London, UK: A survey of United Kingdom Warehousing Association (UKWA) members has revealed that 77.5% of warehousing firms have seen a reduction in inbound volumes over the last two weeks while 83.5% have seen a reduction in outbound volumes.
Only 4% have been forced to close operations as a result of the coronavirus crisis but 68% are experiencing increased levels of sickness/absence and 60% have reduced shift patterns and productivity.
The survey revealed that 60% of warehouses are leased and 70% of respondents with fixed storage charge income receive less than half their total income from this (the other income streams being charges for handling and value-added services).
Other findings included:
- 64% are in the process of and/or considering furloughing
- 60% have a shortage of warehouse operatives
- 58% are concerned about their cash flow and customers’ ability to pay
- the market is currently operating at 87% of capacity
UKWA commissioned the survey of members to better understand and monitor what is actually happening ‘at the coalface’.
UKWA has already introduced a warehouse space matching service for those needing more storage and is working with recruitment firm Harri to help transfer workers from the hospitality industry into warehousing and logistics jobs.
