for companies requiring large logistics facilities, which often demand significant numbers of employees. Whilst the balance between human and technology based labour will undoubtedly change, we believe people will remain a critical component of logistics supply chains.

Europe’s logistics sector has been at the centre of an industrial upcycle and Europe’s economic fundamentals remain supportive of logistics demand. As outlined in our first Insights edition earlier this year the logistics/industrial sector is also benefitting from secular tailwinds such as the rise of e-commerce and shifting space demands. European e-commerce sales are predicted to see double digit annual growth out to 2021.1 This is welcome news for the logistics industry, as demand shifts away from traditional retail centers towards logistics and reinforces the critical importance of securing logistics locations with sufficient labour capacity.