Warehouse Demand for Space in Britain

The Financial Times has recently reported that Brexit-related stockpiling is driving up the cost of short-term space in UK warehouses, as companies across the country guard against a no-deal outcome that could cause gridlock at ports and chaos in cross-border trade.

Companies of all sizes and in all sectors are laying plans to hoard raw materials, components, packaging and finished goods. Solutions are becoming more difficult to find with panic hoarding of warehouse space.

The voracious growth of e-commerce has devoured warehouse space for rent in recent years. Experts report of Amazon’s domination of the market in terms of demand between about 2014 and 2016, which has resulted in a fall in the vacancy rate for warehouses of over 100,000 square feet.

However, the market is responding to this potential shortfall.

New warehouse distribution developments include:

  • Logistics North is developing a hub for both manufacturing and logistics operations, covering 4 million square feet
  • Nestle is to open a new £55m warehouse distribution centre (Food Manufacture)
  • Lidl UK has acquired a 38-acre site in Gildersome, Leeds, for a new regional distribution centre (Construction Enquirer)
  • International developer Gazeley is to build a new 375,000 square feet distribution centre in the South West after signing contracts with B&Q parent company Kingfisher (Insider Media).
  • Kier has secured a major £39m distribution hub in Bedford as its growth in the industrial sector continues (Kier Group plc)

However, it is the Midlands that have created a reputation as the logistics and warehousing capital of England, if not the UK. The BBC report that one region cashing in on the opportunity is the East Midlands. The arteries of major motorways and rail connections run through Northamptonshire, Leicestershire and Derbyshire. As a result, it’s rebranding itself the “Golden Triangle” of logistics.

The region has mass appeal because goods can reach 90% of the population in England and Wales within four hours. Marks and Spencer sounded the starting pistol for the area in 2014 with its £200m fulfilment centre at Castle Donington. A little further south, Magna Park near Lutterworth is home to Disney and Asda. Tesco has a huge operation at Daventry International Rail Freight Terminal (Dirft).

Construction is underway of 11 mammoth units at the East Midlands Gateway, which is poised to hostnames such as Amazon, Shop Direct and Nestlé, as well as creating 7,000 new jobs. Its position is largely down to the combined forces of new freight railway lines and the shift in focus by East Midlands Airport, now handling as much freight as passengers. It is the only unrestricted 24/7 airport in the country.

“The passenger flights tend to be during daytime hours, then overnight the site really comes to life with the cargo,” explains Karen Smart, managing director of East Midlands Airport.

“We’ve seen phenomenal growth, maybe 19 to 20 planes an hour, taking cargo in or out of the country ready for that next-day delivery. It’s great for business and great for the region.”

Rebecca Wearn, a Business reporter for BBC News goes on to stress that other warehousing hotspots include the M62 corridor in north-west England, and Glasgow Prestwick Airport, which is expanding to support distribution businesses.

With Brexit looming this means that you urgently require the services of a company that specializes in sourcing warehouse space & logistics services within the UK and Ireland. That company is Whichwarehouse.

Contact Whichwarehouse for any requirements relating to storage, fulfilment and distribution.  We even have access to industrial properties that are available for rent (short and long-term) as well as office space on site (at some locations) so you can be close to your products but still being able to concentrate on other aspects of your business such as sales, marketing and procurement.

The Whichwarehouse directory has an established network of experienced and professional third-party logistics and warehouse providers covering locations throughout the UK and Ireland.  We can assist with your logistics requests for anything from self-storage to pallet or bulk storage through to a complete supply chain solution for your products, even delivering to the end user.  The facilities included in our network provide storage and distribution services for general and bulk goods, hazardous & pharmaceutical products, items subject to Duty and VAT deferment as well as general self-storage units.

Our members can offer a complete commercial storage and logistics solution including distribution and forwarding, RH&D, order picking, stock control, re-working & re-kitting, EDI (Electronic Data Interchange) and PDI (Pre-delivery inspection).  Some have available outside space for vehicle parking or external storage requirements and many warehouses have dock levelers, temperature control facilities, operate forklifts and most warehouse facilities are fully secure with CCTV and alarm systems.

If you need to find storage space or a 3PL provider please click on the FIND SPACE button on our welcome page and use the map to search for current available solutions or for assistance in any way, please contact Whichwarehouse:

Address: 19 Tudor Court, Wootton, Northampton, Northamptonshire, NN4 6FF

Tel: 0800 1707 555

Website: https://www.whichwarehouse.com/

Email: [email protected]

All of us at Whichwarehouse wish all of you …

A Very Happy Christmas and a Prosperous New Year

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