'Chronic lack of warehousing could hamper UK economic recovery'

Will Green is news editor of Supply Management
24 May 2014

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25 May 2014 | Will Green

A logistics firm has warned a “chronic lack” of large-scale warehousing in the UK could hamper economic recovery.

David Williams, director of Rhenus Logistics, said his firm was struggling to find facilities over 100,000 sq ft and such a “severe shortage” could prevent foreign businesses establishing in the UK.

“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,” he said.

“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 time frame and this paucity of warehousing could significantly hamper growth.”

Williams said he was concerned about developers having access to the necessary finance to build new warehousing.

“Clearly, we can’t magic 150,000 sq ft warehouses out of thin air, so we need to build suitable stock as soon as possible,” he said.

“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.”   


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