Go back not very far and the biggest considerations about where to put a brand new warehouse somewhere in the UK would be a function of (i) where you want it; (ii) land & labour prices and; (iii) likelihood of achieving planning consent. These three factors have not gone away, they are still very much at the heart of the logistics network development choices that businesses have to make.
However in recent times an issue that was never really a discussion point has now become front and centre of infrastructure development…. The amount of power available from the grid to support new warehouse development.
There are currently parts of the UK, and as we are reliably informed, the northwest of England is a big one, where even with planning consent being granted for warehouse developments there is insufficient grid supply to even support basic warehouse operations such as lighting, forklift truck charging and general power requirements.
If you happen to be an operator that requires a high degree of power usage particularly those requiring temperature controlled or automated warehouse solutions there are simply some areas where it is best to say ‘forget it’.
There are a whole host of root causes that have led to this situation. Over many years there has simply been insufficient investment in the UK Power grid to support the changing needs of the UK economy. The move away from fossil fuels and particularly towards electrification is putting unprecedented demands up on the UK Power grid in ways that the current grid was simply never designed to cope with.
The move towards renewable energy has also created geographical and time imbalances when power is available to the grid. We have moved away from large coal and gas power stations that generally produced a stable and reliable stream of electricity towards sustainable solutions, some of which can be a little patchy in maintaining consistent supply.
This is not to say that the move towards sustainability is the wrong thing to do, quite the opposite. However we need our Power Distribution network to catch up and keep up with changing business and consumer demands.
We can all see the time and cost it takes to add new nuclear power to the grid, and likewise the challenges there are in creating adequate Power Distribution infrastructure across the country, with or without the new generation of super-efficient pylons that are now in play.
It certainly speaks volumes when there are plans to potentially lay direct power lines to the UK from North African sources of stable and predictable solar power, but this still comes with significant periods every day where no power is generated, will take years if not decades to deliver.
So, until the UK Power grid catches up with it’s demand, what can we do?
Well the first thing (and it is pleasing to note there has been some movement on this), is that warehouse development needs to be significantly more sustainable in its design and development. Many warehouse design architects are now adding critical sustainability features to warehouses prior to their construction. Solar panels are generally the most obvious addition but there are often a number of other sustainability features such as better insulation and cladding, ultra low powered lighting and other such features now being factored in to standard warehouse construction. (n.b. why this has not been done for the past 20 years is a different question that perhaps requires a longer answer).
Some logistics parks are being constructed with their own wind turbines to help provide power, and some forward thinking logistics park developers are specifically focusing on creating excellent power links to their sites to enable them to support future development opportunities.
Perhaps one of the biggest challenges that organisations face is the electrification of their goods vehicles. As this starts to enter mainstream logistics the challenges in recharging those vehicles will become more acute as will the availability of the power to support that charging. We already see that the installation of domestic electric car charging points could be subject to restriction in the near future simply due to the availability of power in certain geographies. It is certain that if the consumer is affected in this way that businesses will be affected just as badly, if not more so.
If you are considering opening new warehouse space of your own or perhaps leased from a developer start thinking now about the requirements for power you will have not only to support current operations but also to help you identify the critical factors that may change throughout your tenure within that facility. It may be that a solution which is right for your operation now may quickly become a challenge for your operation in future.
There are no simple answers and one of the biggest factors in all of this is the requirement for crystal ball gazing about what the future looks like for your business and its customers. This however is a question that most businesses should be seeking to answer fairly regularly to ensure that your warehousing and logistics operations or continually fit for purpose for your business.
Please contact us at ASCALi to let us help you navigate the path towards optimising your logistics and warehousing infrastructure. Our team of specialists are here to help you identify the most sustainable warehousing and transport solutions.
