Industrial construction set for two-year rebound

The industrial construction sector is set to undergo a strong bounce-back over the next two years.

A decline in manufacturing work had curbed industrial construction activity in the sector during 2025, but Glenigan’s construction industry research suggests the value of project starts at an underlying level (below £100 million) should grow 12% this year. This is predicted to increase further into 2027 with an annual increase of 13%.

Glenigan economics director Allan Wilén comments: “Industrial construction growth over the next two years is expected to be driven by a recovery in manufacturing projects and continued growth in warehousing starts. The rise of online retailing is likely to increase demand for logistics and light industrial space, supporting investment in both larger strategic distribution centres and smaller local facilities.

The industrial and logistics sector is also set to benefit from the new National Planning Policy Framework, which requires local authorities to identify strategic sites for local and inward investment, including suitable locations for gigafactories, freight hubs, and logistics facilities.”

Planning pipeline

The North West, West Midlands, and East of England are where the largest amount of industrial construction work at an underlying level has been granted planning permission over the past two years.

The North West overtook the West Midlands as the region with the largest number of approvals last year. This work is now moving through the construction cycle.

Work is scheduled to begin on 250 industrial construction schemes in the North West in the next year, such as further phases at Tritax’s Symmetry Park in Wigan (pictured), where a start is scheduled for work in May (Project ID: 18295983).

In the West Midlands, there are 163 industrial construction projects at an underlying level with planning permission and due to start construction in the next year. This ranges from the £30 million Indurent Park at Longbridge in Birmingham (Project ID: 25206406) to more phases at Henry Boot Development’s ongoing SPARK industrial scheme in Walsall (Project ID: 25195962).

In the East of England, 247 industrial construction projects at an underlying level are due to begin construction in the forthcoming 12 months. These range from Kier’s £7.9 million Trade City Maple Cross development in Hertfordshire, where a start is imminent (Project ID: 24359039), to a £19.9 million extension to a FedEx warehouse at Stansted Airport, where work will commence in September (Project ID: 25057527).

Major projects

Glenigan’s research has also identified 100 industrial construction projects valued at £100 million or more due to start in the coming year.

Many are still moving through the planning system, such as Segro’s £159.4 million Whitley South scheme at Baginton in Warwickshire (Project ID: 25345584). Although a formal decision has not been issued, plans were approved at committee level, and construction could start this summer.

Tritax submitted a planning application to build a £113.8 million warehouse and office in Rugby before Christmas. If approved, construction could also begin on site this summer (Project ID: 25540164).

Future opportunities

Major industrial clients such as Tritax, Prologis, Indurent, Panattoni, Henry Boot, Peel Holdings, and Chancerygate all feature in Glenigan’s rankings of the industry’s Top 100 clients.

With a strong pipeline of work also moving through the planning system, plenty more opportunities are coming up in the industrial sector to bolster future workload for the industry.