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Warehousing & Storage Industry

The warehousing and storage industry in the UK encompasses the operation of storage facilities for a wide range of goods, including grain silos, storage tanks, general merchandise, and refrigerated warehouses. This segment has seen steady growth, with revenue increasing at a compound annual rate of 2.6% to £29.5 billion from 2017 to 2023.

£27B

Market Size

9,565

Number of Businesses

233,972

Industry Employment

The warehousing and storage segment consists of businesses operating storage facilities for all kinds of goods, including grain silos, storage tanks, general merchandise, and refrigerated warehouses. The industry also stores goods in foreign trade zones, furniture repositories and freezers.

Industry Challenges

Brexit and post-Brexit bureaucracy
The E-commerce and online retailing industry will add complexities to traditional warehousing services
A short supply of high-quality and inexpensive warehouse space pushes up prices
Recruitment

(Ibis World, 2023)

The industry has grown over much of the five years since 2017- through 2022-23, with revenue projected to grow at a compound annual rate of 2.6% to £29.5 billion. The industry’s revenue is expected to expand in 2023-24, supported by greater demand for e-commerce, with a forecast 8.2% climb in revenue over 2023-24. In addition, over the five years through 2023-28, the UK warehousing and storage industry is expected to expand, while the average profit margin is forecast to inch upwards.

Industry Opportunities

Just In Time (JIT) inventory and Automation Systems
Plans for services diversification and operations restructure
Focus on expansion or organic business growth
Exploration of overseas markets

(Ibis World, 2023; OakNorth Bank, 2023; Factory & Handling Solutions, 2022)