Is Brexit Stockpiling on the Cards This Year?
As 31st December comes closer and closer, a sense of panic is finding place not just in the hearts of manufacturers and businesses, but also ordinary people. Everyone on the digital streets is talking about one thing; Brexit.
One major impact that Brexit had on the people of the UK was that they started stockpiling food and supplies. Some even started selling the same food at inflated rates, such as Emergency Food Storage, UK. But Brexit hoarders weren’t the end of it. Then came the coronavirus pandemic, where people who stockpiled food and supplies saw a boom in business.
Manufacturers are doing the same as they get ready for the uncertain taxes and potential border constraints.
This raises the question. Is Brexit stockpiling on the cards this year?
UK Manufacturers are Stockpiling Inventory as they prepare for Brexit.
Food, medical equipment and electronic components; these three industries are the ones that are seeing increased demand. However, that hasn’t stopped UK manufacturers from over-manufacturing and storing the excess inventory in warehouses.
Most warehouses don’t have enough space to accept more goods, and it’s not just the manufacturers. Customers panic-bought electronics from UK suppliers and stored them. The main reason being the prediction of electronics prices increasing as borders close.
Supermarkets such as Tesco and even Marks and Spencer also moved toward signing contracts with external warehouses, complete rentals and on-demand to help stockpile tinned food.
In its own warehouses, Tesco rented refrigeration units for emergency food supply needs to ensure supply remained constant. Although prices went up, the goal toward mitigation of shortage and chaos in the case of a poorly managed Brexit seems to be accomplishable because of that.
Marks & Spencer, on the other hand, focused on stockpiling non-perishables.
Pharmaceutical giants are also partaking in the stockpiling venture as they secure more and more smart warehousing solutions in the UK for excess medicines and vaccines; especially those that must be stored in controlled environments. Since they have to be ready for coronavirus vaccines, there is a large area that these giants have conserved for the new vaccine that is yet to be utilised.
And lastly, car manufacturers are also taking part in the action as one the biggest manufacturers in UK, BMW scrambles for warehouses that can help it store components.
Government Sectors are Stockpiling Inventory for Brexit
Private manufacturers aside, even government sectors are stockpiling inventory this year, a prime example being the Department of Health. When Brexit talks were at an all-time high, it signed two contracts with on-demand warehouses to store drugs and food in case of a no-deal Brexit.
This was exacerbated because of the coronavirus and governments started seeking out more warehouses for storage and quicker deliveries throughout the UK. The government had warned locals already that fresh food could be in short supply, especially in case there was a ‘no deal’.
Recent surveys suggest that most warehouses are filled to the brim with stockpiled equipment, medicine and food, filling up a whopping 75%-85% storage space in all of UK. And that is saying something; members of the UK Warehousing Association have over 9.3 million m2 of space to their name, and it is filling up quite fast.
How we can help.
We have over 2000 warehouses in our online marketplace with in excess of 50 million sq ft of storage spaces on demand. In conjunction to our or demand storage space we offer full end to end fulfilments services to compliment your storage requirements.
If you’re looking to stockpile your equipment, food or inventory, get in touch with us today and we will arrange warehouse storage & fulfilment services for you.