In the absence of a reliable crystal ball, businesses all over the UK are facing a great deal of uncertainty as a result of Brexit. Businesses are understandably nervous about the impact of this on the cost of imports and exports (already worsened by the weakened pound), and the future availability of stock.
It’s perhaps unsurprising that some UK businesses have been building up reserves of their stock
in anticipation that the parts, equipment and ingredients that they need to make their business work may become more expensive or scarce in a No Deal Brexit.
Who may be affected?
Businesses of all sizes, from SMEs to multinational conglomerates, are preparing for the eventuality of a No Deal Brexit. It’s the nature of the businesses that determines their likelihood to stockpile rather than their size or structure.
Several large companies have been building up supplies or products for several months now, to reduce the threat of disruption to their sales. The main industries that seem to have engaged in creating a buffer of supplies include manufacturing, pharmaceuticals, and food and beverage retail. But any business that relies on international trade may be considering stockpiling if they have not already begun to do so.
It’s not just businesses that import from Europe, either — companies that rely on importing stock or parts from further afield are worried that the items they order will get stuck at the ports if border checks cause delays. To support the continuity of their business during these uncertain times, many of those companies are buying extra supplies or creating extra products to store for later use.
Should you build up your products and supplies?
The current date for Brexit is 31st October 2019. Many businesses that anticipate greater sales in the run-up to Christmas might ordinarily be increasing their purchases and production rates anyway, to ensure that they have enough to supply the increased demand at that time of year. The possibility of the UK leaving without a deal has made a lot of businesses increase their stock levels further still.
Stockpiling may help to ensure that your business has a continued source of parts and materials that you need to meet consumer demand until (hopefully) things settle down again and mutually-beneficial agreements can be put in place. If you have a reliable source of stock, bought at a set (not fluctuating) price, you can price your goods accordingly without having to worry that your bottom line will be affected by any unexpected hikes in the price of your supplies.
To decide whether your business should buy extra supplies now to create a buffer against later disruption, try comparing the cost of storing your supplies and products against the cost to your business if supplies were interrupted for a week, a month, a year or more.
Practicalities of storing extra stock
Huge multinationals have been able to store more supplies and products in-house because they have the warehouse space to do so, but there has been a huge increase in demand for secure self-storage units (particularly from SMEs).
- you don’t have sufficient space in your business in which to store extra supplies/products/ingredients, but
- you rely on any supplies from the EU or further afield, and
- you are concerned that those supplies will be interrupted, delayed or made more expensive by a No Deal situation. You may be considering self-storage to help you to ensure that your business can carry on uninterrupted throughout the changes that may be ahead.
Renting a storage unit of any size (from 10 sq ft lockers to 500 sq ft+ warehouses) will ensure that your stock will be kept clean and secure, and you can access it at any time.
Why choose Safestore?
Nationally, warehouse space is becoming scarce as more businesses look for space in which to store excess stock. We still have units available in nearly 120 stores across the UK, all within easy reach of major road networks. For a low, weekly rent, you can keep a unit with us for just 7 days or for as long as you need, with no long tie-in periods. Nobody knows how long the current levels of uncertainty will last, but you can keep your Safestore unit for as long as is necessary.
At Safestore, you can increase or decrease the size of your unit if you find you need to stockpile more over time, or if your stock depletes and you no longer need as much space. You’ll never need to pay for more space than you need.
Our units are indoors, the buildings are monitored by CCTV and staffed by our helpful staff. Many of our stores have 24-hour access available and dedicated business units, and many have trolleys and forklift truck services to help you to load and unload your stock.
To find your nearest store
or enquire about how much space you might need for what you intend to store, our helpful team are on hand in-store, online or on the phone today.