Logistics is Moving North in the East Midlands – to Nottinghamshire. And Here’s Why…

April 23, 2015 10:41 am
Castlewood Business Park at M1 J28 – ideally located for logistics businesses

Castlewood Business Park at M1 J28 – ideally located for logistics businesses

England’s logistics ‘golden triangle’, centred on the counties of Northamptonshire, Warwickshire and Leicestershire, has long been regarded as the sector’s centre of gravity in the UK. But industrial property specialists are now talking about a ‘northward migration’ of logistics and distribution businesses, along the M1 corridor to Nottinghamshire.

So what’s driving this trend? And what are Nottinghamshire’s specific benefits for logistics businesses? Here are some of the answers.

Benefit #1: Logistics Properties Cost Less in Nottinghamshire

According to 2014 industry research, prime industrial and distribution sites in Ashfield and Mansfield, Nottinghamshire, can deliver savings of over 20% on rent costs versus comparable sites in the golden triangle. [3] That’s an indicative saving of £250,000 per year on a 200k sq ft distribution unit.

Prime Rents: 100k – 250k sq ft [1]

Prime Rents: 100k - 250k sq ft [1]

Benefit #2: Available Logistics Sites

In simple terms, Nottinghamshire offers plenty of available, motorway-linked logistics sites, many of which are ‘ready to go’ for immediate development. Of six ‘key East Midlands development sites’ highlighted by Lambert Smith Hampton in 2014 [2], two were in Ashfield and Mansfield, Nottinghamshire. A further two were in the Nottingham/Derby area and only two were in the ‘golden triangle’. According to Ashfield and Mansfield district councils, no less than 400 acres of industrial and distribution land is currently available for development in the area.

Benefit #3: An Available, Low-Cost Logistics Workforce

Nottinghamshire offers advantages to logistics and distribution businesses both in terms of workforce availability and costs.

Recent media reports have highlighted logistics sector labour shortages in the golden triangle, including warehouse operatives, qualified LGV drivers, [3] and fork lift truck drivers. In contrast, Ashfield and Mansfield, Nottinghamshire, offers a significantly higher percentage of workers in the key ‘Elementary Occupations’ category than the East Midlands average (14.3% versus 11.8%), and a larger overall available workforce as measured by unemployment (7.8% versus 6.5%). [4]

Perhaps unsurprisingly, this larger available labour force is reflected in significantly lower wage rates across the board. [5]

Wage Costs

Benefit #4: Excellent Transport Connectivity

Selecting a more northerly logistics location doesn’t mean compromising on transport connectivity. Businesses locating in Ashfield and Mansfield, Nottinghamshire (M1 junction 28) benefit from north-south connectivity via the M1 and east-west links via the A38 trunk road. This means they can access all of England’s major population centres, airports and deep sea ports within an HGV drive of less than 3 ½ hours. [6]

The Conclusion: Better for the Bottom Line

In conclusion, logistics businesses are moving to Nottinghamshire because they’re finding available sites in an optimal, central-England location, as well as an available workforce. And what’s more, they’re making significant cost savings in the process.

 

Find Out More
Contact Invest Ashfield and Mansfield to find out more about the benefits of establishing your logistics operation in Ashfield and Mansfield, Nottinghamshire, UK.

Sources:
[1] Hatmill: Review of available distribution locations on the M1/A1 corridor, 2014
[2] LSH East Midlands Industrial and Logistics Market Review, 2014
[3] Skills for Logistics
[4] ONS Annual Population Survey, 2014, Employment (July 2013-June 2014)
[5] ONS Annual Survey of Hours and Earnings (Full Time Workers, Workplace Analysis, Mansfield data), 2014
[6] Google Maps, 2015 (Drive times adjusted for max. 56mph)

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