The e-commerce industry in the UK has undergone a significant transformation as a result of both the Covid-19 pandemic and Brexit. These factors have created a surge in demand for warehousing and transport systems, according to a report from The Office for National Statistics (ONS). In fact, the demand for such facilities has increased by an impressive 88% over the past decade and is now 21% higher than in 2019.
One of the major driving forces behind this increase in demand is the growing popularity of online shopping. With more and more consumers choosing to shop online, major retailers like Amazon, ASOS, JD Sports, Boohoo, and M&S are in need of additional warehouse space to store and process their goods. The rise in online sales has resulted in a sharp increase in orders for new warehouses, reaching levels not seen since 1985.
The impact of the Covid-19 pandemic on the e-commerce industry is clearly reflected in the statistics. At the beginning of last year, online shopping accounted for 38% of all purchases, a significant jump from the 8% recorded at the start of 2011 and the 19% just before the first lockdown. Although this figure has slightly decreased to 28% since then, the demand for warehouses remains high.
The report also sheds light on the growing employment opportunities in the logistics and warehousing sector. Job advertisements in these fields have seen a substantial increase since the start of the pandemic, pointing to the need for a larger workforce to meet the rising demand.
The ONS suggests that the increase in demand for warehousing and transport systems could also be attributed to changes brought about by Covid-19 restrictions and supply chain adjustments following the UK’s exit from the EU.
Interestingly, while the number of transport and storage hubs has been growing rapidly, the number of retail premises has seen only modest growth over the past decade. The report reveals that retail premises have only increased by 11% in the last ten years, and by 3% in the past two years.
Overall, the combination of Covid-19 and Brexit has had a profound impact on the e-commerce industry in the UK. The surge in online shopping has created a significant increase in demand for warehousing and transport systems, with new warehouses being ordered at levels not seen since 1985. The job market in the logistics and warehousing sector has also expanded to accommodate this growth. As the industry continues to evolve, it will be interesting to see how it adapts to meet the changing demands of consumers and the wider economy.
Useful links:
1. Office for National Statistics (ONS) report on the effects of Covid-19 on UK businesses and workers
2. Warehouse Operative Logistics apprenticeship standard
