Industrial areas are critical to ensuring that our cities are productive, innovative and prosperous. While the value of industrial areas is often examined through an economic lens, these land uses also contribute to the health and wellbeing of the communities in which they are located.
While industrial areas are crucial for the economy, they are also being seen as sites which can create and support social value. Social value is defined as places, infrastructure, and buildings that can generate sustainable net-positive social, economic, and environmental outcomes so that the wellbeing, quality of life and resilience of individuals, families, communities, and cities are improved. Here, Amy Lawton from Urbis’ social planning team explores the social value of industrial areas with the New South Wales (NSW) context, although noting that these key learnings can be applied to other industrial areas across Australia.
Understanding – and pursuing – the opportunity
The industrial and logistics sector is not only critical for jobs, but also for its role in powering supply chains and supporting the growth of other important sectors such as housing. Industrial and logistical activities have also become increasingly important in the post-pandemic world, servicing populations that largely buy goods online and then expect them to be shipped and delivered on demand.
Cities that are unable to deliver industrial lands face significant consequences, such as fewer local job opportunities, longer worker commute times and growing congestion, lower worker wellbeing and quality of life, and more costly delivery of goods and services.
Australian cities such as Sydney have historically faced the challenge of retaining industrial lands and preventing them from being rezoned into other land uses (such as residential). While recent policies (such as the NSW Industrial Policy and the NSW Industrial Lands Action Plan) highlight the ongoing need to plan for and retain industrial lands, Sydney still faces a critical shortage of key industrial lands across the city region. This shortage is slowly being addressed with the investment and release of key industrial lands, such as those around the Western Sydney Aerotropolis, however its delivery is still being impacted by factors such as rental costs, infrastructure delays, rigid planning systems and frameworks, and conflicting stakeholder advice.
Despite these challenges, there is an increasing recognition from the property and infrastructure sector that industrial developments have the potential to generate social value. Previous Urbis projects such as 311 South Street Marsden Park and Toyota Spares Warehouse and Distribution Centre show that these sites can provide a greater mix of complementary onsite uses that support and improve social outcomes for both workers and the broader community. There is an opportunity for designers, planners and developers alike to reimagine and promote industrial lands as not just places of work, but as dynamic hubs that enhance our quality of life, health and wellbeing.
Industrial areas are hubs for job and employment creation. The Australian Department of Employment and Workplace Relations estimates that, for the manufacturing industry in Australia, jobs are expected to grow from 881,000 in May 2023 to 1.02 million by May 2033.
How industrial areas create social value
Developers and industrial landowners should consider the social value of industrial areas as it can lead to maximising long-term sustained commercial value – in other words, it is inherently good for business. Industrial areas have the potential to generate social value in several ways:
Job and employment creation: Industrial areas can provide higher value, higher paying job opportunities (such as robotics and advanced manufacturing) to the local communities where they are located. The Australian Department of Employment and Workplace Relations estimates that for the manufacturing industry alone, jobs are expected to grow from 881,000 in May 2023 to 1.02 million by May 2033. These precincts also provide opportunities for more localised operations, as well as support social procurement mechanisms that ensure marginalised groups (such as Indigenous communities) have access to apprenticeship, training and upskilling opportunities.
Broader economic and wealth creation: Industrial areas have become essential to our way of life which relies on the 24/7 global economy. These sites, particularly those located close to ports and airports, can support broader economic and wealth creation by bolstering other sectors and connecting to local, national and international supply chains (such as retail, hospitality, agricultural, medical/health and aviation). Major industrial developments such as the Western Sydney Aerotropolis are expected to create over 200,000 jobs by 2056 across the Western Sydney Parkland City and Aerotropolis precincts by concentrating on high-skill sectors like aerospace, defence, manufacturing, healthcare and agribusiness.
Supporting worker amenity, lifestyle and wellbeing: The co-location of industrial areas near residential areas provides jobs ‘closer to home’ and has positive impacts on worker health and wellbeing by reducing commute times. Large multinational corporations such as Woolworths have been known to embrace flexible and innovative industrial facility designs to ensure the co-location and connection between office and warehouse workers. These facilities where possible, are also often incorporating other land use types – such as retail, community services and facilities (e.g. neighbourhood centres, childcare facilities, gyms), open spaces, and walking and cycling networks to support the quality of life, wellbeing and social connectiveness of workers and visitors. The activation of these areas also improves safety and discourages crime.
Celebrating local Aboriginal culture and history: Developers of industrial sites are increasingly recognising and enhancing local Aboriginal history and culture through Connecting with Country processes and initiatives. Local Aboriginal history and culture is being celebrated on site through landscape, public art, materiality, engagement processes, and heritage preservation. Examples such as the LOGOS Qantas public art installation show how significant public art works can be integrated into the facades of the new industrial and office buildings, providing a unique opportunity for local Aboriginal artists to create a visually engaging ‘Welcome to Sydney’ with integrated designs informed by First Nations consultation and knowledge.
Supporting arts and culture: Industrial areas have been known to provide relatively cheaper spaces for contemporary artists and creatives, offering workshop spaces for their activities. Examples such as Monster Mouse Studios in Marrickville show how warehouse style spaces can support these types of activities. Providing affordable and flexible spaces is key to ensuring that these activities can occur within industrial settings.
Fostering community engagement and ownership: Industrial areas are providing governance mechanisms and structures for workers, businesses and local communities to have a say in how industrial areas function, operate and evolve. Examples such as business associations and Aerotropolis Community Commissioner models are some of the ways that are being used to enhance community participation through the development, construction and operation of these precincts.
Modern industrial facilities are equipped with a range of amenities to support staff wellbeing and lifestyle.
How developers and landowners can unlock the social value of industrial areas
Developers and landowners can do a number of things to ensure the social value of their industrial sites are optimised. This includes:
Work with architects and urban designers to design multipurpose industrial spaces that support worker and visitor amenity and wellbeing.
Ensure that social dimensions are adequately integrated within the sustainability strategies developed for industrial areas.
Consider and implement the mitigation measures and recommendations outlined in statutory and strategic planning advice, such as social impact assessments.
Develop partnerships with key stakeholders (such as universities, businesses and government bodies) to create and maximise social value opportunities.
Ensure that the local community continue to be engaged in the design, planning and development of industrial areas.
Urbis is at the forefront of providing clients with expert advice nationwide to maximise the potential of industrial projects and assets. Get in touch to discuss how Urbis can support you to unlock the social value of your industrial developments.
