The I&L Bottleneck – Why the UK’s Growth Sectors are Running Out of Room
While much of the pre-UKREiiF buzz centers on innovation districts and creative hubs, a recent landmark report by Savills and the British Property Federation reminds us of a hard truth: without the sheds, there is no shift.
The report explores the symbiotic relationship between Industrial & Logistics and the IS-8 sectors—the eight pillars of the UK’s growth strategy, including Life Sciences, Advanced Manufacturing, and Clean Energy. As we prepare for the conversations in Leeds, three core findings from this research should be at the top of every developer’s and policymaker’s agenda.
The Cost of Inaction: A £9.7bn GVA Deficit
The most staggering figure in the report is the £9.7bn loss in Gross Value Added due to suppressed demand between 2010 and 2024. To put that in perspective, that is the equivalent economic output of an entire city—roughly the size of Southampton or Derby—simply vanishing because we lacked the physical space to house growing businesses.
For the IS-8 sectors to thrive, they require high-spec, well-located I&L space. When supply fails, the whole economy feels the friction.
A New Planning Paradigm
The report makes a powerful case for advocacy: the creation of a National Supply Chain Infrastructure Framework.
The Goal: To sit alongside the NPPF and provide a dedicated, statutory weight to I&L developments.
The Benefit: This isn't just about building more; it’s about building better—driving the creation of decarbonised, resilient supply chains that can withstand global shocks.
The 2030 Cliff Edge: The EPC Challenge
We are rapidly approaching a regulatory unlettable crisis. Current records suggest that 73% of I&L floorspace currently sits below an EPC rating of B. Under the government’s 2030 MEES requirements, three-quarters of our existing stock could become legally unlettable in just four years. This isn't just a landlord's problem; it's a national infrastructure risk.
Join the Conversation at UKREiiF 2026
Can the UK bridge a £9.7bn GVA gap without a radical shift in planning?
We believe the National Supply Chain Infrastructure Framework is the missing piece of the puzzle.
At UKREiiF 2026, we’ll be joining the debate with industry leaders to figure out how we move from suppressed demand to sustainable delivery.
Connect with us on LinkedIn for live updates from the I&L sessions at the Royal Armouries, or message us to grab a coffee on the dockside.