In the last few years new materials and construction methods have helped soften the effects of inflation on warehouse building costs. Even so, designing and building a new distribution centre is still a major capital investment. The UK distribution sector has grown steadily in line with the economy, with a 21 percent increase in warehousing floor space from 1999 to 2005, And with current trends such as increasing imports, more home deliveries and more outsourcing, demand for warehousing will continue to grow. However with constant margin pressures, making sure that the warehouse envelope is well designed and cost-effective is more important than ever.
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