Research carried out by the Ryden property consultancy has found that the lack of new industrial development in Scotland is threatening to hold back growth in Scottish manufacturing.

The report says that many older factory sites — often dating back to the 1970s and 1980s — are becoming “increasingly obsolete, given issues such as the need to be more energy-efficient”.

In addition, there are more companies looking to relocate to more-modern premises or expand to take advantage of increased business. The report says that, although the industrial sector entered the downturn in 2008 with “an under-supply in prime areas and creeping obsolescence” at older estates, demand remained relatively robust.

“A long-term lack of new industrial development is now becoming critical in prime locations”. As a result, “occupiers must accept higher rents for suitable buildings.”