The UK Warehousing Association is predicting a “perfect storm” for the logistics and warehousing sector in 2019 due to rising demand and a lack of suitable warehouse space, particularly in populated areas and around key UK ports.
As the year progresses, changing rules on imports, particularly of food, may also see inspection facilities needed – and these may be positioned further inland in order to keep vital logistics routes clear around ports like Dover.
Following a survey of its members in December 2018, UKWA CEO Peter Ward said: “We are facing a perfect storm in the warehousing and logistics industry with little speculative build in the pipeline; urban development land earmarked for residential, but not for the warehousing required to fulfil rising consumer demand; and a severe labour and skills shortage.”
In the last quarter of 2018 UKWA saw 90% of visits to its website come from new visitors, most of whom were searching for warehouse space.
Its survey found 60% of members have turned away business enquiries because they were too large; 70% have expanded space to accommodate new customers; and 75% are now full to capacity.
Despite this, there is substantial demand for large storage spaces, especially over the short term. Around 85% of members had received short-term enquiries for periods of 3-6 months; 80% had received enquiries over 1,000 pallets; and 50% had received enquiries over 5,000 pallets.
At McLennan we work with some of the biggest names in British logistics to meet their needs for warehousing and distribution centres, and will of course continue to work to deliver good quality warehouses in time and on budget throughout 2019 and beyond.
We provide a full range of electrical installation and maintenance services via our experienced warehouse electricians, along with mechanical services and fit-out of modern technologies such as LED light installation to help save on energy consumption, carbon footprint and operating costs.
McLennan work on new-build warehouse fit-out and also on warehouse refurbishment, and we expect many of the enquiries we receive in the coming months will involve refitting existing warehouse space to bring it up to the standard required, or to make it suitable for a specific sector such as food or medicines.
Our service team is available to discuss your project or to share details of our past experience on similar contracts – you can call McLennan on 01925 766 044 to find out more.