Manpower shortage 'may hinder logistics growth'
A manpower shortage at both the management and operational levels in the logistics sector has the potential to dent the industry's rapid growth, according to Kasikorn Research Centre.
The logistics sector continues to expand in line with the economic boom in the Kingdom’s regions and the development of domestic transportation routes that will be linked to those in neighbouring Asean countries.
However, the sector might not be able to fully cash in on this advantage due to the shortage of manpower at the operational and management levels, even though vocational schools and universities are producing manpower supply for the sector at full pace, the securities house said.
KRC forecasts logistics manpower demand this year at 1.054 million people, against a supply of 951,000.
There are 38 vocational schools offering logistics and related curricula, with each having the capacity to supply 80 graduates per year on average.
At the university level, last year there were 48 universities offering a combined 90 logistics and related curricula.
They produced 16,957 students, which represented a marked improvement on 43 universities with 75 curricula and 11,830 students in 2011.
The centre said the number of new manpower graduates from logistics and related courses for management-level work last year and this would average 7,868 per annum, up from 6,553 in 2011. Of the forecast total, 3,040 per year would be from vocational schools and 4,828 from universities.
The centre suggests Thailand must address the potential shortage by focusing on the development of manpower at both the management and operational levels to enable it to meet the goal of becoming Asean’s logistics hub.
While the possible shortage of logistics manpower at the management level could, however, be a short-term problem, given that educational institutes are enlisting a greater number of students and have launched additional curricula.
KRC considers that they should also open short-term courses to serve those who graduate from different fields and want to move into logistics services.
Moreover, manpower at the operational level requires specialised skills, and the shortage in this area needs to be urgently addressed, the research house stressed.
Technology usage
KRC also suggests that logistics business operators employ technology such as warehouse management software and product transportation technology such as GPS (global positioning system) to minimise the impact of a manpower shortage, boost operational efficiency and cut costs.
Logistics services are continuing to grow, driven by expanding transportation activities both within the Kingdom and between countries, the centre said.
Given the urbanisation of Thailand’s regions, people in the provinces have enjoyed rising income levels, and this in turn has attracted retail and property businesses to increase investment in their areas.
This further boosts demand for product and raw-material transportation.
The ongoing development of Greater Mekong Sub-regional linkages has also sparked demand for logistics services. The East-West Economic Corridor of Vietnam, Laos, Thailand and Myanmar and the North-South Economic Corridor connecting Thailand with Myanmar, Laos and China are the main routes driving such a rise in demand, the centre said.
