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Whilst excess manufacturing capacity will remain a disincentive for investment in new industrial buildings near term, the medium term outlook for 2010 and 2011 is potentially more encouraging, according to Glenigan.

On the upside UK manufacturers should, in time, begin to benefit from improved competiveness following Sterling’s recent sharp falls against the Euro and the US Dollar.

This should help temper the impact of the general weakening in UK and global economic growth. In addition the current expansion of UK port facilities should act as a spur to develop accompanying distribution facilities.

Similarly, planned investment to remove freight bottlenecks on the rail network, coupled with growing road congestion, will encourage investment in new rail-connected distribution facilities.

Top contractors and clients in industrial
Industrial starts

Source: Glenigan