The effect of regional labour market policies on the location choice of distribution centres in the Netherlands

Abstract

The logistics sector is growing in the Netherlands and the amount of DCs is increasing. The downside of this is that top logistics locations are becoming scarce and companies increasingly experience the disadvantages of a tight labour market. Policies and projects are implemented in various regions in the Netherlands to match supply and demand in the logistics labour market. This qualitative research aims at providing insights into the effect of regional labour market policies on DC location choice. Based on interviews with experts in Twente, North Limburg and Greater Amsterdam, it can be concluded that regional labour market policies focused on logistics do not influence DC location choice. Although the awareness of a tight labour market is increasing, decisionmakers expect it to be solved by short-term solutions such as calling in employment agencies. Continuation of this process may lead to increasing problems in the future since the expected growth of the economy and increase of DCs in the Netherlands. To avoid future labour market problems, policy recommendations are given and a model of the regional labour market policy making process and its relation to DC location decision is created based on the literature review and interviews.