The socio-economic impact of businesses in the railway arches
4.9
Arches play an important role in supporting smaller manufacturing and craft businesses, who are often highly specialised in what they do. They play an important part within wider supply chains, for example food production and distribution where proximity to local restaurants and retailers is crucial. The Arch Company spaces can promote the clustering of businesses, a phenomena whereby businesses group near to one another, drawing from common talent pools and collaborating with each other. This can have particularly large benefits for SMEs, leading to higher survival rates, increased innovation, and improved productivity. 36 Indeed, there is evidence of this occurring organically within The Arch Company portfolio, such as the clusters of breweries in Bermondsey and taxi repair and servicing businesses in Bethnal Green. Within London, the industrial space within The Arch Company portfolio is vital for the capital to meet its required provision of space. The Arch Company portfolio contains more industrial space than has been delivered in new development across London over the last 10 years for which data are available. 37 As of 2023, there is more industrial space supported by The Arch Company in London than there is in 14 of the 33 London boroughs. 38 This comparison becomes more pronounced when only Inner London boroughs are considered, with The Arch Company portfolio containing more industrial space than 9 of the 14 Inner London boroughs. Note that when looking at commercial space as a whole (across all use types), the Arch Company’s total portfolio is larger than 11 London boroughs, still a substantial relative quantum. Given the focus of the company on smaller flexible spaces in the heart of urban areas, this space supports many of the capital’s small and growing industrial businesses.
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Figure 4.2 – There is more industrial space in The Arch Company portfolio in London than in the entirety of many London boroughs
Amount of industrial floorspace by inner London borough and The Arch Company (2022 000s m 2 )
Source: The Arch Company internal data, 2023. VOA, 2023. Non-Domestic Floorspace: Stock of Properties Including Business Floorspace. NB: Space within The Arch Company portfolio is excluded from borough totals.
36 JP Morgan and Chase, 2014. The Missing Link: Clusters, Small Business Growth and Vibrant Urban Economies
37 The GLA, 2021. London Development Database records a total completion of 496,000m2 of B2 floorspace over the period FY2009- FY2019.
38 VOA, 2023. Non-Domestic Floorspace: Stock of Properties Including Business Floorspace
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