The number of business premises used for transport, logistics and warehousing in the UK has almost doubled over the past ten years.
As reported by the Financial Times, “COVID-19 has led to a surge in ecommerce and CBRE estimates that an additional 300m sq ft of warehouse space will be needed in Europe by 2025. The UK, already one of the most developed ecommerce markets in the world, will require an extra 60m sq ft of space — equivalent to 14% of existing warehouse space.”
No easy task
Logistics plays a huge role in the UK economy. It is estimated that the sector is worth £55 billion, comprising 5% of GDP and employing more than 1.7m people. With the continued growth in online shopping since the start of the COVID-19 pandemic, the logistics sector is poised to go from strength to strength.
The infrastructure required to deliver 60m sq ft of space is no easy task. While steps are already being taken to grow warehouse space and, with logistics one of the fastest growing sectors in the UK, it’s essential that both central and local government recognise the need for warehousing, according to the UK Warehousing Association[1].
A bigger seat at the table`
The political landscape over recent years has centred on building houses. But it’s vital that warehousing is supported across all tiers of government and treated as much a priority in planning policy, in the same way that housing and education facilities are often welcomed by local authorities to meet national targets.
While logistics infrastructure won’t ever need to take priority over housing and education, it should have a seat at the planning table. The Office for National Statistics (ONS) said new orders for the construction of warehouses were worth £5.6bn in 2021, higher than in any year since 1985.
West Midlands Interchange
A key example of this is the West Midlands Interchange (WMI), being delivered by Logistics Capital Partners (LCP) and Oxford Properties. WMI is A DCO approved development site, with consent to develop a strategic rail freight interchange in the West Midlands and deliver up to 8 million sq ft of Class A Logistics warehousing, in the middle of the so-called logistics “golden triangle”.
The development is centrally located in the UK, northwest of Birmingham in the key West Midlands logistics corridor. It will deliver significant economic benefit to the region by creating 8,500 jobs and a further 8,100 indirect jobs. It is also expected to generate around £430 million of local economic activity and, through the supply chain, more than £900 million of economic activity nationally each year.
Soon to be the largest logistics site in the UK, it will showcase what can be delivered to support the industry and economy.
How do you generate public support for logistics developments?
Achieving widespread public support for logistics and warehousing is not easy. Local residents and community groups need to be engaged with at the earliest opportunity when it comes to building new infrastructure.
The visual impact on the landscape is always going to be a key factor when considering support for a development, particularly one that includes significant warehouse space and an entirely new road network to support vehicle movements.
Developments such as WMI are working to deliver multimodal access to support net zero targets, and have engaged with local councillors and community groups. Considering environmental and local impacts, aesthetics and access is intrinsic to success.
So what steps can you take?
- Early engagement: Talk to local communities, prior to planning application submission
- Community input: Allowing local communities some autonomy and input into design features such as community parks or local area improvements
- Tell the story: Ensure you tell a clear story about the project – its benefits to the local economy, employment opportunity, net zero aims, traffic management and how you will minimise construction disruption
In conclusion, while large scale infrastructure developments will never be universally popular, they are essential to the backbone of our economy. Inadequate infrastructure negatively impacts the UK and will reduce the efficiency of the logistics sector.
It is vital that infrastructure is in place to support new warehousing and logistics facilities to meet post-COVID demand. Managing public support is a necessity for success in this world and community engagement must be at the forefront of plans.
[1] https://www.ukwa.org.uk/wp-content/uploads/2021/05/Savills-UKWA-A4-8pp-Report-Interactive3.pdf
