Think outside the box

THERE IS no doubt that the growing demand and the rising cost of warehouse space in the UK will continue to pose a huge challenge for supply chain professionals throughout 2025. The most recent UKWA Report explained that “the role of the warehouse has never been so important, and the amount of warehouse space needed continues to rise”. According to research by real estate consultants Knight Frank, this problem could be intensified by the fact that about 60% of all units above 4,645sqm in the UK “risks failing to meet minimum EPC B requirements by 2030 and will thus be unlettable”, which would only push demand up further.

The evolving role of warehouses - now often serving as central hubs of supply chain activity by absorbing tasks historically carried out upstream by manufacturers and downstream by retailers - has not only exacerbated this issue but is now placing further emphasis on businesses to focus heavily on innovative strategies to optimise space, reduce costs and enhance operational performance.

This approach is clearly evident through the conversations we have been having with both new and existing clients during 2024, and we expect to see this continue over the next 12 months. Whilst the benefits of switching from wooden to plastic pallets is well documented, including long-term cost savings, increased sustainability by reducing deforestation, support for the circular economy, and safer handling, to name but a few, one of the most significant factors driving this shift is the compatibility of plastic pallets with automation systems.

Space optimisation has also been an increasingly important consideration over the last year, and we have seen a growth in customers seeking out products, such as folding large containers, sleeve packs and nestable pallets. All of these save space when not in use, not just in the warehouse, but also within trailers during return journeys. We began to add space-optimising pallet boxes to our range in 2016, and they have seen a steady increase in popularity, which has only accelerated over the last year. In fact, sales of folding large containers, such as the GoFLC 980 (a 1200 x 1000 x 980mm box that holds 847 litres but has a folded height of just 317mm when not in use), have jumped by more than 30% year-on-year. To support this trend, we have also seen a 22% rise in sales of foldable sleeve-packs during 2024 too. To illustrate its effectiveness, one of our most popular models, the CabCube 1210 9F 2.0, saves approximately 75% storage space when collapsed.

While space optimisation is critical in warehouses, nestable pallets are also being used more widely by logistics managers to reduce the number of trailers required for return journeys, helping to cut costs and emissions. You can typically load a 13.6m trailer with up to 1,450 nestable plastic pallets (each 1200x1000mm stack will be 50/55 units), compared to just 400/450 wooden pallets (in stacks of 15/18).

Of course, these types of solutions are highly effective but should form part of a broader warehouse space optimisation strategy - one that addresses both current needs and future requirements. Long-term forecasting, a carefully designed layout, and the strategic use of warehouse management systems are all essential components of this approach. From our conversations and data, it is clear that space optimisation remains a top priority for 2025, and space-saving pallets and pallet boxes will continue to play an integral role in achieving this.  

Jim Hardisty, managing director, goplasticpallets.com

For more information, visit goplasticpallets.com