The Talent Crunch in UK Supply Chains: A Top Challenge for SMEs

18 August 2025

Warehouse workers collaborating to manage inventory in a UK distribution centre. UK logistics and warehouse SMEs are navigating a perfect storm.  Rising inflation and operational costs rank as the #1 concern for 81% of small transport and logistics firms, according to logisticsit.com, but recruiting skilled talent is not far behind. In fact, 42% cite hiring and retention issues as a top challenge, logisticsit.com. A recent survey found 77% of these businesses struggled to fill positions in 2024, with nearly a third calling hiring “very difficult” logisticsit.com. Left unchecked, this skills gap could threaten operations. Industry experts warn that the UK could be short as many as 50,000 HGV drivers if nothing changes, mhrglobal.com.

Globally, these concerns resonate. 95% of supply chain leaders surveyed see labour shortages (along with inflation) as critical disruptions to manage truecommerce.com. For SMEs in particular, a skills crunch quickly translates into operational risk. Smaller logistics firms often lack the scale and training budgets of larger competitors, so vacancies for drivers, warehouse managers or planners have an outsized impact. With veteran managers retiring, a knowledge gap is also growing, a situation experienced professionals now advise filling through mentoring and succession planningscmtalent.com.

Addressing the Talent Gap: Key Strategies

• Embrace hybrid/remote hiring: Offering flexible or part-time work enables smaller logistics firms to tap talent beyond local marketsscmtalent.com. Post-pandemic work models mean even supply chain roles can draw on a broader, often younger workforce.
• Invest in skills development: Upskilling existing staff and partnering with training providers helps fill gaps and improves retention. Building on-the-job training, apprenticeships or digital literacy programs can make your team more adaptable.
• Use fractional supply chain leadership: Hiring part-time or interim supply chain executives provides high-level strategy and mentorship without the cost of a full-time hire scmtalent.com. These experienced leaders can guide urgent transformations, train your team, and plug expertise gaps precisely when needed.
• Cultivate an attractive workplace: Highlight career growth, inclusivity and work-life balance to make supply chain roles appealing. Emphasizing training opportunities and a clear development path, for example, showcasing how employees can advance into leadership, helps logistics companies stand out mhrglobal.com.

SMEs that adopt these tactics find they can compete more effectively for scarce talent. By broadening the hiring pool, upgrading staff skills, and leveraging flexible leadership models, companies can turn the labour shortage into an opportunity for resilience.

Partnering for Supply Chain Success

For UK logistics businesses facing these challenges, specialised support can make the difference. At Supply Chain Leaders Recruitment, we focus on the UK supply chain sector, connecting forward-thinking companies with the skilled professionals and fractional leaders they need. Whether you’re recruiting drivers, warehouse managers or C-level supply chain executives on an interim basis, our expertise and network accelerate the search. Contact us today to build the talent pipeline and leadership depth that will keep your operations running smoothly and competitively.