Stockpiling puts strain on UK warehousing
Will we have enough warehousing space in the UK if we get a no-deal Brexit?
I read an article in The Times recently that said Mondelez, the company who own Cadbury, are stockpiling chocolate because of the possible risks of problems at UK ports caused by the uncertainty surrounding Brexit.
The image of a warehouse full of chocolate stirred up childhood memories of Charlie and the Chocolate Factory and put a smile on my face…but of course, in reality, the message contained in the story is a serious one.
The Cadbury story is reflected across the UK with many reports of manufacturers stockpiling key components to protect their workflow and ensure production can continue if the threatened log jam at the ports actually happens after Brexit on March 29th 2019.
Apart from the warehousing issue, firms are using up cash to buy components early to keep them in storage, rather than investing in areas such as research, marketing and product development. It’s a less efficient model than we have now and does not bode well for the economy. However, production lines ceasing to operate due to components stuck at the ports would surely have an even worse impact?
“By the time Britain leaves the EU, companies will have piled up an extra £38bn of goods”, according to an estimate by the Centre for Economics and Business Research (CEBR).
Warehouse capacity has been much scarcer in recent years with the rise of online retailer and Brexit is now putting even greater pressure on resources.
Our advice is that if you want warehouse space in the near future, get that space reserved now.
“Demand has grown at unprecedented rates, which makes life tougher for anyone who needs to take on more space,” said Andrew Marston of the property consultancy CBRE.
The best advice we can give?
If you already have warehousing space, then we suggest maximising the space you have. Put down solid, long-term roots and avoid being forced to look at potential moves in a marketplace driven by increased demand and lack of stock.
If you don’t have warehousing space then now would be a very good time to look into it, before your options become limited.
Here at Masters, we are aware that our customers may need more space and we will do what we can to help. We have limited availability for the rest of 2018 and are already taking bookings for space in 2019. We would encourage anyone who is thinking they may need to store additional items to protect themselves against any potential delays caused by the increase in red tapes at the ports, please get in touch with us as soon as possible.
Speak to a member of our team for information on how Masters Logistical can help prepare you for Brexit – 01353 648 222.
Business & Commercial Development Manager