FEATURE WAREHOUSING, HANDLING & STORAGE
THE UK WAREHOUSE CRISIS AND WHAT OWNERS CAN DO TO COMBAT IT
them would mean a significant financial commitment for companies who are already facing an increasing cost per pallet. The national average price has risen from around £1.85 per pallet per week in September to over £2, with the price in London significantly higher. Warehouses must capitalise on their
existing space to increase storage capabilities without increasing financial pressures. There are some steps every warehouse-based business can take to quickly see an increase in their workspace without significant financial implications. Businesses across Britain are exploring
With the popularity of online retail continuing to soar in recent years, so has the pressure on the UK’s warehouses. This, coupled with ongoing political uncertainty has culminated in a warehouse crisis which currently sees at least 75 per cent of the nation’s warehouses at maximum capacity
A
s more and more transactions are made online, brands have been
forced to store large quantities of their stock in warehouses awaiting shipment. Not only this but, with the modern consumer expecting more from their brands, next and even same day delivery have become a necessity for many businesses. To provide such services, companies naturally have to have sufficient stock levels at all times - increasing the amount in often already well-stocked warehouses. The situation was then worsened by
labour shortages throughout the warehouse industry. The tumultuous political climate acted only to exasperate this. Meanwhile, there was a lack of developers building new warehouse space as urban land was being prioritised for homebuilding. So, British warehouses were already
feeling the strain when last August, Theresa May advised UK firms to stockpile essential goods in preparation for a no deal exit from the European Union. Lorries from the EU currently take two minutes to be checked at the UK border, compared to non-EU lorries
26 APRIL 2019 | FACTORY EQUIPMENT
which take around 20 minutes. Meaning that, even in the best-case Brexit scenario, longer waiting times for goods transportation are unavoidable. Pharmaceutical companies confirmed
last year that they were beginning to stockpile products to ensure that patients don’t miss out on essential medicines in the wake of Brexit and other businesses were quick to follow. Manufacturers and food and drink groups all confirmed that they have been building up stock ahead of the proposed exit date. But, this has naturally led to more and
more warehouses reaching maximum capacity; owners of frozen and chilled storage space say they are fully booked for months to come. The government even had to request more secure storage for medication to be built after discovering that the order for all pharmaceutical businesses to hold six weeks of supply could not be met with current UK warehouse facilities. One area of storage which still has
adequate space is in ambient warehouses, however, the storage that remains is often not in the right location for businesses. This means that deciding to store goods in
Warehouses across the UK are feeling the strain ahead of an uncertain Brexit future
the option of adding additional racks to their warehouse by narrowing aisles. Meanwhile, the importance of an effective inventory management system is growing; ensuring that no unnecessary room is taken by products which should have already left a warehouse. Storing goods in the appropriate packaging is also more essential than ever as it helps to avoid excess space being dominated by products which do not require it. But for warehouses that still find
themselves at full capacity, they should look into setting up additional warehouses to store their extra goods. However, a large warehouse capable of storing 100,000 pallets costs tens of millions in investment and takes at least three years to build. Even smaller structures, with capacity for around 3,000 to 4,000 units requires £2- 3m investment and would not be able to be constructed in time. A much more realistic solution must be found. The answer for many companies could
HTS Industrial
www.hts-
ind.co.uk T: +44 (0) 1276 462 600
be to invest in a temporary warehouse structure. Superior in efficiency in terms of time and money, a temporary warehouse can be installed in a week or less and paid for with a range of options including purchase, hire or lease - for much less than a traditional warehouse. Buildings can generally be installed directly onto existing hard concrete standing, so no groundwork is necessary, further reducing cost and installation times. And despite the name, temporary buildings can in fact offer a long-term solution; easy to dismantle and remove if warehouse demand falls, they can equally serve for years to come. As the UK warehouse crisis shows no
signs of slowing down any time soon, it is vital for warehouse owners to look for potential solutions to the pressure they face.
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