The logistics sector across the Northern Powerhouse region has the potential to achieve transformational growth and create an additional 174,000 jobs by 2050 if key barriers are addressed, according to research by logistics developer Tritax Symmetry and planning and development consultancy Turley. Areas identified as needing ‘substantial improvement’ to achieve
Commercial real estate developer Network Space has become a member of the Northern Powerhouse Partner Programme. The company, established in 1982, has its headquarters in Warrington and engages closely with stakeholder partners across the North. It has recently delivered award-winning and job creating schemes including Mere Grange at St Helens,
The Minister responsible for implementing the “Northern Powerhouse” strategy into this country, Andrew Percy, has claimed that the government is investing as much as it can into the cities of the North and expects to do much more besides. This statement precedes what he will explain to a number of
The government has announced that funding has been set aside for several more Northern Powerhouse projects. Chancellor Philip Hammond confirmed that the government is to provide £556 million to Local Enterprise Partnerships throughout the north through a third round of Growth Deals. The government has also backed four more major
The government has revealed a portfolio of 13 projects to offer £5 billion of opportunities to potential investors from China in the Northern Powerhouse. Chancellor Phillip Hammond presented the schemes to a delegation led by Chinese Vice Premier Ma Kai. Hammond commented: “As we seek to take to take the
BDC 319 : Aug 2024
The logistics sector across the Northern Powerhouse region has the potential to achieve transformational growth and create an additional 174,000 jobs by 2050 if key barriers are addressed, according to research by logistics developer Tritax Symmetry and planning and development consultancy Turley. Areas identified as needing ‘substantial improvement’ to achieve the region’s growth potential include: supply of sites and premises, infrastructure investment and development, closing the North’s skills gap and delivering planning policy reform. The Gross Value Added (GVA) of the logistics sector in the North of England is £15.3 bn a year and is estimated to rise to £20.9bn a year by 2039. The research looked at numerous reports including the 2016 Northern Powerhouse Independent Economic Review which identified the potential growth of the logistics sector under a ‘transformational growth’ scenario. Under this scenario, the sector is identified as having the potential to achieve growth of 174,000 jobs (11%) and £29.6 billion GVA (8%) between 2015 and 2050. Split evenly by year, this equates to an average of 4,970 jobs and £845 million GVA growth per annum, resulting in an estimated annual salary increase of £5.3bn and a total additional 29,190 professional positions. The ‘transformational’ scenario would require in the region of 130 million sq ft of floorspace across 3,000 ha of land. Based on existing ratios of warehouse floorspace to homes, the three regions of the Northern Powerhouse are currently under-delivering logistics floorspace in comparison to housing growth. Commenting on the findings, Matt Claxton planning director at Tritax Symmetry said: “The potential for transformational growth is only achievable if the logistics sector is able to operate effectively and grow so we need to address these issues as a matter of priority. “If these are resolved we have the potential to increase productivity and employment in the North, closing the prosperity gap between it and the rest of England. Logistics is an economic enabling sector, and if this growth is stymied or not supported, then the growth potential of other sectors will likewise be curtailed.” David Diggle, director, planning at Turley continues: “Over the three years to 2018, 15,000 logistics jobs were created in the Northern Powerhouse which is already in line with the ‘transformational scenario’ outlined so it would certainly seem that the Northern Powerhouse is capable of achieving this potential but we need to tackle these areas to ensure we maximise the opportunity for growth.” Speaking about the report’s recommendations Amy Gilham, director, economics at Turley said: “Based on our findings, we have made six key recommendations which will support growth in the logistics sector. The recommendations which include a holistic consideration of logistics space within urban centre development, the quick adoption of strategic spatial plans and ensuring appropriate and adequate allocation of sites for B8 uses, will enable transformational growth of the Northern Powerhouse. “ The Northern Powerhouse region is already home to 25% of the UK’s logistics businesses employing more than 263,000 people. With 12,350 warehouse properties (31% of all properties in England) totalling 538m