Stobart snaps up new space

Menzies signals intent with purchase of JBT Distribution

Menzies Distribution has announced the acquisition of Scotland-based logistics specialist JBT Distribution.

The transaction extends Menzies’ network coverage with the addition of 200 vehicles and six operating sites.

JBT boasts annual sales of over £23m and sits alongside Menzies in Motor Transport’s Top 100 logistics companies by size.

Headquartered in Bathgate, West Lothian, with further depots in Aberdeen, Inverness, East Kilbride, Lerwick (Shetland) and Kirkwall (Orkney), the acquisition adds to Menzies’ geographical reach across Scotland and its growing blue-chip customer base. It also provides further capability to Menzies’ growing range of B2B retail logistics services.

JBT has an “outstanding record of reliability in providing solutions across a number of complementary sectors”, Menzies said. These include retail, healthcare – with a specialism in temperature controlled logistics – packaging and parcel home-delivery.

Commenting on the acquisition, Menzies chief executive Greg Michael (pictured) said: “We are gaining momentum at pace as we execute our ambitious strategy for growth and are delighted to acquire JBT.

“We believe that through combining the complementary business with Menzies, there are significant opportunities to grow both businesses through unlocking further geographical capability and expanding services to both sets of customers in Scotland and throughout the UK and Ireland.

“For both our businesses’ customers, it will be very much business as usual.”

JBT director Robert Gordon added: “Menzies is aligned with the future strategic and growth plan in the sectors in which we operate and will enhance the service offering of the business both locally and nationally.”

Haulier secures significant space in Derbyshire to service customer

Stobart warehousing deal a sign of times...

Eddie Stobart has taken on a significant amount of warehousing space on the Merlin Business Park in Derbyshire to help service a customer, amid a “highly active” industrial rental market.

The 134,651 sq ft warehouse space comprises five storage units with up to 8.5m eaves height and loading doors.

Mark Richardson, director at commercial property agent Rushton Hickman, said: “The development was previously occupied for a number of years by a haulier and completely lends itself to Eddie Stobart’s use as a warehouse and distribution site.

“We are seeing increasing demand in the area for large distribution bases, driven by our central geographic location and great road links, in this case with the site being easily accessible from the main A50 trunk road.

Fellow Rushton Hickman director Graham Bancroft said demand for warehousing space was currently outstripping supply: “The market for both the industrial and warehouse sectors remains highly active, with rental levels and investment returns remaining strong,” he said. “The distribution and industrial sectors remain the strongest drivers in the regional commercial market.”

An Eddie Stobart spokeswoman said: “We have acquired the site for expansion and contractual growth we have with a major customer.”

... as report shows Brexit and pandemic hitting transport

Covid-19 and Brexit cut a swathe through the transportation and warehousing sector, with just 75% of companies back up and running compared with June last year and 9.6% permanently closed.

The latest Business Insights Report from the Office for National Statistics (ONS) looks at the impact of the pandemic and Brexit on UK businesses and is based on responses every fortnight on financial performance, workforce, prices, trade and business resilience.

In its latest report, it found that the proportion of firms experiencing problems importing and exporting had soared by over 50% between December 2020 and January 2021.

Firms cited the biggest challenge to be the additional paperwork Brexit had generated for exporters, while transportation costs were singled out as the greatest challenge when importing. The report also revealed that during the period 3-16 May, 38.2% of exporters reported increased challenges around additional paperwork; 26.8% reported challenges with new customs duties; 15.2% indicated reduced demand for products; and 8.6% complained of disruption at UK borders.

David Jinks, ParcelHero’s head of consumer research, said: “The report is obviously grim news for transport and storage companies.

“The root of the problem is that freight transport companies are particularly exposed to the impact of Brexit. This is on top of issues caused by the pandemic.

“It’s extremely concerning that customs problems have not got any better since Brexit regulations first hit in January – that is a damning indictment of current government policy.”

Pall-Ex expands team to smooth new-look model

Pall-Ex Group has doubled its network team to 12 following its acquisition of Fortec and the introduction of a shareholder model.

The group said its newly bolstered team would ensure that shareholders meet quality and customer service standards, support individual business growth plans and aid member recruitment.

Laura Brown, Nick Antill-Holmes, Alice Holdsworth and Kieran Lloyd Jones have been appointed network compliance managers, while Rebecca Wayte has joined as head of network – north and Craig Chapman as head of network – south east. Emma Beales has been recruited as head of network – midlands, and Ashely Diamond is head of network – south west.

Member development director Mark Barlow has been appointed to increase shareholder membership, focusing on key regions for the Fortec Distribution Network, including Scotland.