Member Article

Lack of building curbing Midlands manufacturing potential

A lack of good industrial buildings in the Midlands is threatening the revival of manufacturing in the region, according to a real estate expert.

David Bink, industrial partner at the Birmingham branch of global real estate firm Cushman & Wakefield believes that there is only a years supply of good quality industrial buildings in the area, and only nine months worth across the West Midlands.

Speaking to the Birmingham Post, he commented: “It’s a real problem – demand is outstripping supply for good quality industrial buildings and there is going to be a real shortfall between now and 2014.

“Choice is already very limited – it’s great for landlords, however, as inquiries are being channelled towards the few good buildings which are available.”

One of the biggest issues for manufacturers is when they pick up new contracts, but struggle to find the necessary premises. In these situations, companies often failed to leave themselves enough time to find an adequate alternative to their property needs.

If businesses cannot find suitable exciting buildings, the alternative is to have something built to suit their needs. However, this can take a minimum of 12 months to identify a suitable site, gain planning permission and complete construction.

Automotive and aviation firms who have benefited from the success of Jaguar Land Rover are finding it especially difficult to find the right sort of properties.

He continued: “There is going to be a drag on growth because those companies winning new contracts in these sectors won’t be able to find the buildings to operate from, and that means they won’t be able to generate the revenue for growth, or create jobs in the short term.

“There is a perception that the property market is on its knees – but times have changed, and that is not the case in the manufacturing and logistics sector.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .