Brexit and environmental regulations challenge warehouse owners

In 2020 warehouse owners are faced with two main challenges: stricter environmental legislation and Brexit.

The year 2019 was a time of uncertainty for many warehouse owners. The main issue was Brexit, which meant that many businesses needed additional storage space to stockpile goods and bought more warehouse equipment. This was good for the warehouse equipment manufacturer, but some businesses have delayed expansion plans until Brexit is finalised.

If Britain withdraws from the European Union without a trade agreement, extra border checks will probably be implemented for exporting or importing goods. According to the CEO of the Warehousing Association (UKWA), Peter Ward, interruptions to the supply chain will:

“naturally lead companies to hold more inventory in their supply chain and, therefore, more warehouse capacity will be required.”

Another issue is stricter environmental legislation to reduce carbon emissions. This will require the use of more electric vehicles in warehouses. Many warehouses rely on manual handling with warehouse trolleys used to pick items from shelves. Equipment without engines are not subject to this environmental legislation, but warehouses may need to switch to electric forklifts.

There is a growth in urban warehouses operating 24 hours a day, seven days a week. These enable eCommerce companies to deliver goods to major population centres in very fast times. These warehouses are often located near residential areas, so air pollution and noise is an issue. It is expected that delivery companies will adopt quieter and less polluting electric vehicles for the delivery of goods to and from warehouses.

Posted by Mark
6th January 2020
Retail & Warehousing

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