Despite suffering the effects of the recession the warehousing and storage business has utilised the opportunity for change, adapted appropriately and positioned itself for success. Here are 6 reasons why this industry has achieved significant growth with promising forecast ahead.
1. The warehousing and storage business is a thriving and growing industry. In the last five years it has experienced growth of 2.7% and an annual turnover of thirteen billion pounds. The industry is projected to rise a further 2.1% in the next five years and set to reach 14.3 billion by 2019-2020. This growth is creating exciting opportunities for the growth, expansion, development and success of the sectors businesses.
2. The strengthening of international trade in the form of merchandise imports and exports will continue to boost the countries economy. With freight task also set to trend upwards as trade becomes more globalised, the volume of goods in transit will increase, contributing to industry growth and resulting in a higher demand for warehousing and storage facilities.
3. Economic acceleration means manufacturing output and retail sales are poised for growth. With the online shopping trend set to increase, their success depends on well stocked warehouses ready to fulfil their customers orders. With between 10 and 30% of all online purchases being returned there will also be an opportunity presented to those that are positioned to deal with the repackaging, reprocessing and the resending of returned stock.
4. Investment into new technologies has transformed warehouses that offered mere storage bays in the middle of nowhere into highly automated processing centres with excellent transport links. By Integrating services such as pre sale preparation, labelling and quality control of goods, companies have added valuable chain support services. Alongside these integrated services technological advances such as Cost control, improved client interfacing, barcode readers, radio frequency identification (RFID), automated tracking systems and voice-activated picking systems have also been made. Such technologies have significantly boosted efficiencies and cut costs, making the projected future of this industry brighter still.
5. Integrated and reverse logistics such as waste management, reusable packaging and customer returns provides further opportunities to additional services and lowers the environmental impact of the industry. Alongside fulfilling EU standards on recycling and packaging reverse logistics will satisfy and encourage customers who are becoming increasingly environmentally aware and are taking the carbon footprint and environmental ethos of businesses into consideration when choosing their service providers.
6. Warehouses have adapted significantly to accommodate change and growth. Warehousing and storage facilities have become an art form. Instead of incurring the cost of downtime and relocation businesses have enlisted the help of ‘storage experts’ to transform their existing warehouse space. Innovative storage solutions and bespoke design will maximise existing storage and warehousing operations enabling companies to advance and develop their businesses in a cost and time effective way.
Commentary provided by Warehouse Systems Ltd http://www.warehouse-systems.co.uk/
