e race to British warehouse space is on. As the prospect of a no-deal Brexit looms on the horizon, some UK companies are stockpiling goods in the event of a disorderly departure from the European Union. Narrowing aisles,
floors, temporary structures, and racks removed for floor to ceiling pileups.
Owners of frozen and chilled storage space say they're fully booked until the middle of next year. And the government's asked for more secure storage for medication to be built. Companies typically want space for about six to 12 months. Much less than the normal five-year contracts. The EU is Britain's biggest trading partner.
And there are fears that a disorderly Brexit would lead to border checks, blocked ports and major tail backs on the roads. Threatening the $540 billion worth of goods that move back and forth. Companies from Rolls-Royce and Air Boss, retailers and manufacturers have all said they're building up stock ahead of Brexit on March 29th.
And it's effecting small businesses, too.>> So no-deal scenario really scares me. I mean, chocolate can't stop. It's gotta keep moving the whole time. Regulations are strictly enforced. We're no longer part of the club. And goods can get rejected perhaps more easily.>> But for now, stockpiling is the order of the day.
Robert Hardy's farm has seen a lot of companies get in touch in preparation for an increasingly likely no-deal event. He says the worry for new businesses may be unnecessary.>> This is unfamiliar territory to them, so their reaction is not necessarily the right one. And stockpiling is rather a panicky knee-jerk reaction.
When there are custom simplifications, it can make life easier.>> Brexit backers have always accepted that the economy would take an initial hit. Though they insist that it will benefit from new trade deals in the long run. But with so much uncertainty, these companies aren't taking any chances.