Written evidence submitted by Wincanton Scotland (ITS0003)

Call for Evidence: Industrial Transition in Scotland
Submitted on behalf of Wincanton Scotland – Account Development Manager

1. Scotland’s Industrial Transitions: Lessons from the Past

Scotland has historically experienced multiple industrial transitions, particularly in coal, steel, heavy engineering, textiles, and shipbuilding. These transitions were often driven by global economic shifts, automation, and changing demand, leading to job losses and economic decline in affected communities.

• Differences from the rest of the UK: Scotland’s industrial base was heavily centralized in specific regions (e.g., shipbuilding on the Clyde, steel in Lanarkshire), meaning economic shifts had concentrated impacts. Unlike other parts of the UK, Scotland had fewer diversified economies, making recovery more difficult.
• Socio-economic impacts: Communities that depended on these industries faced long-term unemployment, depopulation, and infrastructure challenges. Even today, areas like Lanarkshire and Ayrshire are working to regenerate their economies.
• Effectiveness of government interventions: While UK Government policies, such as regional development grants, attempted to mitigate decline, there were gaps in long-term planning and support for workforce reskilling. More proactive investment in logistics, technology, and infrastructure could have softened the impacts.

2. Future Industrial Transitions in Scotland

Industries at risk of transition or decline include:

• Oil & Gas: The push towards net-zero will require a managed transition for workers in Aberdeen and the North East.
• Manufacturing & Heavy Industry: Automation and global competition pose risks, especially in steel and traditional manufacturing hubs.
• Retail Logistics & Supply Chains: The shift toward e-commerce and automation may change the structure of transport and distribution networks.

Communities that could be affected include:

• Aberdeen and North East Scotland: Energy sector transitions will be a challenge.
• West Central Scotland (Glasgow, Lanarkshire, and Ayrshire): Manufacturing decline and logistics industry shifts could impact employment.

Lessons from past transitions and other countries:

• Industrial strategies in countries like Germany have successfully transitioned workers from declining industries to new sectors through extensive reskilling programs and investment in technology hubs.
• The UK should adopt a more proactive, long-term strategy focused on technology-driven supply chain efficiency, green energy projects, and logistics expansion.

At Wincanton Scotland, we are investing in new infrastructure, such as the Scottish Gateway in Bellshill, to support evolving logistics needs and create sustainable supply chain solutions. These investments provide opportunities for upskilling local workers and improving Scotland’s position in national and international trade networks.

3. UK Government’s Industrial Strategy – Invest 2035

The Invest 2035 strategy should consider the following factors for Scotland:

• Barriers to industrial growth:
• Infrastructure constraints, especially in road and rail networks, affecting logistics efficiency.
• Skills shortages in emerging sectors such as green energy and high-tech manufacturing.
• Regional economic disparities that limit investment in certain areas.
• Enablers of growth:
• Investment in logistics and supply chain modernization, as demonstrated by the Scottish Gateway facility in Bellshill.
• Development of regional technology and innovation hubs to attract new industries.
• Collaboration between government, industry, and education to create tailored reskilling programs.

Ensuring Scottish interests are represented:

• The Industrial Strategy Advisory Council should include logistics and supply chain experts to ensure Scotland’s growing role in distribution is accounted for.
• A place-based approach should focus on Scotland’s strengths, such as renewable energy, technology, and logistics, ensuring that industrial policies align with Scotland’s National Strategy for Economic Transformation and Green Industrial Strategy.

Conclusion

Wincanton Scotland sees significant potential in logistics, supply chain modernization, and infrastructure investment as enablers for Scotland’s economic future. Our new Scottish Gateway facility in Bellshill exemplifies how strategic investment can create jobs, drive efficiency, and support the transition towards a greener, more technology-driven economy. By integrating logistics into industrial strategy, Scotland can mitigate the impacts of industrial decline and position itself for long-term success.

February 2025