As part of an industry-wide effort to forestall supply chain disruptions, food manufacturers are leasing a record number of square feet of warehouse space in the UK. According to real estate group Savills, the demand from food manufacturers for shed space surged by 58 percent to a record 4.3 million square feet in the previous year, despite the fact that their efforts to prevent that breakdown were unsuccessful. Apparently, this was the highest level of participation seen since the company began keeping records in 2007.
As concerns grow about the availability of food, food companies have been purchasing warehouses to serve many functions, including as slaughterhouses, indoor farms, and storage facilities. Many grocery stores were obliged to implement a rationing system for vegetables in the month of March due to a shortage of supplies, which was largely caused by the cold weather that was experienced in continental Europe and Africa.
The move by food producers goes against the general trend for the need for warehouse space, which fell by 13 percent to 48 million square feet in the previous year. This decline was caused by declines in consumer spending, which forced merchants to cut back on storage.