For a long time now we have been hearing about the industrious Chinese, how they can produce product quicker, cheaper and better quality than the developing country. But where does that leave the rest of industry! We still need to transport the goods and we are constantly being told how precious the fossil fuels are becoming, subsequently their cost is constantly increasing. To offset this, and to meet the production volumes as dictated by the industrious Chinese we are producing ever increasing volumes, and that means increased storage space and increased storage periods caused by the ever increasing volumes and in some cases poor or no demand. But who needs this product, there is only so much product consumers need.

In the UK high prices dictated by shortages of land, reflect in high storage costs. High fuel prices and taxes, means increased distribution costs. To convince us we need this product, costs are reduced, but to the extent that there is nothing left over to pay for the distribution, the storage and heaven forbid, actually make a profit. If the product is a single purchase, once you have one, and the whole country has one, who is going to buy the rest of the stock being stored, racking up ever increasing storage costs and so the slippery slope starts. No sales, no revenue, no payments of suppliers, no business. i.e. bankruptcy! and the poor old logistics contractor? No income and warehouse full of product nobody wants!

Andy Hurst
Director