Where the Future of Logistics Will Be Won or Lost
By Kate Bedson, Senior Development Director, SEGRO
UK logistics is at a tipping point. The last few years have shown just how much the sector matters, but the decisions being made now about where to build, expand or consolidate will decide who’s ahead in ten years’ time. And those decisions are about far more than postcodes or floor space.
The logistics sector has shifted from something you barely noticed to something you can’t imagine life without. Same-day deliveries, critical medical supplies, parts arriving just in time to keep production lines moving – none of it happens without the right places to store, sort and move goods. And the right places are getting harder to find.
Demand is diversifying, and while E-commerce isn’t disappearing, it is evolving into more complex models. Smaller businesses are looking for shared fulfilment hubs so they can still grow with the limited funds they have available. 3PLs are adopting more AI and automation to drive efficiency and customer service. Healthcare and life sciences need more specialised, flexible and temperature-controlled spaces. You can’t meet that variety with a one-size-fits-all warehouse.
While automation and digitalisation are transforming warehouse operations, human capability is still central to success of the logistics sector. If you can’t attract and keep skilled employees, the rest falls apart. The best facilities don’t just operate efficiently, they feel like places people want to work in. That means thinking about amenities, accessibility and how the site fits into the surrounding community.
Then there’s the infrastructure question - a decisive factor in location choice. Power supply is climbing to the top of everyone’s needs, not just for vehicle charging but for automation and whatever’s coming next. Occupiers are increasingly scrutinising grid capacity, transport connectivity and local authority partnerships before committing to space.
And of course, sustainability is no longer a buzz word. Solar electricity generation, EV charging infrastructure and BREEAM-rated buildings are now signals of commercial competitiveness that can influence investors, employees and customers. Low-carbon operations are becoming a fundamental part of winning contracts and protecting margins.
In a world where so much feels uncertain, the choice of where to base operations might be one of the few things a logistics leader can truly control. Locations that combine scale with speed to market, strong regional workforce catchments, sustainable design, relationships with a local authority that enable success not disable it, and future-ready infrastructure will be the ones that define the next chapter of UK logistics.
Get it right and you set yourself up for a decade of resilience and opportunity. The only real question is who’s ready to make that call before the best options are gone.