Businesses face new challenges under current economic conditions, so evaluating costs and expenditures is vital to their ongoing success. When considering logistics and distribution operations, getting your warehousing and storage solution right is imperative. The location of your warehousing significantly impacts the continuing cost of your secure warehousing solution. That’s where the North of England can help.
Many companies are discovering the value and cost savings that can be achieved by using storage solutions in the North of England. In addition to competitive rates, a significant level of investment is taking place, resulting in high-quality, secure storage in the North.
Based in North East Lincolnshire, GWS highlights the benefits of using the North of England as a base for warehousing and storage. Whilst the location is convenient, the cost savings compared with warehousing in the South add even more value. So, how does the costs stack up?
Northern Warehousing offers excellent value for money.
A recent report highlighted the difference in warehousing costs in the South compared to the North. The report showed that the average price of warehousing in London and the South East was £16.75sqft, compared to £7.50sqft in Yorkshire and the North East. This indicates that warehousing in Yorkshire and the Humber region can save businesses over 55% per square foot. With rates like these, it is clear that the North of England is a viable option when looking at your warehouse location.
The cost benefits of warehousing in the Humber region
Land & Property Rates
The cost-effectiveness of warehousing rates in Yorkshire and the Humber is affected by several factors. The cost of land in the region is significantly lower than in other areas of the UK, which results in great investment opportunities for property owners. This, of course, affects the overall warehousing running costs in the area.
Labour Costs
The cost of living in Yorkshire and the North East being considerably lower than in the South impacts average salaries. Regional cost of living affects product handling rates, providing additional cost savings at northern warehouses.
Road Network
The Humber region is ideally centrally located for access to the UK’s road network. For example, the GWS site in Immingham can access 75% of locations in the UK within 2 hours. Easy access to networks adds to the efficiency of any business, which in turn supports further running cost reductions. Imagine your warehousing and storage is located in the South and you have customers in the North; your transport costs will be affected. Meanwhile, the Humber region can service as far south as Cornwall and as far north as Scotland.
Port Costs & Proximity
Many businesses rely on importing and exporting, so access and cost of shipping through our nation’s ports is a major concern. Some of the country’s most efficient and cost-effective ports are based around the Humber, and the region has an excellent network of affordable warehousing.
The Port of Immingham, for example, is the country’s largest port by tonnage and offers highly reasonable rates compared to London Gateway or Southampton.
The proximity to the ports adds cost benefits to your warehouse location. If your storage location is close to the port you are utilising, you’ll save money getting your product to the warehouse. This means you’ll be saving money on transport costs before you’ve even started storing your product.
The North Helps Business Growth
With an average saving of 55% purely on the warehousing cost, warehouses based around the Humber region are an attractive option. So, if a business wants to streamline its operation and make cost savings in its supply chain, it should consider moving its warehousing up north. Add on additional factors of road access, handling costs and reduced port rates, and the effect on your bottom line is considerable.
Effective warehouse storage contributes to overall profitability, allowing for further growth or additional investment in other areas of your business. Yorkshire and the Humber offers warehousing that will enable businesses to consider growth that may not have been possible.
GWS Operations Director Simon Williams says, “Northern companies like GWS are helping to promote business development during a particularly difficult time for British industry.”
Mitigating the Rising Cost of Operating a Business.
Warehouse costs are increasing in many areas of the country. London leads the way as some of the most expensive warehousing, not just in the UK but globally. Costs have been affected by an increase in demand for warehousing space. Online shopping is becoming more popular and has increased significantly in the wake of the COVID-19 pandemic. This has made storage space a premium, with many storage providers making the most of this increase in demand.
Running a business is increasingly difficult, with running costs increasing year on year. Everything from property fees to materials to energy costs has shown a significant increase over the last few years. With the impacts of these external factors, reducing costs wherever possible is crucial to ensure a future for businesses around the country. So, increased warehousing costs indicate that companies need to review their operational practices.
Secure warehousing in the North of England can help reduce many of the running costs associated with running a successful business. From transportation costs, labour charges and square footage itself, warehousing in the North holds substantial advantages.
GWS provides Secure Warehousing in the North of the UK
The team at GWS has a wealth of experience in product handling and secure storage. Our friendly team are quick and efficient and can respond to the demands of your business. Being close to the Port of Immingham and a short distance from the Port of Hull means we can reduce logistics costs.
If you are looking for a cost-effective answer to your warehousing and storage, our friendly team are here to help. Get in touch for a competitive warehousing quote today.
