Unlocking Industrial Futures: Why Digital Strategy and Place-Based Governance Are the New Infrastructure for Private Capital

By Paul Frainer, Olive Branch Consulting

Next week at the Last Mile Conference, I’ll be joining a panel alongside Paul Weston (Prologis), Jonathan Holland (Legal & General), and others to explore a critical question:

How can the UK’s industrial strategy unlock institutional capital to deliver the modern, flexible space our economy needs?

It’s a timely conversation. The UK is at a pivotal moment: a pro-growth government, a refreshed industrial strategy, and a wave of devolution deals are converging. But while the policy signals are strong, the delivery mechanisms remain fragmented. The real challenge is not ambition, but alignment between national strategy, local delivery, and institutional capital.

From Strategy to Stewardship: A New Architecture for Place-Based Investment

For too long, policy ambition and capital deployment have evolved in silos. Institutional investors need long-term certainty, clearly articulated strategic purpose, and investable propositions that are legible, de-risked, and grounded in place.

That certainty is now being built through the government’s devolution agenda, which mandates Strategic Authorities (currently Mayoral Combined Authorities and Counties) to produce two interlocking documents:

• Local Growth Plans (LGPs): setting out economic priorities and investable projects.
• Spatial Development Strategies (SDSs): providing the statutory spatial framework to underpin them.

These aren’t just planning documents. They are the new infrastructure for investment.

1. Statutory Certainty Through Spatial Investment Frameworks

Institutional capital particularly from LGPS pools is inherently long-term. It needs assurance that investments will withstand political and economic shifts. The SDS, if done well, can provide that assurance.

It should:

• Spatially map long-term visions for growth, housing, infrastructure, and environment.
• Evidence infrastructure deficits and investment needs at sub-regional scale.
• Delineate zones for advanced manufacturing, AI clusters, life sciences, and more with clear utility and transport requirements that actually align with planned and future growth in SDS and Local Plans.

This is how we move from “vision” to “investable proposition.” The SDS gives private capital the statutory teeth it needs to commit.

2. Investor-Ready Data Pipelines: Digitising Evidence through to Execution

Capital doesn’t flow to ambition it flows to clarity. That means building live, connected, structured, standardised, and accessible data pipelines that link SDSs and LGPs to actual projects. In 2025 if we are not starting with digital foundations and maximising the huge opportunities to reimagine our policy to delivery ecosystem we are failing.

Some areas are already thinking about this and those moving first with joining up the dots will be first to reap the benefit. I am working with some front runners on this to pilot this approach and we are mapping key actions including:

• Digital and Data Integrations and Geospatial Approaches: Mapping existing data (housing, transport, economy), identifying gaps, and avoiding duplication.
• Evidence and Data Standardisation: Creating data catalogues with schemas, update rules, and visualisation standards for dashboards and investor packs.
• Interoperability and Scenario Modelling: Focusing on integration and interoperability. GenAI tools and predictive analysis to de risk, reduce administrative burdens and catalyse productivity maximising investment impacts

This is not about tech for tech’s sake. It’s about making local evidence legible to national investors whilst upskilling the delivery ecosystem to understand how to structure and frame their needs

3. Collaborative Governance: Building Confidence Through Stewardship

Investment proposals are only as strong as the governance behind them. The City of London may hold the capital, but it often lacks the local insight to deploy it effectively.

That’s where Strategic Authorities come in, not just as planners, but as place stewards. The GMCA / GMPF model shows what’s possible: shared boards, aligned incentives, and long-term collaboration.

To replicate this, we need:

• Early Engagement: Between Strategic Authorities and LGPS Administering Authorities, before LGPs are finalised.
• Shared Language and Metrics: Using Placed Based Impact Investment (PBII) aligned impact frameworks to track economic, social, and environmental returns.
• Capacity Building: Many authorities lack the commercial and impact measurement skills needed. LGR and devolution could make or break this - but done well embedding digital and AI capability with human in the loop learning validation and capability/skills building could be game changing.

4. Blended Investment: Future-Proofing the Industrial Economy

The industrial sector’s needs are no longer siloed. Delivering “space” is not enough. We need blended, place-based strategies that integrate:

• Workforce Housing: Low-carbon, affordable homes near employment zones.
• Clean Energy: Grid connections and local generation to power growth.
• Digital Infrastructure: High-speed connectivity for advanced manufacturing and digital sectors.

The SDS is the integrating document that can show how these elements fit together and how public and private capital can co-invest to deliver them.

Conclusion: From Pipeline to Platform

The alignment of the UK’s industrial strategy with institutional capital depends on one thing: institutionalising certainty at the sub-regional level.

To do that, we must:

1. Use SDSs as statutory investment frameworks.
2. Build digital, investor-ready evidence bases.
3. Adopt collaborative governance models that de-risk delivery.

This is not just about unlocking capital. It’s about building a resilient, investable economy, one that’s grounded in place, driven by data, and stewarded for the long term.