Strong appetite for investment
Proposed investment in land and property from manufacturing companies continues to grow as planning application floor space for factory construction increased by 50% in 2014 and is on track for a further 40% growth in 2015, according to the latest report from Barbour ABI, a provider of construction data for the Office for National Statistics and the Government
The report shows significant growth for factory planned
floorspace from March 2014 to March 2015. Total planned floorspace in the manufacturing sector was 2.2 million m2 in 2014.
In the first four months of 2015, planning applications have totalled 1.1 million m2 which, if
continued, would mean total planned floor space will be in excess of 3 million m2 for the year.
Despite recent signs of a slowdown in manufacturing through both GDP and Markit PMI surveys,
investment intentions from manufacturers in property appears to remain strong. Planning
applications for factory floor space is an indication of the longer term optimism of manufacturers,
both in terms of increasing and improving factors of production.
investment intentions from manufacturers in property appears to remain strong. Planning
applications for factory floor space is an indication of the longer term optimism of manufacturers,
both in terms of increasing and improving factors of production.
Michael Dall, lead economist at Barbour ABI commented: “With planning applications continuing to
rise, businesses and investors appear to be preparing and planning long term financial commitments
within the industry.
“Despite the signs of a recent slowdown, the capacity of the UK manufacturing sector is set to
increase, whether this fully transfers into increased output remains to be seen but it certainly shows
that an appetite for investment remains strong.”
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