The UK economy has been rife with uncertainty over its stability despite a 1.2 per cent p.a. forecast for 2014. The cost of living is continuously becoming an issue with rental costs rising 3.9 per cent in the UK and Wales while wages are increasing by a mere 0.8 per cent creating speculation that pubic spend will decline further. However, despite the gloom professional investors are urging people to invest in brick and mortar with property funds yielding 4.5 per cent.
Property investment can be particularly attractive as borrowing costs are declining and there is a comfort in obtaining a steady alternative income.
The property market continues to be monopolised by geography with London and the South East proving popular compared to the rest of the country. The question is what type of property should be invested in?
According to MHW Magazine, industrial units could hold the key to overcoming the UK’s economic gloom. In a recent account, experts believed that investment and expansion in the industrial sector will bring a much-needed revival to the national economy.
Phil Hodgkinson, manager of Club Workspace, a co-working offering from one of the leading providers of industrial units in London, Workspace, said: “Export in Britain was at an all time high in the Victorian age with 20% of the world’s manufacturing output located in Britain. Today it is as low as 2%, which is why many experts believe that investing in British manufactured goods can help breathe new life into the sector.
“In order for the country to expand its manufacturing sector, industrial units need to be obtained, looked after and offer companies a modern space for them to upgrade and expand.”
Total Construction Supplies, who specialise in reinforcement mesh for the construction industry will be moving three units to a new 26,000 sq ft unit at Pinnacle Point on Boundary Industrial Estate, Fordhouses by the end of June.
ACE (Advanced Chemical Etching) has also been seeing an increase in demand with the company investing £1 million this year to double its manufacturing capacity. They have acquired adjacent industrial units to provide themselves with the space needed to rearrange internal material flows which will inevitably lead to increased efficiency.
These are just two examples where these spaces have become irreplaceable to the growth of business operating in the UK.
Economic recovery will not happen overnight but that doesn’t mean that investors should cease investing. The key to building a successful portfolio is to look out for trends and strategically predict the spaces and locations that will be in demand in the foreseeable future.
‘Industrial units: Should we be investing?’ was written by Phllip Hodgkinson, manager of Club Workspace, one of the fastest-growing networks of creative co-working business clubs across London.