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The UK is facing a chronic shortage of warehouse capacity as years of under-development and growing demand, especially from e-commerce specialists, conspire to leave operators fighting for available space.
This will likely lead to considerably higher rents, according to Kevin Mofid, director of logistics research at Savils.
He told delegates at this week’s Multimodal event in Birmingham that, of the 420 million square feet of warehouse space in the UK, there was “very little on the market, and what there is, is going to see its ...
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Ross Delaney
May 12, 2016 at 12:15 am“The UK is facing a chronic shortage of warehouse capacity”
Or in other words, as we say at Gilead:
E-Commerce fulfillment growth is reducing velocity in the supply chain.
The velocity for getting in and out of a warehouse is of secondary importance to the emergence of trend showing an overall build of inventory volumes in warehouses overall.
The consequences of failing to take the opportunity to move the transport vs warehouse paradigm are costs are already plainly visible in E-merchant’s past earnings trajectories, but they are not reflected in their share prices which are being determined by what supply chain markers are showing as unrealistic views in respect of probable forward earnings.