When the Brexit transition period ends at midnight on 31st December 2020, the UK will no longer be a part of the European Union Single Market and the Customs Union. Therefore, many businesses and retailers have been stockpiling goods ahead of the big breakaway in January.
Businesses and retailers have been stockpiling goods in preparation of trade barriers and potentially high importation fees. Businesses are choosing warehouse storage solutions to store a wide variety of goods ranging from food produce to clothing in a bid to make sure that stocks do not run low once we leave the EU.
As over 40% of the UK’s food and drink is obtained from overseas, this means that reserving and storing goods in warehouses is an attractive solution for many retailers and businesses.
Stockpiling is the most obvious option to manage short-term supply chain issues and disruption. Stockpiling also prevents any stock shortages should relations between traders become difficult and ports and borders becoming congested within the European Union post-Brexit. But stockpiling is not suitable for all goods especially perishable or short shelf life products. Cold storage and frozen food supply chains have been worst affected as space for these are in shorter supply.
But this looming Brexit deadline is highlighting the lack of storage capacity within the UK and businesses and retailers are now struggling to find available warehouse storage space. Up to 75% of UK warehouse owners are saying their warehouse storage space is already full to capacity and this is becoming a huge problem. Stockpiling is also driving up the cost of available space in UK factories and warehouses.
Western Industrial Business Interiors (A leading supplier in the UK of Storage mezzanines and warehouse and storage equipment) have noticed a huge up turn by 25% in Brexit related enquiries.
Finding additional warehouse storage space is therefore becoming very challenging. Warehouse and storage companies should do their best to prepare for January 2021 by freeing up warehouse space, or even implementing additional refrigeration for cold and frozen goods. Businesses may want to consider maximising storage space within their existing premises or consider expanding.