Developer calls for measures to boost logistics sector

St. Modwen Logistics has called for improvements to the planning system to support the growth of the logistics sector.

The firm, which is one of the UK’s leading logistics owners and developers, has teamed up with property adviser Savills, to ask for measures that encourage more development of modern, sustainable warehousing to keep pace with increasing demand.

The company, which is currently developing St. Modwen Park Derby, is calling on the Government to recognise logistics facilities as critical national infrastructure.

According to analysis undertaken by St. Modwen Logistics and Savills, historic land constraints have suppressed industrial demand by 29% over the past decade.

Over that period national availability has consistently been below the ‘equilibrium rate’ of 8% – the rate at which supply and demand are considered to be in balance – leading many fast-growing firms to halt their expansion plans, creating inefficiencies in supply chains.

Savills calculates that annual demand for new logistics space exceeds the delivery of new units by 58%.

Responding to the Government’s call for evidence on the freight and logistics and the planning system, St. Modwen Logistics and Savills have recommended five key policy changes focused on enabling the planning system to better facilitate the freight and logistics sector’s growth.

They include the implementation of a national policy recognising industrial and logistics facilities as critical national infrastructure and introduce guidance which recognises the importance of wider supply chain employment and the indirect gross value added (GVA) as part of the wider planning balance.

St. Modwen Logistics and Savills also wants to see local authorities set five-year employment land supply targets, mirroring their approach to residential land supply.

And it wants to see the implementation of a government-led training programme to upskill local government planners, local members and planning inspectors on commercial markets and the key trends and market conditions that influence future logistics demand.

Richard Hickman, senior director of planning at St. Modwen Logistics, said: “Logistics is a high-productivity and high-growth sector and one of the engines of the national economy, supporting an increasing number of high-skilled jobs across the country.

“The policy changes we recommend would unlock the delivery of high-quality new warehouse space in the locations where it is most needed.”