Hays Logistics Personnel - April 2007

Hotspots

Western Australia:

• Demand will be high for most levels of logistics candidates, but in particular warehouse management and entry-level freight forwarders as companies expand into project forwarding to take advantage of the resources boom.
• The senior market remains active, with several state management candidates expressing interest in changing their role and unwilling to relocate interstate. Operations management, fleet controllers and transport supervisors are also in demand. Supervisory, management, operations and senior management will be key areas for recruitment this quarter.
• With solid opportunities for career advancement and salary increases evident, candidates are changing jobs regularly to improve their current situation, which is heating the demand for skills as vacancy activity increases.

Queensland and New South Wales:

• DC management is an area of demand due to the rise in large distribution centres rather than regional warehouses and an increase in automated picking technology.
• Increased line haul links between large DC's has created a need for transport management.
• Transport allocators are a major hotspot and employers are offering inflated salaries to allocators, as they remain an invaluable resource to any transport business. As a result there is a shortage of these candidates with realistic salary expectations.

Melbourne:

• Qualified wharf and rail candidates are in short supply, with little candidate flow for niche operational roles for transport companies catering to these sectors. Transport coordinators, fleet controllers and operations supervisors are in high demand within this sector. Specialised skills are not interchangeable with general transport candidates and the sector is not appealing to graduates or new starters due to the demanding hours.
• Supply chain candidates within the FMCG sector are still a sought after commodity. In particular, degree qualified supply chain planners, demand planners and inventory planners are sought at the mid and senior level since there is an adequate flow of qualified candidates but the burgeoning development and sophistication of supply chain functions means experienced candidates from a food, beverage or pharmaceutical background are in short supply.

Adelaide:

• Adelaide's demand is highest at the mid level for warehouse/DC team leaders, warehouse shift managers and logistics coordinators, due to the growth and introduction of several large scale DC's and 3PL arrangements supporting both FMCG and automotive sectors. Stock/inventory controllers have been a recent area of demand.

The coming quarter

Permanent recruitment can only increase. There will be some small derivative from the busy Easter period while a steady increase in business activity should drive requirements over the quarter.

Continued resources and mining requirements are expected in Western Australia which will create new opportunities within organisations. This will consequently create openings in established organisations as candidate movement occurs. The vast majority of positions are offered on a permanent basis, with a handful offered as temporary-to-permanent to assess skills prior to being offered permanency.

All national ports are under review to maximise their ability to receive and dispatch higher annual quantities of imports and exports. Given international trade agreements the pressure on the local ports and customs will inevitably place a focus on the shipping, customs and stevedore professional requirements.

Executive recruitment

Executive recruitment in Western Australia is very positive. At present there is a lot of interest from executive candidates who are seeking to progress to more challenging positions, which creates activity across the senior market as vacancies created by the departure of staff are filled.

Growth plans mean Western Australia's employers seek executive candidates with experience in the state as well as business development skills. This demand will continue over the following quarter as more companies identify growth opportunities in the state. With new branches opening and vacancies created for roles previously only located in eastern states, activity will heat up.

The situation is different in the eastern states. Numerous takeovers in New South Wales and Queensland's haulage and distribution market have flooded the executive market with candidates. The supply chain industry is going through a dramatic efficiency campaign and therefore high-level roles are recruited carefully and top-heavy management teams are under the microscope by stakeholders.

Victoria's executive recruitment market has also cooled in recent months due to acquisitions and mergers. Large manufacturing, 3PLs and importers in particular are aggressively purchasing whole companies and entering into joint ventures, resulting in senior level redundancies and a flood of highly skilled executives into the market.

Salaries

Salaries will continue to increase in Western Australia over the coming quarter due to increasing demand and skills shortages related to the resources boom.

In the eastern states of Victoria, New South Wales and Queensland, executives should expect to see a downturn in salaries, however most other roles are expected to receive a slight increase in salaries as candidate shortages continue. Candidates with a solid combination of both warehousing and transport experience have received a staggering jump in salary in Victoria as the utilisation of 3PLs becomes increasingly popular. A rise in mining, resources and infrastructure flagship projects with larger salaries, particularly in Queensland and New South Wales, have attracted specialist logistics professionals away from retail areas.

The candidate short nature of the market and plethora of counter offers are increasing salary pressures, however while many candidates are aware their skills are in demand, there are other ways to retain staff than solely salary increases. Loyalty bonuses, share rewards, company allowances and regular reviews are some techniques the market is yet to adopt.

Salaries in Adelaide are expected to remain steady over the quarter until the New Financial Year. Despite the greater demand for candidates, employers, particularly in the defence and resources and mining sectors, are draining the market and creating candidate shortages, which will simultaneously begin to increase salaries.

Candidate trends

Entry level and middle management candidates are in short supply, and while there has been a decline in the overall number of applicants, candidate flow is still positive for other areas of the market in Western Australia.

In New South Wales and Queensland, an increased focus on automated and computerised warehouse and transport technologies has increased the availability of candidates without WMS, MRP and SAP skills.

The demand for multi-skilled candidates continues in Victoria as manufacturers and importers move from in-house transport and warehousing to utilising third party logistics providers while cost-cutting initiatives merge roles where possible. Not surprisingly, the increase in salaries has contributed to the requirement for multi-skilled candidates. The increase in imported goods and offshore production has also seen a boost in the demand for logistics planners and change managers as employers fight to respond to industry development without disruption to the existing business.