The decision of where to base a warehouse is one of the most important choices a business can make. The right site can unlock growth, reduce costs and create resilience, while the wrong one can drain resources and hinder service. In the UK, the question is not whether to be in London, the Midlands or the North, but rather which region matches the flows of supply and demand, the availability of people and power, and the wider ambitions of the business.
Balancing Supply and Demand
At its heart, warehouse location is about flows. Businesses must balance inbound supply — whether that is imports through ports, goods arriving by air or domestic production such as food from farms — with outbound demand from customers. London and the South East dominate consumption, housing a large, affluent population with high expectations for rapid delivery. Yet much of the UK’s manufacturing base and agriculture sits in the Midlands and the North.
A company shipping imported goods may prioritise proximity to ports like Felixstowe or Southampton, while a food manufacturer could be better served by locating near the fields of Lincolnshire or Yorkshire. Those relying on exports need to consider the ease of reaching gateways as well as consumers. There is no single answer, but mapping supply and demand flows is the logical starting point.
The Power of Connectivity
Once flows are understood, the next consideration is connectivity. The UK’s motorway and rail network is the backbone of national distribution, and being close to the right junction can be the difference between a reliable service and a constant battle with congestion. The Midlands has long been considered the country’s logistics heart for good reason. From hubs around Rugby, Northampton, and Lutterworth, a lorry can reach most of the UK population within four hours.
The North offers growing advantages too, with major routes through Manchester, Leeds, and Liverpool, as well as investment in rail freight and better links to ports serving Europe. London, by contrast, struggles with congestion and limited land but remains compelling for last-mile operations. In practice, many companies compromise by putting large national distribution centres inland, where connections are strongest, and supporting them with smaller city hubs.
Gateways: Ports and Airports
For supply chains built on imports or time-sensitive goods, ports and airports cannot be ignored. Proximity to Felixstowe, Southampton or London Gateway can cut costs on container transport. At the same time, airports like Heathrow, Manchester and East Midlands are vital for fast-moving goods such as fashion or perishables. Yet locating directly at a gateway is not always best. The “golden triangle” in the Midlands illustrates how being a short drive inland offers the best of both worlds — efficient access to ports and airports alongside nationwide reach.
People and Power
Warehouses are nothing without people. Access to labour remains a major factor in site selection. The Midlands benefits from a long-established workforce skilled in logistics, while London and the South East face higher labour costs and tighter competition. The North offers lower costs and an available workforce, especially around large cities. Companies also need to consider not just today’s labour market but future recruitment, training and retention.
Power has recently joined people as a critical constraint. The transition to electric vans and HGVs means warehouses must be able to support charging infrastructure at scale. A large facility may need as much power as a small town. Sites without grid capacity or clear investment plans risk being left behind. The question of energy supply is fast becoming as important as land or roads.
Price and Practicality
Cost is always part of the calculation, but headline rents only tell part of the story. A cheaper site far from customers may rack up millions in additional transport costs, while a more expensive location near demand may save money overall. Businesses should model total supply chain costs rather than simply comparing rent per square foot.
Some industries face unique drivers. Food manufacturers often need to be close to the field, while automotive suppliers prioritise proximity to assembly plants. Pharmaceuticals may choose locations based on clean energy availability or specialist storage conditions. For these sectors, the “perfect” location may look very different to a generic distribution model.
Hub and Spoke or Single Site?
Finally, there is the question of network design. Not every business should rely on a single warehouse. A hub-and-spoke model, with a central distribution hub supported by smaller regional spokes, often delivers the best balance of efficiency and service. E-commerce in particular has driven this approach, as consumers demand rapid nationwide delivery. The central hub manages stock while spokes bring goods closer to the end customer.
The choice depends on order profiles, product types and service promises. A business with large, infrequent shipments may thrive on a single site, while one handling thousands of small parcels will almost certainly need a network.
No Universal Answer
Finding the perfect warehouse location in the UK is not about choosing between London, the Midlands, or the North. It is about understanding the unique mix of supply, demand, connectivity, people, power, and cost for each business. For some, that means the immediacy of London despite the price; for others, it is the central pull of the Midlands, while many will take advantage of the North’s cost benefits and industrial heritage.
There is no universal answer, only the right balance of trade-offs for each supply chain. Businesses that approach the decision with a clear view of their flows and a willingness to think beyond rent will find not just a building, but a foundation for growth.
Considering a new warehouse? Contact the experts at FLOX to help you find the perfect location for your business.