Over the last six years the global storage market has steadily expanded, driven by retail evolution, e-commerce fulfilment growth and demand in specialist, high-end sectors such as art, heritage and wine storage. Yet the upward trend has been a little lumpy.
The UK manufacturing base has faced double-digit increases in input costs including steel, timber and coatings, while factory energy bills have soared and supply chains remain tightly stretched. On the metals side, UK domestic production has been disrupted by high electricity costs and international competition; one recent analysis flagged energy-intensive manufacturing in the UK as under serious pressure.
The core materials for our sector including timber panels, specialist finishes and electronics for in climate-controlled storage, have all seen input-cost inflation; and given our reliance on steel, we are paying very close attention to the UK steel strategy and potential supply bottlenecks.
Our workforce, though skilled, has also come under pressure both in terms of recruitment and retention of experienced fabricators and welders, with migration of workers and competition for skills on larger projects such as Hinkley Point.
But from adversity springs opportunity: In my opinion, firms that have adapted their design, sourcing, sustainability and delivery models, are now in a stronger position. At Moduflex I believe we have and continue to do just that. We are also working market challenges into our planning and business models to ensure we are mitigating impact through preparedness. There are other factors that also provide me reassurance and determination to optimise opportunity.
Leading the Way in Sustainable Manufacturing and Public Sector Partnerships
Across the UK, the landscape for government and public sector procurement has been changing rapidly. Legislation and policies around net zero, sustainability and social value are reshaping how tenders are evaluated and delivered, with some contracts now seeing a 20% or more weighting around sustainability, carbon emissions or net-zero ambitions, in addition to social value and corporate responsibility. Procurement teams are not only looking for quality and cost-effectiveness, but for measurable environmental performance, community impact and responsible sourcing. As a long-standing UK manufacturer supplying the business-to-business market, we recognise this shift first-hand. Our customers’ needs are evolving, both in what they require from our products and in how they must evidence their own and their supplier’s sustainability commitments.
At Moduflex, we are investing, adapting and innovating to stay ahead of this changing landscape. Our UK-based production operates on up to 100% renewable electricity generated from on-site solar panels. We source our steel from a UK supplier, minimising transport emissions, and it contains 80% recycled content, we have sought to introduce the use of XCarb® green steel, produced from recycled steel using 100% renewable energy too. Our standard range of MFC is now more environmentally conscious, with no new trees being felled to go into the product and is 50% recycled. It is manufactured using biogenic, fossil-fuel free glue. Through investment in precision manufacturing technology, we’ve also significantly reduced waste and all steel and wood by-products are also further recycled or used in biomass heating. Following a full Carbon Reduction Assessment, we are also converting all lighting to LEDs and looking at replacing gas-fired drying ovens with electric infrared models, changes that will reduce our CO₂ emissions by 40% within the next 12 months.
So, I am proud to say that Moduflex has, what I believe to be, good sustainability credentials, and with further improvements to come. For customers doing government and public sector tenders, I feel we are in a strong position as a supplier, and as the requirements of tendering and product specification continue to evolve, we want to work closely with our customers to understand how we can further support their sustainability goals and strengthen their value propositions. Whether in the public or private sector, collaboration is key to creating meaningful, measurable impact and we’re committed to leading that change together.
Import/Export Dynamics have also been changing. Whilst there are increases in global freight costs and additional customs complexities, from an export perspective UK firms have an advantage in that shipping modular assemblies to Europe, the Commonwealth and even further afield is becoming viable as clients pay for faster turnaround and bespoke capability. The last few years has seen an increase in the export of Moduflex products and services as companies look away from far Eastern supply of cheap, low-quality products and look for UK-made quality.
There are also many new market opportunities and verticals to explore, so I want talk about growth horizons. We are looking to expand our proposition to customers in markets and sectors I believe will see further demand, with the right strategy.
Retail & Experiential Stores: Retail is shifting from just “display” to “experience”, and behind the scenes there is growing demand for flexible back-of-house storage, returns handling, omnichannel fulfilment and modular shelving in premium stores. We can provide both aesthetic front-of-house solutions and effective back-of-house systems, that are more robust and better suited to protecting higher-value garments than those of our low-cost competitors. British made, does mean better quality in this case. So, any of our customers looking to promote back of house systems that protect high-value stock, please get in touch.
Self-Storage & Micro-Warehousing for E-commerce: Space is a premium so the efficient storage of goods to optimise square footage, coupled with the increase in online retail shopping, means there is significant demand that we have the opportunity to meet. E-Commerce storage and warehouse expansions have been rapid to match the exponential growth of online retail and fulfilment centres. This is driving demand for efficient warehouse shelving solutions, modular shelving systems, quick-install kits and value installs. While margin may be lower per unit, volume and repeatability could drive a new revenue stream. This an opportunity not to miss and something we are keen to develop further with our key customers and loyal partners. We are also noticing a potential change in the way volume goods are transported and displayed, leading to increased need for decking panels and similar products. I would be interested to explore this emerging trend with customers, so please share your thoughts.
