Industrial sector poised for growth

Glenigan project data reveals that the Industrial sector, a bright spot for construction over the last two years, is poised for further growth in 2016.

The value of projects starting on site rose 5% last year, building on a 49% in starts during 2014.

Demand for industrial premises is being fuelled by the need for more logistics space from retailers as on-line sales account for a growing proportion of consumer purchases.

Whilst UK economic growth has slowed in recent months, consumers’ remain confident. The latest GfK survey found UK consumer morale rose for a second month in a row in January to hit its highest level since last summer. In addition Glenigan research has identified a burgeoning development pipeline, with the value of industrial projects securing detailed planning approval last year rising 41%. Near term the impending EU referendum may prompt investors to delay decision, but rising consumer spending and the strengthening development pipeline point to sustained medium term once these political uncertainties are resolved.