A Genuine Growth Opportunity

17th March, 2022

The UK is running out of warehouse space, so let's grow some more, says Sebastián Hernández Maetschl, Head of Building Concepts at Stora Enso.

At the end of 2021, available UK warehouse space fell below 50m ft2 for the first time since at least 2009. If that sounds like plenty to spare, it isn't – UK businesses took up roughly that amount from just January to September the same year. The fact is that the pandemic accelerated an already rampant (and probably irreversible) trend: the shift to ecommerce and consequent need for warehousing and distribution space.

And of course – as it is 2022 – it is important that these are built in as green a manner as possible. What to do? New warehouses don't grow on trees, after all, but the idea isn't as far from the truth as it might sound. A new generation of industrial buildings are emerging that are built using engineered timber. As an approach, massive wood construction offers the possibility of low carbon, faster, more efficient construction to help meet the UK's voracious demand, as well as a host of other valuable benefits that align with the country's strategic priorities.

Low-carbon, high performance

Of course, the UK warehousing and logistics sector doesn't exist in a vacuum. It exists against a backdrop where the government is pushing a l ow-carbon industrial strategy, and where ESG pressures (with an emphasis on the 'E') are factoring into investor and boardroom agendas more than ever before – and neither warehouse tenants nor commercial real estate developers are an exception.

In this regard, timber industrial buildings are a long-awaited alternative for a corner of the construction sector that has historically had no option but to rely on carbon-intensive concrete and steel.

Timber industrial buildings can cut embodied carbon emissions by up to 30% versus comparable structures made with traditional materials. Too often, the carbon conversation focuses narrowly on operational emissions when it comes to buildings – those created through use of the building throughout its lifecycle. Those are important, but we shouldn't lose sight of embodied emissions, which are those inherent in the fabric and materials of the building itself. That would be like focusing exclusively on fuel use for your car while waving away the emissions involved in extracting, refining and assembling 1.5 tonnes of metals and plastics into a vehicle.

When sustainable forestry practices are followed, wood is a completely renewable and carbon negative material. In the cultivated forests of Northern Europe, trees are planted at a faster rate than they are harvested, and those trees remove and trap carbon dioxide from the air as they grow. That carbon stays locked away when the tree is harvested and the wood turned into engineered timber components, meaning that for the lifecycle of a wooden industrial building, it is keeping that carbon from adding to the atmosphere. Of course, there are other emissions involved in processing and transport, but this means that engineered timber's overall embodied carbon emissions are radically reduced versus materials such as steel and concrete which create vast quantities of carbon emissions during its production.

Timber industrial buildings are a way for developers and warehouse tenants to improve environmental performance, both as a goal and as a way to improve standing with shareholders, consumers and other stakeholders.

Fast growth warehouses

In the context of warehouse space shortage, a major attraction of timber industrial buildings is that they can be erected fast. Engineered timber elements naturally lend themselves to prefabrication and modular construction methods, allowing for components to largely be built offsite. Then, once they are delivered, it is a relatively simple matter of fitting the pieces together, which can be completed by a small, skilled team in a short matter of weeks. Not only is the total build time accelerated, but there is less time with active work onsite and fewer deliveries, reducing contracting costs and disruption to the local area. This is especially important when there are concerns about impact on nearby residents, or if the build has to be integrated into a broader set of local works and developments.

The design stage also factors heavily into the total speed of the project. Not only does a modular approach lend flexibility that allows smart developers to accommodate external factors like adjacent developments etc, but the speed of the design itself is important. Pre-optimised base designs allow architects to select an appropriate specification from eight different spans and customise for their needs. These range from 12 to 36m spans, from small workshops to large retail sheds and warehouses, and include fully interactive 3D models and technical specifications. Pre-optimised design plus prefabricated components make for a nigh unbeatably rapid total project lifecycle – a handy option for developers racing to meet runaway demand.

Bonus benefits

Though they may not be central to the final investment decision to press ahead with a timber industrial building design, there are several supplementary benefits that are nonetheless worth consideration. For example, taste is subjective, but timber buildings can be strikingly attractive compared to corrugated metal sheds. This 'soft' factor may feature in hard business decisions if it helps secure planning permissions and local support where space is at a premium and industrial land abuts residential.

Studies have also shown that timber buildings can be better for occupants' health and productivity. Productivity rates go up by 8% according to one study, while general wellbeing improves 13%. These benefits are already recognised and valued for educational and office environments, but workers in the warehousing and logistics sector are surely no less deserving or needful.

So, no – warehouse space doesn't grow on trees. But you can turn the trees themselves into warehouse space and there is a wealth of benefits to doing so, from speed to sustainability to aesthetics and wellbeing. If the UK really is running out of warehouse space, then the solution is simple: let's grow some more.

Source: Stora Enso


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