BPF: Government must encourage industrial development as well as housing

BPF have warned that central and local government must recognise the importance of the industrial sector for economic growth and the role of logistics

The British Property Federation (BPF) have today published Delivering the Goods, which highlights the valuable contribution that the logistics sector makes to the UK – £100Bn Gross Value Added per year.

They are now calling on the government to recognise the importance of the logistics sector in the UK and the role the industry plays in the wider economy. With the increased competition for land from higher value uses such as housing, the BPF would like to see Government departments coordinate their approach to development to ensure that needs are being met for the wider industrial sector.

Melanie Leech, Chief Executive of the British Property Federation, said: “The logistics sector can often be overlooked, and few realise what a vital part it plays in our everyday lives. Delivering the enormous amount of online orders placed on Black Friday, for example, would not be possible without the logistics sector.

The findings in the report show that the logistics sector supports a minimum of 56,000 businesses, employing 8% of the UK’s workforce with around £2.2M jobs in the logistics sector. Employment in warehousing operations increased by 40% between 2009 and 2014. The salary growth is also 3% over the national average over the last five years. Within the sector, only 15% of employees work part time, compared to an average of 32% in other sectors.

Gareth Osborn, Chair of the BPF Industrial Committee and Head of Logistics at SEGRO, said: “With a shortage of industrial land, coupled with an increasing need for housebuilding, the industry faces great challenges when it comes to acquiring sites as well as securing planning permission for industrial uses. This report highlights the vital role the sector plays in our everyday life, as well demonstrating its contribution to the wider national economy.”

The BPF are asking to see coordinated infrastructure planning so that industrial land is given adequate provision in Local Plans, which can help ensure the delivery of road, rail, port, energy and digital connectivity to support the industrial and logistics sectors.

 

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