Many businesses have reacted to the coronavirus pandemic and Brexit by stockpiling goods and increasing their inventory levels. This has resulted in a large increase in demand for extra warehouse space.
Fiona Briggs, writing for the Retail Times, said:
“The UK’s exit from the European Union Single Market and Customs Union in January 2021 and emergence from the Coronavirus crisis is reshaping business strategy.”
Prior to Brexit and the pandemic, there was a trend for supply chains with low inventory levels. This trend is being overturned, with many businesses increasing their stock levels.
There has also been a large increase in online retail sales, with warehouses needing extra capacity to store extended product lines.
According to the UK Warehousing Association, spare warehouse capacity is at just 3%, with 75% of its members reporting that their warehouses are full.
It is a challenge to find extra warehouse storage space. Frozen food and supplies that need to be kept cold have been in short supply due to the lack of cold storage facilities.
Brexit and Covid-19 are expected to continue to impact supply chains, and more goods will be stockpiled. This will mean that the demand for extra warehouse space will increase.
If businesses cannot find new warehouses to buy or lease, the alternative is to maximise existing warehouse space, reorganising shelving or constructing mezzanine floors if space allows. Working with a warehouse equipment supplier, warehouse owners can extend shelving vertically and reduce aisle widths to fit more shelving units, allowing more stock to be stored.
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Storing goods safely and effectively is critical for operations like warehouses. From products that have a quick turnaround to slow sellers and overstocked items, it is essential that inventory is