Bridging the Gap: Meeting Property Needs in Scotland’s High Value Manufacturing Sector
Article by Charlotte Ballantyne, Research Associate at Ryden.
Innovation Shawfield, Shawfield, Rutherglen
Scotland’s high-value manufacturing sector is a critical component of the nation’s economy. Historically, Scotland has had a strong manufacturing base and this intrinsic thread now also runs through many areas of future economic opportunity including renewable energy, life sciences, digital automation and space.
In 2023, research conducted by Ryden on behalf of Scottish Enterprise highlighted a key obstacle in maximising this potential economic growth: a clear shortage of suitable industrial land and property.
Scotland’s existing industrial property stock, totalling 167 million sq. ft., is often characterised by older buildings that may suffer from physical, functional, or environmental obsolescence. This lack of modern, high-quality space is a concern for high-value manufacturers seeking efficient premises.
Furthermore, the availability of suitable land for development is limited, particularly in the Central Belt. With the development market facing challenges of rising costs and reduced capital values, it is difficult for developers to provide the larger, modern, and environmentally efficient premises that high-value manufacturers require.
Ryden’s report emphasises that unsupported property development is unlikely to meet the growing demands of high-value manufacturers, resulting in market failure in providing the necessary industrial infrastructure to support the sector’s expansion. With the sector currently employing c. 170,000 people and contributing £12.8 billion in GVA a clear case for intervention was demonstrated.
As a result, in 2024, Scottish Enterprise launched its £35 million Manufacturing Property Challenge Programme in 2024. The program aims to stimulate the development of 1,000,000 sq. ft. of new industrial space and enhance Scotland’s attractiveness to inward investors. The first call for the Manufacturing Property Challenge Programme will make £15 million available for developers.
Positive steps to address market failure have also been undertaken by Clyde Gateway URC which has remediated land and developed units at Clyde Gateway East and Shawfield. Clyde Gateway’s initial investment in Clyde Gateway East has helped bring confidence to the market and attracted private sector developers to the area. This has not only provided suitable accommodation for high value manufacturers such as Torishima and Glacier Energy but has also brought good quality jobs to a regeneration area. The new units at Shawfield Innovation have been supported by the Scottish Enterprise high value manufacturing fund. On the west side of the city the Advanced Manufacturing Innovation District Scotland (AMIDS) is also being prepared for private investment around the National Manufacturing Institute Scotland and the Medicines Manufacturing Innovation Centre. Further major economic initiatives around Scotland such as Green Freeports based around the Firth of Forth and the Cromarty Firth areas and the Investment Zones in Glasgow City Region and the North East, potentially around specific industry needs.
The drive to strengthen Scotland’s high-value manufacturing sector is a long-term endeavour. However, by responding to the property challenges identified and closer partnership working between the public and private sector in supporting strategic developments, Scotland is building a foundation for future prosperity. These combined efforts aim to create a dynamic and competitive manufacturing landscape that will benefit the Scottish economy for years to come.
You can see all of the available commercial property from Ryden on NovaLoca here.
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