Temperature-controlled specialist JS Davidson has reconfigured its warehousing space at its Peterborough site amid a flurry of enquires for ambient storage options.
JS Davidson, which has sites in Peterborough, Bourne and Spalding, has made 2500 pallet spaces available at its Peterborough site to accommodate the growing demand from food and drink manufacturers and distributors seeking both flexible and reliable warehousing solutions.
According to John Davidson, Managing Director at JS Davidson, many manufacturers now favouring shorter-term contracts with smaller volumes over long-term, high-quantity agreements, with this shift is largely being driven by the need for greater flexibility in managing fluctuating demand as well as navigating ongoing supply chain uncertainties.
This trend coincides with the looming threat of tariffs of up to 30% on EU exports to the USA, which is prompting many European businesses to relocate manufacturing operations to the UK.
In response, the Food and Drink Federation reports that the UK is increasingly being viewed as a strategic hub for European food and drink manufacturers aiming to preserve smooth access to both EU and US markets while reducing exposure to risk.
In addition, in May, the UK and EU reached a landmark trade agreement aimed at cutting red tape and streamlining the trade of food and drink between the two.
The deal aligns the UK’s sanitary and phytosanitary (SPS) standards with those of the EU, eliminating the need for costly checks on food products and significantly reducing border bureaucracy.
Together, these factors have resulted in a surge in demand for high-quality, ambient storage that not only supports just-in-time delivery models but also more agile and efficient inventory management for firms.
At the same time, retailers and suppliers are continuing to adapt their inventories to meet consumer expectations, which in turn is driving demand for flexible, ambient storage solutions that can support more dynamic stock rotation. A shift that is largely being fuelled by consumers increasingly looking for products that offer both practicality and longevity, particularly as cost-of-living pressures continue to influence purchasing decisions.
John Davidson commented: “In recent months we have witnessed a surge in demand for ambient storage, particularly from food and drink manufacturers looking for greater flexibility in how they manage their stock. We’re responding to this need by reconfiguring our warehousing space to free up capacity, with the added benefit of continuing to offer flexible storage terms that help businesses remain agile and competitive in a market that is becoming more unpredictable.
“There are several factors that have probably led to this rather than one singular event. The shift in consumer buying habits, spurred by a renewed appreciation for the convenience, long shelf life, and value offered by ambient products, is certainly a cause. But then there’s intangibles such as business reaction to imposed tariffs and of course the flurry of trade deals which have recently been agreed that are either encouraging companies to rethink their operations or invest in new markets.
“It’s probably too early to gauge how much of an effect these trade deals in particular will likely be augmenting this demand, however what is clear from our perspective is that international businesses are beginning the groundwork to either breaking into the UK market for the very first time or accelerate their footprint here. To cater to this, we’re doing what we can to make our storage solutions both scalable and flexible to ensure we can meet the evolving needs of our customers both existing and new as the marketplace evolves.”
