‘The Midlands has all the ingredients’ – Q&A with Prologis’ Paul Weston

From AI-powered warehouses to mounting pressure on the UK’s energy infrastructure, the logistics sector is undergoing rapid change. Place Midlands caught up with Paul Weston, regional head of Prologis UK, to discuss why the Midlands remains central to the industry’s future and what is needed to sustain investment and growth.

Q: Why is the Industrial & Logistics sector so important to the UK economy?

The Industrial & Logistics sector is increasingly recognised as foundational to the UK’s economic prosperity. It provides nationally critical infrastructure, drives regional growth, creates employment opportunities and attracts significant international investment. The sector contributes around £175 billion in GVA annually and employs 2.6 million people across the UK. It also supports key growth sectors identified in the Government’s Modern Industrial Strategy, including life sciences and advanced manufacturing, by providing the space and infrastructure businesses need to scale and grow.

Q: As one of the UK’s largest foreign direct investors, what factors do you look for when assessing potential locations?

Three factors are particularly important: occupier demand, infrastructure readiness and the speed of the planning process. The most successful locations tend to score highly across all three. The Midlands, and particularly the so-called ‘Golden Triangle’ that spans parts of the East and West Midlands, continues to attract strong interest because it offers excellent connectivity, a strong labour market and well-established logistics infrastructure.

Q: How have customer priorities changed in recent years?

Customers are increasingly focused on supply chain resilience and operational efficiency. Rising transport and energy costs mean businesses want sites that are strategically located and well connected. The Midlands is uniquely positioned in this regard. For example, 98% of the British population can be reached within a 4.5-hour HGV drivetime from our site at Daventry International Rail Freight Terminal in Northamptonshire, making it an ideal location for national distribution.

Q: Are there differences between the East and West Midlands logistics markets?

There are. In the West Midlands, demand is often driven by connectivity, regional distribution requirements and the area’s strong manufacturing heritage. The East Midlands is more closely associated with national distribution networks and has seen increasing demand for build-to-suit developments, where facilities are designed around a customer’s specific operational needs. While the current geopolitical and economic climate has led some occupiers to take longer over investment decisions, rental levels remain strong across both markets due to continued demand and a relatively limited supply of new space.

Q: What do occupiers expect from modern industrial and logistics facilities?

The expectations have evolved considerably. Customers now want assets that are not only operationally efficient but also adaptable and sustainable. High-quality buildings with EPC A+ ratings and BREEAM Outstanding certifications are increasingly becoming the benchmark. Features such as solar PV, LED lighting and EV charging infrastructure are now commonly requested.

Businesses are also placing greater emphasis on employee wellbeing and attracting talent. That means providing amenities such as green spaces, cycle routes, secure environments and strong transport links. Increasingly, customers are also looking for support with fit-out and workplace design to ensure their facilities maximise productivity, safety and employee satisfaction.

Q: How important is energy infrastructure to the future of the sector?

Energy is rapidly becoming one of the most important considerations in logistics real estate. The growth of automation, artificial intelligence, robotics and electric vehicles is increasing demand for reliable, high-capacity power supplies. At the same time, electricity costs are rising and grid capacity is becoming more constrained.

As an industry, we need to continue innovating to meet these challenges. Developers are increasingly exploring solutions such as on-site solar generation, battery storage and microgrid infrastructure to provide customers with greater energy resilience and support future growth.

Q: What role does public-private collaboration play in supporting growth?

It’s absolutely essential. The government has introduced policies designed to encourage economic growth, but unlocking development at pace requires strong partnerships between the public and private sectors. This is particularly important in areas undergoing Local Government Reorganisation.

While these changes may deliver greater efficiencies in the longer term, there is understandable concern about potential disruption during the transition period. Maintaining close collaboration between developers, local authorities and other stakeholders will help minimise uncertainty and ensure projects continue to move forward.

Q: Looking ahead, what is your outlook for the Midlands?

Despite ongoing economic and political uncertainty, demand for high-quality logistics space in strategic locations remains strong. The Midlands has all the ingredients needed to capitalise on that demand: excellent connectivity, a skilled workforce, strong infrastructure and a proven track record of attracting investment.

By continuing to invest in modern, sustainable developments and fostering effective public-private partnerships, the region can strengthen its position as one of the UK’s most dynamic locations for investment, supporting jobs, economic growth and long-term resilience.