Scottish Enterprise is launching a new £35 million Manufacturing Property Challenge Programme to develop 1,000,000 sq. ft. of new industrial space, aiming to boost innovation and attract inward investment to Scotland.

The programme’s first call will allocate £15 million for developers, offering a combination of funding and support over five years.

As part of its refocused strategy for economic transformation, this is the economic development agency’s first targeted intervention. The full programme aims to create manufacturing accommodation equivalent to 14 football pitches and leverage £175 million of private sector investment into the economy.

Rhona Allison, managing director of productivity and business growth at Scottish Enterprise, said: “Scotland has a strong manufacturing base across many sectors including renewable energy, life sciences, and food and drink. If we want businesses to keep growing as well as new companies to invest here, we need the right infrastructure.

“From our research and feedback from companies, we know there is limited availability of high-quality space for high-value manufacturing in Scotland. I encourage property developers to work with us to create more modern, productive, sustainable premises that are vital for Scotland’s future economic growth.

“This programme is one of the key building blocks of our capital investment mission and supports our ambition to stimulate investment and create more world-class facilities for Scottish manufacturers, which in turn will drive economic growth and increase productivity.”

Scotland’s manufacturing sector employs around 170,000 people and accounts for over 50% of the country’s international exports.

Deputy first minister and cabinet secretary for economy and gaelic, Kate Forbes, stated: “This programme will kickstart manufacturing opportunities in central and North East Scotland to secure new investment and boost our economic growth.

“EY’s Attractiveness Survey published last week found that Scotland attracted 45 manufacturing inward investment projects in 2023, ten more than the previous year.

“Manufacturing contributes a staggering £17 billion to Scotland’s economy, and we are developing the Advanced Manufacturing Innovation District Scotland to attract more manufacturing inward investment projects, which will create more high-value jobs.”

Prior to launching the programme, Scottish Enterprise conducted research and found a shortage of modern, good-quality, mid-size buildings (>15,000 sq. ft.), particularly in areas like Glasgow and Edinburgh. Additionally, industrial accommodation in Scotland is limited, with many buildings being sub-optimal for modern industrial processes.

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Cost was identified as a significant barrier to speculative development. The programme from Scottish Enterprise aims to address this by providing funding and support to initiate projects.

The first call of the Scottish Enterprise Manufacturing Property Challenge Programme invites industrial property developers to bid for a share of £15 million to support the construction of at least 15,000 sq. ft. of new premises or the refurbishment of existing premises within Scottish Enterprise’s locality.

Applications for the programme are open until 18 September 2024. Interested parties can find more information about the Manufacturing Property Challenge Programme on the Scottish Enterprise website.