Warehouse shortage is set to drive up costs

By Noli Dinkovski contact

- Last updated on GMT

Lancaster Coldstore: a new addition
Lancaster Coldstore: a new addition

Related tags: Third-party logistics provider, Supply chain management

A leading third-party logistics provider has warned that a lack of available existing warehouse space in the UK is likely to “push prices up” throughout the supply chain.

Stuart Hancock, major shareholder and director of Magnavale, said all available sites had been snapped up during the economic downturn, but now property prices had stabilised, further logistics expansion was only likely to be possible through the building of new sites.

‘No more sheds’

“There are no more sheds because they were all bought up cheaply, so anything from now is new-build,” ​said Hancock.

However, he believed the recent acquisitions made by his fast-growing group had left it well-placed to deal with the market conditions.

Formed in 2013 following the acquisition of Rick Bestwick, which is based in Chesterfield and Scunthorpe, Magnavale lays claim to 140,000m2 of warehouse space and is able to store almost 200,000 pallets across all temperature levels.

Acquisitions

In October, the company added Lancaster Coldstore to its portfolio. The acquisition of Warrington- based CM North West formerly a division of Cold Move followed in November. Hancock said the plan was to “regionalise”​ its services and cut down on road miles.

Magnavale also recently signed a five-year partnership deal with DFDS Logistics to boost the group’s UK-wide and export capabilities.

Hancock said he was “actively looking”​ to acquire more businesses throughout the UK and Europe.

Related topics: Supply Chain

Related news

Show more