Rising Warehouse Demand Fuelled by Stockpiling

Demand for warehouse space has recently hit an all-time high, however, this surge in demand has not come from the boom in online retail but is instead being driven by stockpiling, as Midland Pallet Trucks has witnessed.

According to real estate service firm, CBRE, online retail was only responsible for 13.6% of warehouse space occupied in the first half of 2022, which is a steep decline from the 42% of space it occupied in the first six months of 2021. This decrease is largely due to the rise in third-party logistics companies who are buying up space to stockpile goods for retailers and manufacturers who want to buy themselves more security in the harsh logistics landscape.

Due to ongoing supply disruptions and logistics pressures, many retailers no longer want to take the risk of buying stock and materials as and when they need them. Instead, more and more companies are choosing to stockpile items, ready for when they choose to use them in the future. This change in approach to sourcing products and materials is helping to continually fuel the warehousing boom, even as the demand from e-commerce begins to die down.

This new trend is something that Midland Bearings, a leading company in the logistics industry that’s responsible for shipping high-quality hand pallet trucks, lift tables, and manual stacker trucks across the UK. As experts in the field, they suggest that this strategy may be useful for companies who are trying to stay afloat in times of significant supply chain upheaval.

Phil Chesworth, Managing Director of Midland Bearings says, “The past few years have been a nightmare for the logistics industry so many companies have started to adapt their strategy – mainly through stockpiling their items to counteract potential delays and supply chain bottlenecks. This is only heightening the pressure felt by warehouse managers across the country but, we hope that with the use of our equipment and effective inventory management skills, many warehouses will be able to weather the current storm.”

 

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