Disruption is the new normal

WHILE THE economic outlook seems to be improving, the UK continues to face uncertainty. At the recent UKWA conference, a key economist outlined some positive news.

Dr Walter Boettcher, head of research & economics at Colliers International, says: “Things are a bit better than we thought, with the economy declining less than expected, and the second half of the year is now expected to grow more than was anticipated at the end of last year.

“There is the falling wealth effect, but inflation is likely to have peaked in December and we expect energy prices to come down, so even if they are steady this year, it will be low compared to last year, due to supply side response, greater energy efficiency etc. This could push inflation down, perhaps to 3-4% by the end of the year.”

This is promising, but the outlook for 2023 is still difficult and high interest rates will make it harder for developers to raise cash to fund new warehouse developments. Thus, when projects currently in the pipeline run out, we could face a shortage, at a time when the UK is already historically short of fit-for-purpose warehousing. 

This is arguably where temporary structures come in.

CopriSystems managing director Rate Colenso explains: “Disruption is the new normal. The supply chain has moved from just-in-time to just-in-case, and this has driven the trend for on-demand warehousing.”

Quick installation time alone is therefore a draw for businesses that need to respond fast to fluctuating demand without having to commit to a fixed location but this should not mean that you have to sacrifice on strength or durability. 

Rafe explains: “Our canopies can typically be designed, installed, fully functional and operational within eight weeks of ordering. They are manufactured off-site to avoid any disruption and once delivered, a small or medium-sized canopy can be erected on an existing concrete base in a matter of days.

“Our structures are built using strong, corrosion-free, galvanised steel frames that are engineered to last and covered with a heavy-duty, flame retardant PVC-coated polyester fabric, which offers complete protection from arduous marine conditions as well as heavy wind and snow loadings. A 10-year guarantee comes as standard, although many are still going strong after 20 years.”

Cost

The cost savings are obviously significant compared to conventional bricks and mortar and providers can offer rental and flexible payment options to help spread the cost.

Rafe continues: “We offer finance options so you don’t need the capital upfront. For businesses looking to build resilience and flexibility into their plans, a prefabricated warehouse could be the best tactical solution for now. It is a more affordable and viable alternative to a rigid, constrained property market and one that’s proven to be effective no matter what circumstances threaten to destabilise our supply chains.”

As well as the trend for on-demand warehousing, CopriSystems has noted a shift away from consolidation and dependence on one big warehouse, further leading to demand for its quick-build, re-locatable structures.

Micro-fulfilment, or micro warehousing, is also increasingly an option for many online retailers. They are seeking cost-effective premises so they can compete with larger players and gain strategic locations close to the consumer.

Rafe explains: “Opting for a fabric-covered canopy is an ideal purpose-built solution as they can be installed quickly, so you waste no time in responding to consumer behaviours. They’re versatile, flexible, can be expanded easily as a business grows or if you are prone to seasonal peaks, they are fully relocatable.”

Agile

The Chain Reaction report – commissioned by Barclays Corporate Banking – makes for sobering reading. Its key finding was that 72% of businesses are holding unfinished items in warehouses, while they await the delivery of raw materials or components.

In response to this, 39% of businesses surveyed said they were increasing their storage capacity.

Thorworld managing director John Meale says: “This is going to increase competition for warehousing premises, and means that many businesses will need to be more agile in what they class as a ‘warehouse’. This means, potentially, using premises that don’t have a dedicated loading bay.

“The use of modular docks and yardramps offer a solution in this eventuality. These are proactive, pragmatic and relatively inexpensive solutions to help businesses scale up their warehousing, while having the loading and unloading infrastructure to keep goods moving.”

Lease

With traditional bricks and mortar, a five-year lease is not long but many businesses don’t have the money to commit to those timescales or the certainty that they can fix themselves to one specific location. It’s often inconvenient to move and can take significant time to find the ideal conventional premises.  

“This is where our expertise in creating bespoke solutions really comes into its own,” says CopriSystems managing director Rafe Colenso. “Our structures are carefully and individually designed to lead a dynamic life. We understand there is no one-size-fits-all model, so we work with each business to establish how best we can optimise the space they have, to ensure we come up with a design solution that will integrate with existing buildings, systems and daily operations.”

The structures created by CopriSystems can be modular to enable an expansion or reduction. They are also lightweight and easy to remove or relocate to new premises. Domes have no internal supports so they offer more usable space and the roofs can be telescopic to allow for easy loading and unloading of goods by crane. If a business needs a covered area for goods marshalling but only has a very small yard, which must remain accessible to vehicles, a canopy that can retract when not in use is an option, as it takes up very little space and causes minimal disruption.

Rafe concludes: “It may be that a relocation to a new conventional warehouse is in the growth plans but, right now, a custom-made temporary structure could be just the right solution to allow for some breathing space while the next move is considered.”