Circular Rental/Refurb Models: Sustainability is no longer optional. Providing bespoke lockers and shelving systems on lease/rental, and offering refurbishment services, positions those companies embracing this model ahead of the curve. There is an opportunity to capture value through lifecycle-service models rather than just one-off sales. Again, I would welcome conversations about opportunities in this space, so get in touch to talk to us about our locker range or to explore development.
In addition, the growing market for community rental schemes, libraries of ‘things’ and other ‘borrow and return’ businesses models are driving the need for robust lockers and electronic passcode systems. Another product line we have been developing.
Healthcare Facility Growth: Expanding healthcare infrastructure, pharmaceutical and gas bottle storage requirements are creating sustained demand for specialised shelving systems with compliance and security features. Can we help you with solutions to meet your customers more than half-way in this market?
Public sector and military: With a change in Government comes opportunity. Whilst the public purse strings remain tight, we are seeing a little more investment in policing and defence following the Strategic Defence Review, which outlined a move to warfighting readiness. The review set out a commitment to accelerating the adoption of new technologies such as drones, improving kit, equipment and accommodation and overhauling the ‘broken’ procurement system. There is opportunity within this market, which is already translating into orders. We have experience within this space, and our inhouse Design Team can work at speed to adapt previous military spec’ ranges to evolving customer need.
Exports – Europe / Commonwealth / Global: UK fabrication and modular design are increasingly respected in global markets. By designing for export (light, easy shipping, quick install) we can access new geographies and spread risk beyond the domestic market.
Bespoke and specialised storage for museums and galleries. Customers are demanding precision, climate-controlled racking, modular storage for artefacts, and curated roll-out programmes. Because heritage collections cannot compromise on quality, our UK-based engineering and heritage-aware design give us a distinctive edge in this arena. Similarly in the Art & Private Collections space. High-net-worth clients and institutions want white-glove storage, seamless integration of security, climate‐control and design-aesthetics. Our ability to deliver premium finishes and bespoke layouts is a differentiator.
Wine & Premium Cellars: This is also a growth niche worldwide. Wine storage demands climate control, design elegance and usability. Whether it’s a boutique retailer, restaurant or a private cellar, we can deliver the integrated solution of storage + climate + design, and we’ve had some success in the space working with partners to deliver to some prestigious end users.
Of course, none of this is free of risk. We all face several on-going headwinds to battle against: Material & energy-cost exposure in the form of steep price swings, high UK electricity tariffs, supply ambiguity. We all still face workforce and skills bottlenecks with welding, metal-fabrication and project management talent in shorter supply, thanks to competition from other sectors. Trade and regulatory uncertainty will also persist, even with current frameworks, shifts in tariff regimes, standards and logistics costs remain real risks for UK exporters. And lastly, but by no means least - concentration risk. A business model overly reliant on a handful of large clients is vulnerable if those contracts don’t renew or budgets shrink.
Forward Look: 2026 and Beyond
So where are the opportunities to work with our customers to combat industry and market challenges together? Looking forward into 2026 and beyond, the narrative is clear: growth will favour those who can design, manufacture and deliver bespoke, sustainable, export-ready storage solutions. The global demand-drivers (heritage, premium, experiential retail, and e-commerce fulfilment) will continue to expand, while supply-chain turbulence persists, and that gives well-positioned UK manufacturers an edge. If we work together, act now to sharpen our modularity, diversify our markets where required (or commit to core ranges in line with exponential demand) and embed circular service models within our customer offer and product ranges, we can not only navigate the next hurdle but proactively forge a way through it.
So, in addition to our commitment to support our customers with sustainability ambitions and requirements, what’s our position within the industry – what does Moduflex bring to the table? Well, I believe 2025 proved that our skillset of deep engineering and fabrication expertise and bespoke design capability coupled with our UK based production and proven sustainability credentials, are all strategic advantages that underpin our USP, which we will continue to sharpen and develop for 2026. We can collaborate, iterate and deliver faster than many offshore alternatives and we benefit from UK-based quality assurance standards and, in many cases, heritage client references.
We are also a family-run business with a loyal team at its heart. Many of our core staff have been with us for over 25 years. Their deep knowledge of our industry, organisation and customers ensures exceptional, consistent service and a continuity that’s hard to find elsewhere. Often with an established workforce, there is sometimes stifling of new technologies and embracing new ideas. At Moduflex, we couldn't be further from that, we remain a heritage manufacturer, but we are looking at the future of manufacturing as well. We are proactively horizon scanning and would welcome round table discussions with customers and suppliers to collectively identify risk, opportunities, solutions and collaboration opportunities that are mutually beneficial.
The pressures of the past few years have tested us all, but they’ve also refined our offering and forced us to become more efficient, more sustainably credible and more creative. If you are looking to increase, diversify or expand your propositions within any of the markets I’ve outlined, or have avenues that need co-creation to fulfil requirement, want assistance to improve tender outcomes or identify joint marketing and PR opportunities, I’d welcome a conversation.
Let’s explore how UK craftsmanship, engineering precision and sustainability can transform your storage challenge into a strategic advantage. Get in touch with the team today, and let’s get ready for a successful 2026.
Richard