sq ft (32% of all in England) it has seen an 80% business growth in the five years to 2019. Some of the report’s key findings include: Supply While the North West has the second largest supply of large units of the UK’s regions, the five year average take up of grade A space indicates that there is just 1.45 years left of supply in this area. Speculative development has continued in the region for units over 100,000sqft though generally there is a limited development pipeline of larger units. In Yorkshire and the North East, a record level of take up in 2018 has led to a decline in available supply. In South Yorkshire demand for medium-sized units has increased and activity for larger units has been driven by single transactions such as Amazon at Doncaster iPort. There is a shortage of supply of units under 20,000 sq ft and limited availability of mid-sized units. In West Yorkshire there is supply of around 1.7m sq ft for units over 50,000 sq ft due to continued take up and limited speculative development. The North East is seeing a decline in the supply of large units, particular Grade A, given limited development activity. Skills The logistics industry is made up of many different parts that perform very different functions, and this results in a variety of employment opportunities, both skilled and unskilled, on a full time and part time basis. As the logistics sector becomes increasingly automated there is a need for a greater range of skills within the sector, including IT and engineering. Some steps are already being taken to address the skills gap with developers, occupiers and further/higher education providers working together to develop logistics-specific curriculums as part of the delivery of large new logistics sites. Logistics developers are also working closely with LPAs, local business groups, colleges and skills and training organisations to deliver Training and Employment Management Plans, in order to ensure jobs, training and work experience opportunities are realised for the local area for the lifetime of the development. Leaders of the Northern Powerhouse will need to continue to work with skills and training providers to ensure that the workforce’s skills are well matched to employer requirements. Infrastructure The northern ports are facing a number of challenges around finding suitable land for expansion of existing operations, particularly in relation to port access via road and rail. Digital connectivity (high speed broadband) and power supply are commonly cited by logistics operators as barriers in seeking new sites and premises from which to operate. Improvements to routes which join ports to national transport networks are also required. These include road and rail which at present can be slow and unreliable, further reducing competitiveness. Dedicated air cargo services are currently limited which means that much of the air freight which arrives or departs from the North of England is moved by road. Introduction of dedicated cargo services, or a greater number of long haul passenger services, will help generate
Commercial real estate developer Network Space has become a member of the Northern Powerhouse Partner Programme. The company, established in 1982, has its headquarters in Warrington and engages closely with stakeholder partners across the North. It has recently delivered award-winning and job creating schemes including Mere Grange at St Helens, Vector 31 in South Yorkshire and the Tameside Wellness Centre at Denton, Greater Manchester. Network Space Director Catherine Chilvers is also a Board member of the Local Enterprise Partnership that is advising on built environment issues and economic growth across the Liverpool City Region. The Northern Powerhouse Partnership Programme aims to boost the North’s economy through investment in skills, innovation, transport and culture. Network Space joins almost 400 businesses, civic bodies and charities based across the North of England which have joined the Government-led initiative. Network Space Chairman, Richard Ainscough, said: “Network Space is about delivering exceptional places and spaces for people to work. Over the last decade, we have helped champion and regenerate many urban areas that has struggled to attract inward investment. “These schemes have attracted global names back to the region, as well as providing long term jobs and opportunities. Our values and ambition align perfectly with the Northern Powerhouse and so we are delighted to be part of this wider business initiative.” The Northern Powerhouse is currently building on a £3.4bn Local Growth Fund investment to create world-class places where people want to live, work, visit and invest. It aims to boosting the local economy by investing in skills, innovation, transport and culture, as well as devolving significant powers and budgets to directly elected mayors to ensure decisions in the North are made by the North.
