Customs delays caused by no-deal Brexit could spark a race for warehousing space, warns Midland Pallet Trucks

Customs delays caused by no-deal Brexit could spark a race for warehousing space, warns Midland Pallet Trucks

As the UK still languishes in a transition period after leaving the EU, concerns are emerging that the race for warehousing space could spike as many manufactures begin to stockpile products due to customs delays.

Midland Pallet Trucks, which specialises in lifting and material handling equipment for the warehousing, factory, retail and manufacturing industries including pallet trucks, manual stacker trucks and lift tables, expects stockpiling to begin imminently. The West Midlands firm predicts a notable increase in stockpiling goods from overseas before the Brexit deadline at the end of 2020.

This will place a further strain on an industry that has struggled to cope with the demands of both retailers and online shoppers during the ongoing COVID-19 pandemic, with many of the UK’s warehousing spaces already at full capacity.

One such company to start stockpiling essential parts is luxury car manufacturer Bentley which currently imports around 45 percent of components from continental Europe. Fears that these components will be delayed at customs due to a no-deal Brexit and stop manufacturing are said to have driven the Crewe-based manufacturer to spend millions stockpiling essential products from overseas suppliers due to the lack of a trade deal.

With the deadline fast approaching and the COVID-19 situation making matters worse for both UK and European businesses, it is anticipated that many will be seeking additional warehousing space over the next few months in order to offset price increases, import tariffs and expected customs delays.

With the UK warehousing industry still struggling to attract and retain skilled workers to cope with heightened demand, many industry members are also concerned about the health and safety implications that the additional strain that Brexit related customs delays will cause.

Compounding the space issue is the fact that the warehousing sector is facing a talent shortage, with not enough experienced operatives to deal with heightened demand.

Phil Chesworth, Managing Director of Midland Pallet Trucks said, “With Brexit still continuing to play a central role in the already overwhelmed warehousing sector and the continuing COVID-19 pandemic, we expect to see warehouses and their employees stretched like never before. It’s a unique set of challenges but underlines just how vital our warehousing spaces and the overall industry is to the day-to-day operations of the entire country. We expect space to be at a premium within the next few months, with that demand growing the closer we get to the deadline. For many organisations, stockpiling is a business continuity issue as there is no clarity as yet what delays we can expect to see in the aftermath of transitioning out of the EU.”

Midland Pallet Truck products are vital to the safe operation of any busy warehousing, factory or logistics operation and can streamline the process of the entire shipping and delivery process.

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