Why South Wales offers a unique opportunity for industrial development
Heavy industry and manufacturing has historically dominated South Wales, however, recent structural change in retail, alongside the growth of high tech engineering and specialist manufacturing sectors, has meant a new demand dynamic has developed.
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Cardiff and South Wales make a suitable location to service the delivery of goods for both shop stock replenishment and customer order for several reasons.
Land values
Land values are a low comparative to other major centres of the UK. Cardiff and the South Wales area benefit from fast road links to the Midlands, South West England and the M4 into London.
Transport costs
The removal of the Severn Bridge toll in 2018 led to a reduction of transport costs from Cardiff to Bristol and other markets along the M4 corridor. As a result, it became cost effective for operators to locate in the Cardiff/South East Wales region.
Infrastructure upgrades
In addition, extra investment will provide operators with better accessibility across Wales and other UK cities. The Welsh Government has invested £800 million in infrastructure upgrades to the Heart of the Valleys road, due to be completed at the end of the year.
Changing retail landscape
Compared to other cities, Cardiff has a relatively immature online retail market, with consumers preferring to buy in-store. However, this is now changing. Amazon recently opened a popup “Clicks and Mortar” store in St David’s Shopping Centre in Cardiff, offering local consumers the opportunity to connect with some of Amazon’s independent traders.
Rising online sales
Cardiff’s young and affluent urban population is growing rapidly, and online retail spending is expected to increase as will the expectations of consumers, consequently leading to more demand for urban logistics facilities such as cross-docking warehouses and parcel carrier hubs across Cardiff and South East Wales.