The Evolution of Industrial

As the industries we require evolve so too does the nature of our industrial precincts.

As we see the old model for industrial decomposing it creates the fertile conditions for an emergent new industrial precinct clustering around unique local strengths and capabilities and boosting employment and small-scale manufacturing – an innovation across our major city areas.

These emerging industrial precincts are anchored with shopping centres, commercial space, social hubs, incubator spaces, hospitality offerings and great visitor experience. This is a time when with initiatives like Enterprise corridors in NSW (New South Wales) and commercial 3 zones in Victoria we are seeing a rethinking around policy as a result of both companies and teams wanting increased flexibility when it comes to how they work and where they work.

Industrial precincts have the opportunity to catalyse employment, social infrastructure, and connection by bringing together creative industries, start-ups, small manufacturing and creating new models for industrial and workplace design.

These precincts seize the opportunity for cultures of innovation where an ecosystem of players come together around clusters of capability and capacity in specialist areas such as sustainable fashion, resource efficiency and upcycling, biomaterials and other emerging fields across Australia.

Urban industrial lands can be the fertile ground for small scale manufacturing. The landscape of Australian manufacturing nowadays is small, agile and creative. It is increasingly interwoven with creative industries, through innovation-driven manufacturing, craft-based production, and bespoke maker and crafter scenes.

Lessons from overseas tell us that there is a need for these quiet small scale mixed use industrial zones. Take the example of Portland and its maker communities where they recognise that the creative-manufacturing interface generates jobs, assists place marketing, contributes to liveability and enlivens local communities.

A recent study carried out by Monash University soon to be released in the Journal of Planning Education and Research highlights that industrial zones more effectively shield manufacturers from competing and conflicting uses. However, they may not accommodate the growing set of enterprises that combine production and service functions. They also report a variation in industrial zones with some performing as de facto mixed-use environments that provide proximity benefits alongside regulatory protection.

According to Ben Cooke, Principal Town Planner at Tract, there are two fundamental strategic planning considerations as it relates to the evolution of industrial precincts.

The first is to futureproof the medium-long term flexibility and capacity of industrial zoned land to respond to the evolving needs of industry and employment. ‘Short-sighted attempts at inappropriately subdividing industrial land is likely to hamper the ability to explore more holistic and meaningful precinct-scale industrial outcomes in the future’. A balancing act needs to be achieved, whereby some medium-large scale industrial land parcels remain in single ownership, allowing a more tangible future pathway towards accommodating medium-large creative companies, start-ups, and bespoke industrial needs.

 The second is to ensure that long standing land use separation provisions (i.e., buffer distances between intensive industrial land uses and more sensitive land uses – such as those generally described as ‘creative industries’) continues to facilitate appropriate amenity outcomes. ‘Innovative and creative business opportunities should be encouraged in industrial precincts’, says Ben, ‘but should always be appropriately located to ensure cohesive and logical amenity and operational outcomes both at the ‘site’ scale and ‘precinct’ scale’.

Recent work by  Hatuka and Ben-Joseph 2022; Lane and Rappaport 2020; Roost and Jackel 2021argues that the changing nature of urban manufacturing toward smaller scale and niche production calls for reintegrating production into mixed-use zones. A local exemplar of successful industrial precinct revitalisation is the Morris Moor project in Moorabbin in Victoria where Up Properaty have successfully transformed the site of the former Phillip Morris cigarette factory into a vibrant commercial and hospitality precinct that draws the community in and celebrates local heritage.

The recently released draft precinct vision for Cheltenham in Victoria has highlighted the Moorabbin Industrial precinct that extends far to the northeast of the Cheltenham Precinct as a significant regional hub for light industrial, business, and retail. Over time it is anticipated that the existing trend towards employment growth in such precincts will continue with higher order office-based employment and greater job density for the local area.

Another great example of the evolution of industrial Alexandria in NSW. An industrial area once filled with factories and warehouses has transformed into large industrial spaces filled with breweries, creative workshops and fashion houses.

Within this hub is the Axis Alexandria. The first multi-level industrial facility of its kind in Australia. Located in the pivotal heart of South Sydney, adjacent to the WestConnex St Peters Interchange.

Art Pharmacy in collaboration with Goodman proposed a public artwork in line with the rich history and vibrant creative community of Alexandria, NSW. Goodman and Art Pharmacy selected internationally renowned artist Rowena Martinich to implement large-scale artworks inside two five-storey fire stairwells to encourage tenants, visitors, and the broader community to reflect on the power of colour, scale and movement. 

As industrial precincts evolve we are faced with a balancing act between business opportunities and employment and the provision of the required levels of amenity whilst also ensuring that these sites and precincts can deliver operational outcomes required at both a site and precinct scale whilst remaining affordable for small scale food and beverage, creative and manufacturing industries.

The Evolution of Industrial by Claire Bowles Purpose Director, was published in vol 42, number 4, 2024 of Shopping Centre News magazine.