Logistics & Warehousing Sector
posted on: 15th February 2022 / category: Uncategorised / posted by: UKDC
Is Yorkshire The Next Major Growth Area?
The Logistics & Warehousing sector has been growing at record highs throughout 2021 and into 2022. This has resulted in a significant impact on the availability of existing buildings and a shortage of land to deliver new developments to keep up with the demand.
According to recent demand studies currently just under a tenth of the Yorkshire workforce are employed in logistics by 18,745 businesses, indicating the vital role this sector plays in providing employment and generating growth for the region.
Given the shift in consumer spending habits and a move towards e-commerce, the rise of the discount grocery chains, third-party logistics, stockpiling due to Brexit and of the pandemic, warehouses are hot property and as a whole, the logistics industry is running at full capacity, due to increased contingency in supply chains.
With vacancy rates at all time low levels, businesses are taking up warehousing as quickly as they are put on the market. It is predicted that to keep pace with this growth alone the UK will need to create millions of square feet of additional logistics space over the next three to five years.
Yorkshire has seen an increase in activity within this sector with many businesses moving their operations to the region. The attraction for logistics operations is largely geographic with Yorkshire having superb transport links and the rest of the UK within four hours reach coupled with the availability of good labour and competitively-priced properties. This is further enhanced by over half a million businesses in the located in the region to potentially trade with.
Yorkshire is also home to The Leeds City Region, which has been named as the largest centre outside of London for the services sector. We have also seen significant interest in Sheffield situated to the South of the Region and Doncaster which is home to iPort, one of the largest logistics hubs in the North of England.
The Region is certainly one to watch with values increasing and accessibility amongst the best in the UK. This sector has a big role to play in post pandemic economic recovery and in levelling up.