With the UK set to leave the EU and no universally accepted deal in sight, confusion permeates the warehouse and manufacturing sectors. Nevertheless, business owners must seek solutions to facilitate a smoother transition despite uncertainty about the terms of the Brexit deal and the future relationship with the EU.
Meanwhile, UK businesses are seeking flexible storage space. These “build to suit” solutions help companies plan effectively for future changes. They need adaptable storage that allows them to make necessary adjustments when demands change after Brexit.
Temporary Storage Demands
The ongoing negotiations have increased requests for temporary and smaller storage shelters. Storage constructors observe a shift in rental preferences, with companies opting for shorter leases lasting between 1 to 5 years.
Companies are planning ahead to maintain a stable production flow that meets customer needs amid uncertainty. By investing in custom-built storage facilities, they create alternatives to traditional storage options.
Many of these structures are fabric-based and not permanent but provide suitable conditions for storing goods. Their adaptability allows businesses to respond quickly to market changes while minimizing costs in the short term.
Preparing for Brexit
Another strategy manufacturers in the UK are considering is stockpiling. Companies relying on imported raw materials seek to avoid dramatic shortages that could disrupt production. Aston Martin recently announced it will raise stockpiles of car components from three days’ supply to five as a precaution in case no deal is reached.
Bentley has also stated plans to increase stockpiles, while Airbus has voiced concerns and started storing more aeroplane components. However, many small-to-medium-sized firms hesitate to pursue stockpiling due to financial risks.
This may change as Brexit approaches without a deal. Stockpiling necessitates cash flow and more storage space. With e-commerce demands rising, the need for cost-effective third-party logistics (3PL) storage solutions increases.
Regardless of size, businesses must strike a balance between flexibility and reliability during Brexit. Whether constructing custom storage or maximizing existing warehouse space, companies must adapt quickly to keep up with the evolving logistics landscape.