Brexit: Stockpiling Automotive Parts

Industry reports indicate that manufacturers are stockpiling automotive parts due to the uncertain outcome of Brexit negotiations. With additional stock of automotive parts, we’ve taken a look at the impact on the warehouse and logistics industry, and what this may all mean going forward.

With delays in a Brexit deal being made, manufacturers within the automotive industry have started to stockpile parts and equipment to bridge the gap. Reports suggest there could be delays at customs, and additional regulations coming into force, which may impact automotive parts coming into the UK from the EU. Stockpiling refers to placing a large amount of stock of parts, machinery and goods into storage for use at a later date. This is something that other industries are also considering in light of Brexit discussions – including food and beverages, pharmaceuticals and other manufacturers.

The automotive industry has been one of the most vocal when it comes to Brexit, indicating that jobs are at risk and manufacturing may be forced to move to Europe in the future. Whilst Aston Martin maintains that it will remain manufacturing in Britain, others suggest they may require a move in manufacturing plants.

What does this all mean?

The car industry is beginning to stockpile automotive parts in the wake of delays to the Brexit deal. In order to maintain levels of manufacturing, retain jobs and continue operations as normal the industry has started to keep additional stock in UK based warehouse spaces.

The advice to those industries who are opting to stockpile goods is to utilise existing warehouse space, rather than looking to build additional dedicated spaces for short term warehouse solutions. With the shortage of warehouse space in the UK a hot industry topic, the advice if to find spaces in existing warehouses and use this capacity to it’s full potential.

Warehouse suppliers can expect to see a rise in enquiries for short-term warehouse space, especially for stockpiled goods across different industries. For the automotive industry, it is likely that these parts will slowly filter into production over the next 12-18 months, and things could change once a Brexit deal is made.

How can we help?

The NX Group provides a warehouse and logistics solution for your goods, tailoring the solution to fit your needs. If you are looking for warehouse space for stockpile goods in the wake of Brexit, we are here to help. Based in Northamptonshire, our prime location is perfectly situated for distribution throughout the UK. Our same day courier service means we can get parts to you on the same or next day to meet any urgent orders. We are here to discuss any questions around Brexit and supply chain, warehouse requirements and more. Give the team a call on 01604 217855 or email us

Brexit Automotive Stockpiling