Episode 4: The UK is buying more online than it can store and deliver – can we build enough warehousing to contain this growth?

The Compliance Experts Podcast

During the last twelve months both Brexit and the global pandemic have driven and amplified the core changes in the UK logistical marketplace. In particular, the massive acceleration of e-commerce and home delivery. As Savills notes in the 2021 UKWA report, research from Prologis indicates that for every extra £1bn spent online, a further 775,000sq ft of warehouse space is needed to meet the new demand.

This change in shopping habits looks set to stay, and as retailers move from high street premises to online channels to serve consumer demand for home delivery, more fulfilment and distribution facilities will be needed to support the ‘new normal’.

Research from Forrester states that by 2025 online retail will account for 35% of all retail, which means that at least 64 million sq. ft of additional warehouse space will be needed for this sector, let alone traditional warehousing needs.

Warehouses are getting bigger, this means that sites capable of housing large scale warehouse space will need to be built much more quickly than historical trends suggest. Are we ready for this? Can we do it?

Miles talks to Carl Day, (Anchor Freight) about this escalating problem for warehousers and haulage firms and they take a look at innovative plans around the rising demand for storage. What is the solution? What do we need to do NOW to meet this challenge?

Miles and Carl talk about customs warehousing, inland warehousing and the plans currently in place to build these super warehouse spaces. They discuss the roll of the planning authorities, the benefits of cooperative haulage and the importance of protecting our environment by reducing our carbon footprint whilst questioning whether we’re building futureproof warehousing?

If you have any thoughts or opinions on this topic Miles would love to hear from you and discuss some of your points in a later episode.

Visit www.vartanconsultancy.com or email Miles on [e-mail] or call VARTAN on 01394 671756. Catch up on Vartan’s socials LinkedIn Twitter

Guest: Carl Day – Anchor Freight (Ipswich, Suffolk)