We have just been reading a great article this morning from Insider Media. It was a great read which really highlights the rising costs for a warehouse. Take a look here:
?Rising energy and food prices combined with the devaluation of sterling have put a strain on the much of the UK’s supply chain, according to Begbies Traynor’s latest analysis.
The Red Flag Alert research for the first quarter of 2017, which monitors the financial health of UK companies, showed levels of ‘significant’ financial distress within key sectors of the UK supply chain have risen by 26 per cent on average over the past year following increased cost pressures from rising inflation in both fuel and food prices.
This follows the news that UK inflation rose to 2.3 per cent in March 2017, its highest level since September 2013, with transport costs being the biggest contributor, increasing 6.6 per cent over the past 12 months.
Begbies Traynor said the growing uncertainty surrounding the UK’s future trade links with Europe, combined with rising inflation, businesses within Britain’s vital supply chain are “starting to feel the pinch”, with more companies showing increased signs of stress.
Ric Traynor, executive chairman of Begbies Traynor, said: “These figures show that rising energy and food prices, combined with the devaluation of Sterling, have undoubtedly put a strain on the much of the UK’s supply chain.
“As we wait to see what a future UK trade agreement with Europe might look like, these suppliers face continued uncertainty, not just in terms of their European distribution channels but also with regards to staffing, given their higher reliance on European migrant workers.”
?The business recovery practice also said the negative findings are yet to reflect the recent increase to the National Living Wage that came into effect on 1 April 2017, which is set to add more pressure to the margins of these key sectors in the UK supply chain which have a relatively high reliance on lower paid and temporary workers.
Julie Palmer, partner at Begbies Traynor, said: “Levels of financial distress have increased significantly over the past year, and nowhere more so than in the transportation and logistics sector, which continues to be severely hit by ongoing fuel price inflation.”
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