AN increase in demand for industrial property is often a sign that an economy is recovering.
In a predominantly industrial city, such as Melbourne, this is a reliable indicator.
The oversupply created in the heavy building programme from 1987 to 1991 is now being taken up, at least for smaller units. And while the rate of new building is still low, it is reviving.
Melbourne has industrial activity well above the Australian average; 20 per cent of its labour is engaged in manufacturing compared to the national average of 15 per cent.
Twenty-seven per cent of the city's workforce is engaged in warehousing and distribution, above the national figure of 26 per cent.
Melbourne is thus well placed to benefit as consumer demand increases. With interest rates at an all-time low and a growing export trade, particularly with Asia, manufacturing industries are expected to emerge from the lean years into a promising future.
