The research highlights opportunities for expansion in UK logistics
Against a global backdrop including shifts in US leadership and geopolitical tensions, the industrial and logistics (I&L) sector stands out as a beacon of opportunity for UK economic growth.
New research from property company Potter Space and Savills demonstrates how strategic investment in this sector could help drive Britain's economic renaissance.
The data, outlined in the industry report BIG things in SMALL boxes, reveals the I&L sector's impressive 7% contribution to national GVA, establishing it as a cornerstone of the UK economy.
The research highlights an exciting opportunity for expansion - with targeted investment in the sub-100k sq. ft market, the sector could generate an additional 94,000 jobs and contribute a further Ā£5.9bn in annual GVA to the UK economy.
The UK's position as second in the Global Innovation Index showcases its exceptional R&D capabilities and entrepreneurial spirit.
By unlocking the full potential of the I&L sector, this innovation prowess could be transformed into tangible economic growth.
Jason Rockett, Managing Director of Potter Space, said: "The I&L sector has been the fastest growing UK economic sector over the past five years, delivering higher than average wages and robust growth forecasts.
"Its impact amplifies across the economy - when I&L thrives, we see corresponding growth in manufacturing, e-commerce, and emerging technology sectors.
"With increased attention and support, this sector could create thousands more quality jobs and drive substantial economic growth across our regions."
This transformative potential is already evident in businesses that have secured appropriate facilities.
Charles Hassall, CEO of Potter Space tenant Falcon Contract Flooring, said: "Securing the right industrial space has been vital to our growth journey.
"Relocating to a 28,450 sq. ft. facility at Potter Space has transformed our operationsā€”allowing us to eliminate double handling, enhance storage efficiency, and uncover new revenue streams by providing quality storage and distribution services.
"For ambitious companies like ours, high-quality and sustainable industrial space is not merely about square footage; it's about building a foundation for future growth and giving a home to our FCF family.
"Since our move, we've experienced significant scaling in our operations, resulting in a turnover of Ā£16 million last year and supporting a dedicated workforce of over 140 individuals."
Mark Powney, Director of Economics at Savills, added: "Across the UK, we're seeing tremendous potential for growth among SMEs.
"By ensuring these businesses have access to suitable, affordable space, we can enable them to scale operations domestically, foster innovation, and contribute to regional economic development.
"This represents an exciting opportunity for the UK economy."