Industrial and logistics (I&L) is a key driver of the UK economy. It feeds goods and services pan industry, and sector jobs have grown by 330,000 over the last decade, outperforming the economy average in almost all regions. Transport & storage sector jobs growth is forecast at a least another 300,000 over the next 20 years.
Iceni launches its 2025 Industrial, Logistics & Data Centre research
07 Oct 25
Iceni launches its 2025 Industrial, Logistics & Data Centre research The Labour government has shaken up the planning landscape and economic growth remains a central commitment to its agenda.
Iceni’s 5th year of annual research into the industrial, logistics and data centre (ILD) sector unpacks how central it is to achieving this growth.
Industrial and logistics (I&L) is a key driver of the UK economy. It feeds goods and services pan industry, and sector jobs have grown by 330,000 over the last decade, outperforming the economy average in almost all regions. Transport & storage sector jobs growth is forecast at a least another 300,000 over the next 20 years.
Our research highlights how housing, employment and industrial space growth are intertwined. The Government’s Standard Method for housing need sees requirements across England increased by almost 150,000 homes per annum, or up 66%, from around 223,000 to nearly 371,000. New homes in the next 5 years alone are expected to require an additional 7-9 million sq ft of last mile logistics floorspace.
The Government’s emerging New Towns programme could directly generate demand for 2.5 million sqm (27 million sqft) of commercial floorspace, of which around 82% is industrial and warehousing, providing the spaces for jobs growth, deliveries and services.
Providing I&L space is a central part of delivering the UK’s Modern Industrial Strategy, delivering growth in Life science, Defence, Manufacturing, Energy and more. Government needs to recognise the criticality of planning for the sector in delivering growth ambitions.
In particular, Local Growth Plans and Spatial Development Strategies, due to be introduced as part of forthcoming devolution proposals, provide a key opportunity to identify and plan for industrial, logistics and data centre needs on a strategic scale. These plans should be recognising the importance of the sector as a critical economic driver.
Meanwhile, data centres are considered by Government to “underpin almost all economic activity and innovation”. The UK has around 450 data centres adding GVA of £4.7 billion per annum. It is estimated that around 100 new data centres could be built in next 5 years.
The UK’s Compute Roadmap focusses on facilitating new investment through AI Growth Zones. Three have so far been confirmed – Blyth in Northumberland, Cobalt Park in North Tyneside, and Culham, Oxfordshire. The former Teeside Steelworks, Middleborough is expected to be another designation.
Click here to read the latest research and unpack these topics.
We look forward to discussing some of these key themes at the Last Mile Conference on 14th October, where Matt Kinghan is a headline speaker.
Related insights:
-
Iceni launches its 2025 Industrial, Logistics & Data Centre research
07 Oct 25 | Matt Kinghan