Brexit-related stockpiling is driving up the cost of space available at food and beverage production sites, factories, and warehouses across the UK – as businesses guard against the prospect of a no-deal outcome. Leading solutions provider, Dawsongroup TCS, is urging the industry to take action now and look to “usership” rather than “ownership” to meet demand and prepare for change.
Rod Benham, Managing Director of Dawsongroup TCS, said: “Significant political uncertainty means producers and food and drink retailers face even more ambiguity, despite the clock continuing to tick ahead of the UK’s scheduled departure from the European Union.
“When it comes to precautionary stockpiling, a lack of space, the need to meet demand quickly, and uncertainty around the long-term business requirements, are posing large and problematic constraints on the food and beverage industry.”
This challenge becomes a larger issue in the context of information released by the Food and Drink Federation which states that temperature-controlled warehouses are in desperately short supply in the UK, meaning it may not even be possible for businesses to find the space required. Furthermore, it may not be suitable for businesses to invest in building concrete, permanent extensions due to invariable market confidence and uncertainty.
Rod continues: “Rental is the way forward for key players in the food and drink industry if they want to be ready for any Brexit-related market changes without the need for capital funding – and there are plenty of options to consider. Portable coldstores come without any feasibility costs and if space is an issue, tailored buildings can also be specifically designed. Inflatable coldstores can be transported on a single pallet and installed in just 90 minutes, minimising disruption to businesses. They can also be sited on almost any hard-standing surface and are rigid enough to withstand extreme weather.”
Most importantly, rental can allow a solution to be supplied in weeks, as opposed to months, or even years. This is great if, for example, a business has secured a new contract or does need to stockpile, meaning a quick factory extension is necessary in order to meet rising production demands.
For more information contact Dawsongroup TCS on 01623 516666 or send the team a message via its website.