The Minister responsible for implementing the “Northern Powerhouse” strategy into this country, Andrew Percy, has claimed that the government is investing as much as it can into the cities of the North and expects to do much more besides. This statement precedes what he will explain to a number of leading businessmen and investors in the country at the next Northern Powerhouse Conference, which is planned to be held over two days in Manchester Central from the 21st-22nd of this month of February. With the intention of drawing the attention of over 3,000 representatives of different countries looking to invest and promote the growth and prosperity of the area, this suggests a great deal of confidence in Andrew Percy that the event will be a successful one and will ensure that the future of the “Northern Powerhouse” is in safe hands. Indeed, in a statement that he made a few days ago, Andrew Percy said that with an area valued at £316 billion (and this was back in 2015, imagine he seems to say what it will be now!) the North is very much set and ready to experience an even greater amount of investment and growth into its economy than it has ever experienced before. Andrew Percy is confident that with the government’s support and with the help of such international corporations looking to invest into the area such as Nissan as well as Lufthansa the dreams of a “Northern Powerhouse” are certain to be achieved. Despite the worries of Britain’s exit from the European Union and the maneuvers of a Tory government that is spreading social inequality in the country that is harkening back to the dark days of social desperation that were rife during the Margaret Thatcher reign, Andrew Percy remains evermore confident that the plans to erect a “Northern Powerhouse” are still well and truly capable of being achieved. I have the feeling I’m not in Kansas anymore.
The government has announced that funding has been set aside for several more Northern Powerhouse projects. Chancellor Philip Hammond confirmed that the government is to provide £556 million to Local Enterprise Partnerships throughout the north through a third round of Growth Deals. The government has also backed four more major schemes through its Local Majors Fund: the Warrington Waterfront Western Link, the Sheffield Supertram renewal, the Tees Valley east-west connection project and the A1079/A164 Jocks Lodge Junction in East Riding. All four of these projects have successfully bid for business case development funding. Along with these, the M6 North West quadrant of Manchester and the Pennines A66 improvement works will also be included as part of the government’s latest Roads Investment Strategy, while two junctions of the A69 will be improved using pinch-point funding. The government is also set to carry on developing options for Northern Powerhouse Rail along with Transport for the North, with the next steps for the scheme set to be revealed in 2017. Plans were also confirmed for the £400 million Northern Powerhouse Investment Fund, which will invest in SMEs throughout the north and will make its first investments at the beginning of next year. Away from the transport sector, the chancellor backed the restoration of the Grade I listed Wentworth Woodhouse country house near Rotherham with £7.6 million of funding, subject to business case approval. Yorkshire and the North East are being “left behind” their Northern Powerhouse neighbours in the race to fund major projects, council leaders have warned. More than £41bn of infrastructure spending is planned in the North West over the next five years, compared to £15bn in Yorkshire and the North East. Council leaders want the Autumn Statement to tackle the imbalance. The Treasury said the figures are “not a fair reflection of the investment”. A spokesman said 550 infrastructure projects have been created in the North since 2010.
The government has revealed a portfolio of 13 projects to offer £5 billion of opportunities to potential investors from China in the Northern Powerhouse. Chancellor Phillip Hammond presented the schemes to a delegation led by Chinese Vice Premier Ma Kai. Hammond commented: “As we seek to take to take the golden era of UK China relations to the next step, we have a major opportunity to open up investment opportunities across the Northern Powerhouse. “This portfolio, opening up billions of pounds of investment ready projects to Chinese investors, will support our work to grow and create jobs across the north, as well as underpin our ambitions to bring world class infrastructure to every corner of Britain.” The Department for International Trade has also confirmed that they are working with 15 investors from China on property development and infrastructure schemes in the North of England. Some of the projects within the Northern Powerhouse Investment Portfolio are: AeroCentre, Doncaster: working with Sheffield Airport in the next phase of development to create new offices, logistic units and aviation hangars. Future Carrington, Trafford: opportunities for investment in a large scale residential and employment development in a prime location, providing over 14,000 new jobs and contributing an additional £720m GVA per annum. Kampus, Manchester: an exciting opportunity to create new city centre apartments and retail including bars, cafes and shops. Kirkstall Forge, Leeds: an opportunity to develop a new neighbourhood of 1,050 new homes, office space, retail, leisure and community space. Liverpool Waters, Liverpool: this offers sale of land to develop a full range of uses, as part of an overall £5 billion project which transform the city’s northern docks. MediaCityUK, Salford, Greater Manchester: home to the BBC, ITV and more than 250 smaller creative and digital businesses, an investment would double the size of MediaCityUK, creating studio, office, residential and retail space.
