Central and local government 'must better recognise' the importance of the industrial and logistics sector, the property industry has stated.

The British Property Federation's (BPF) 'Delivering the Goods' report reveals the logistics sector contributes £100 billion per year to the economy.

With the industrial sector competing for land from higher value uses such as housing, the BPF added it wants to see government departments encourage the development of both logistics and industrial zones.

In addition, the Foundation said it would like councils to ensure industrial land is given 'adequate provision' in Local Plans, along with coordinated infrastructure planning to ensure the delivery of road, rail, port, energy and digital connectivity.

Other finds in the report include:

• The logistics sector directly supports a minimum of 56,000 businesses.


• Employment in the logistics sector is estimated as high as 2.2 million, or 8% of the UK's workforce.

• Employment in warehousing operations increased by 40% between 2009 and 2013.

• Average salaries in the logistics sector (£28,000) are above the national average (£20,000).

• The average salary has grown at a higher rate (7%) over the last five years than the national average (3%).

• Only around 15% of employees in the sector work part time, compared to an average of 32% in other sectors.

Melanie Leech, Chief Executive of the BPF, said: "The logistics sector can often be overlooked, and few realise what a vital part it plays in our everyday lives. Delivering the enormous amount of online orders placed on Black Friday, for example, would not be possible without the logistics sector. 

"But the provision of industrial land does more than just ensure that your Christmas shopping arrives on time – it also creates skilled jobs and delivers significant economic growth. Local authorities are under a lot of pressure to deliver housing, and while this is important a balanced approach must be taken. This report shows that there is actually a lot for them to gain from welcoming a sector that provides jobs for the local community."

Gareth Osborn, Chair of the BPF Industrial Committee and Head of Logistics at SEGRO, added: "With a shortage of industrial land, coupled with an increasing need for housebuilding, the industry faces great challenges when it comes to acquiring sites as well as securing planning permission for industrial uses.

"This report highlights the vital role the sector plays in our everyday life, as well demonstrating its contribution to the wider national economy."

(LM)