Lack of Warehousing Could Hamper UK Economic Recovery

By Admin
With an ever-increasing Europe-wide network of own operated distribution hubs, Rhenus is actively seeking centrally located warehousing facilities over...

With an ever-increasing Europe-wide network of own operated distribution hubs, Rhenus is actively seeking centrally located warehousing facilities over 100,000 sq ft, and has found very few locations available in the current market. Such a severe shortage in operational distribution centres may well prevent foreign businesses from establishing a presence in the UK, forcing them to establish job-creating logistics hubs elsewhere.

David Williams, managing director of Rhenus UK, said: "We are currently searching for a major warehouse location for a well-known European brand, but have found only one potentially suitable location within the whole Midlands region.

"Granted, there are several design and build options on the table, but these solutions would take at least 18 months to develop to an operational level. Most of our customers are looking for fully operational facilities within a maximum six month timeframe and this paucity of warehousing could significantly hamper growth."

While there is no immediate solution to this short-term challenge, Williams is concerned that developers have the most appropriate access to finance that enables them to build warehousing prospectively. "Clearly, we can't magic 150,000 square foot warehouses out of thin air, so we need to build suitable stock as soon as possible.

However, without the right access to affordable finance, developers simply won't take the risk. It would therefore be sensible to see investors and developers working together more closely to ensure vital warehouse stock is constructed as soon as possible."

Share

Featured Articles

EY: GenAI in supply chain 'hampered by roadblocks'

EY Principal of Supply Chain & Operations Sumit Dutta says GenAI use cases show promise but that adoption is hampered by skills shortage and legacy

Sustainability LIVE Net Zero to Focus on Scope 3 Insights

Sustainability LIVE Net Zero event being held in London from March 6-7 offers insight, advice and discussions around supply chain sustainability

SAP: US, UK & India elections 'will impact supply chain'

SAP Business Network SVP Tony Harris warns business leaders to prepare for more supply chain disruption following key elections in US, UK and India

Appian & Xebia to share AI-driven S&OP Insights

Technology

COMING SOON: Top 100 Women in Supply Chain 2024

Sustainability

Supply Chain Optimisation 'Stymied by Data Silos'

Digital Supply Chain