Rising haulage costs could deepen HGV driver shortage
HGV driver shortages continue to pose a significant challenge for the road haulage industry, with research forecasting a need for 400,000 new drivers each year to keep pace with economic demand.
The ageing profile of the UK’s HGV workforce could make recruitment more difficult. Fewer than 2% of HGV drivers are aged under 24, while more than 55% are between 50 and 65, highlighting the need to attract younger people into the profession as more experienced drivers approach retirement.
Against this backdrop, industry experts at Radius have identified three areas putting pressure on haulage businesses and potentially making it harder to recruit and retain drivers.
Research from Dojo’s Inflation Index found that training costs in the road haulage industry have increased by 100% over the past decade.
For operators looking to bring new drivers into the industry, the cost of obtaining the necessary qualifications represents a significant investment. This is particularly relevant as businesses seek to attract younger entrants to replace an ageing workforce.
Insurance costs for the haulage industry have increased by 57% over the past 10 years, according to the research.
The issue is particularly relevant when recruiting newly qualified or less experienced drivers, who can attract higher insurance premiums. As operators look to broaden their recruitment pool, the additional cost of insuring inexperienced drivers could become an important consideration.
Staffing costs in the haulage industry have risen by 44% in the past year, with factors including increased employer National Insurance contributions in 2025 contributing to the increase.
At the same time, competition for qualified HGV drivers is putting pressure on wages as operators compete to attract and retain experienced personnel. For labour-intensive haulage businesses, the combined effect can place further pressure on already tight margins.
Jolawn Victor, Divisional Chief Executive Officer of Telematics at Radius, believes operators need to look beyond recruitment costs and identify efficiencies elsewhere in their businesses.
He said: “As rising training, insurance and staffing costs continue to increase, haulage firms face a growing financial barrier to recruiting and retaining the drivers they need to match demand. This makes it increasingly important for businesses to find efficiencies elsewhere.
“Investing in technology such as telematics can help firms to streamline their operations by giving them the data they need to make informed cost-saving decisions. For example, real-time insights into vehicle location can reveal opportunities to optimise routes and reduce fuel consumption, while monitoring driver behaviour can highlight inefficient habits like idling, harsh braking and acceleration among individual staff members.”
For fleet operators, telematics can provide a clearer picture of how vehicles are being used and where operational efficiencies can be made. Route data can help identify unnecessary mileage, while driver behaviour information can highlight habits that affect fuel consumption and vehicle wear.
These improvements will not solve the underlying HGV driver shortage, but they could help operators make better use of existing vehicles and drivers while reducing avoidable expenditure.
With more than half of the HGV workforce aged between 50 and 65, attracting the next generation of drivers remains a pressing issue for the road haulage sector. Finding ways to improve operational efficiency could therefore become increasingly important as businesses balance recruitment needs with the wider cost of running a commercial fleet.
