Research by the UK organisation Make UK has found that almost three quarters of UK manufacturers have reshored their supply chains as a result of the disruption caused by the Covid pandemic and more recently the war in Ukraine.
“Nearly half (42%) of manufacturers have increased the proportion of suppliers based in Great Britain, with further reshoring in the pipeline for over two-fifths of companies,” according to their report.
This, together with the change in consumer purchasing habits moving to more online shopping has dramatically increased the demand for warehouse space.
According to latest research by Colliers, industrial occupiers are in a race for space as the UK is experiencing the lowest level of supply ever recorded, with only 18.1 million sq ft left, due to demand for logistics units continuing to be driven by the structural change in consumer spending patterns.
Colliers states that take-up in 2021 for industrial distribution warehouses of 100,000 sq ft+ reached 50.7 million sq ft, up 3.6 per cent year-on-year, a new record for the sector.
The Make UK research also found that “manufacturers are looking to increase or maintain their current investment into supply chain technologies over the next two years.”
Despite the almost-daily dire news on costs, recruitment, raw materials prices and so on it is clear that there are opportunities in adversity for some businesses.
Perhaps an existing business could pivot to meet these needs and at the same time strengthen its own future for growth?
Give us a call or message if you would like to talk to someone about restructuring possibilities for and investment in your business.