Brexit stockpiling: Should I rent or buy additional storage?
Brexit-related stockpiling is driving up the cost of space available in UK production facilities, factories, and warehouses – as businesses guard against the prospect of a no-deal outcome, which threatens to cause trade chaos and disrupt supplies.
Significant political uncertainty, such as the delay of the crucial parliamentary vote on Brexit, means companies now face even more ambiguity, despite the clock continuing to tick ahead of the UK’s scheduled departure from the European Union on 29 March.
But when it comes to precautionary stockpiling, a lack of space, the need to meet demand quickly and uncertainty around the long-term requirements are some of the biggest constraints that can hinder a business’ preparations.
Our own storage capacity and warehouses are filling up. What other options are available?
According to the Food and Drink Federation, temperature-controlled warehouses are in desperately short supply in the UK so it may not be possible for businesses to find the space required.
However, it may also not be suitable for businesses to invest in building concrete, permanent extensions due to invariable market confidence and uncertainty. With the lack of predictability, rental offers businesses long-term solutions without a large upfront cost.
Renting units – such as the Dawsongroup portable coldstore – comes without any feasibility costs associated with building or the issues of using external storage regarding RHD costs, transport to and from the location, plus loss of control of the stock.
Standard units cover a temperature range of -30C to +55C, although build bespoke solutions from -60C to +85C can be built. If space is an issue, tailored buildings can also be specifically designed to meet your company’s operational demands.
The benefits of renting
Most importantly, rental can allow a solution to be supplied in weeks, as opposed to months, or even years. This is great if, for example, a business has secured a new contract, meaning a quick factory extension is necessary in order to meet rising production demands.
Not only this but if something goes wrong on an asset you own, upgrading or replacing the equipment is likely to come at an extra cost. However, depending on the company you’re renting from, the rental package is likely to include up or downgrading, servicing and maintaining your unit.
At the Dawsongroup, this includes benefits such as a service every six months, 24-hour breakdown support 365 days a year, and a three-year refurbishment plan. As there are also no associated feasibility costs, in particular consultancy and architect fees, there is no payment to be made if you decide not to proceed with a proposal received.
Another benefit of rental is if your business requires more or less space at a later date, modules can be added or removed to suit changing business requirements.
I need even more flexibility. What are my options?
For ultimate flexibility, our expertly engineered inflatable coldstores can be transported on a single pallet and installed in just 90 minutes, minimising disruption to businesses. They can also be sited on almost any hard-standing surface and are rigid enough to withstand extreme weather.
What if I want to buy the units I need in the future?
If you decide you would like a more permanent solution, such as owning the asset in the future, Dawsongroup can offer purchase options – including finance – on all units.
For more information on how we can help your business, contact us on 01623 516666 or send us a message.