Post-Brexit Revival: Unlocking Undervalued Assets on the UK's East Coast

The UK's East Coast has long been a cornerstone of its industrial might, but Brexit has reshaped its economic landscape in ways both challenging and opportunistic. While the region's manufacturing output has surged by 21% since 2019-outpacing national averages-post-Brexit trade frictions, regulatory hurdles, and labor shortages have left critical assets undervalued. Yet, these same pressures are now creating fertile ground for strategic investment in manufacturing and logistics infrastructure poised for revitalization.

The Dual Narrative of Growth and Strain

According to the Regional Manufacturing Outlook 2025, the East of England's manufacturing sector contributes 9% of the UK's total goods exports and supports 228,000 highly skilled jobs, with pharmaceuticals, food & drink, and machinery as its pillars. However, Brexit's administrative burdens-customs checks, non-tariff barriers, and labor shortages-have disrupted supply chains, particularly for firms reliant on EU trade. The report also found the region exports 49% of its goods to the EU, making it acutely vulnerable to post-Brexit trade delays. Meanwhile, a Logistics Report 2025 highlights that the logistics sector grapples with rising costs and connectivity bottlenecks, dampening efficiency.

Yet, these challenges mask a deeper story of opportunity. The UK's Modern Industrial Strategy 2025, coupled with regional initiatives like the East Coast Cluster, is redefining the value proposition of underutilized assets.

Undervalued Assets: From Strain to Strategic Value

1. Teesside and Humber: Green Industrial Powerhouses
The Teesside and Humber regions are emerging as flagship projects under the UK's net-zero agenda. The East Coast Cluster, a carbon capture, utilization, and storage (CCUS) initiative, aims to capture 27 million tonnes of CO₂ annually by the mid-2030s, supported by a £600 million government investment described in the Modern Industrial Strategy 2025. This cluster, part of the Northern Endurance Partnership, leverages existing industrial infrastructure and new hydrogen transmission networks to position the region as a global leader in low-carbon manufacturing; analysis in UK Property Investment 2025 also highlights the commercial upside. For investors, this represents a dual opportunity: participation in decarbonization and access to a £1.2 billion hydrogen grid blueprint outlined in that property analysis.

2. Manchester's Logistics Renaissance
Manchester's strategic location, coupled with its proximity to Liverpool and Teesport, has transformed it into a post-Brexit logistics hub. The city's 5–7% rental yields-compared to London's 3–4%-are attracting capital as businesses decentralize from congested Southeast routes, according to the property analysis. Manchester's logistics sector benefits from HS2 connectivity and the Northern Powerhouse initiative, which is projected to boost regional GDP by 10% by 2030 in the same industry review. Underutilized Grade B logistics sites, now re-entering the market, offer cost-effective entry points for firms seeking resilient supply chain solutions, as regional manufacturing data notes.

3. Freeports and Tax Incentives
Freeport zones, such as those in Teesside and Liverpool, offer 0% business rates and reduced national insurance for manufacturers, incentivizing capital reinvestment. The Regional Manufacturing Outlook expects these zones to see heightened demand as companies reassess location costs post-Brexit. For example, the Teesside Freeport's £1.5 billion investment plan includes upgrading port facilities and expanding CCUS infrastructure, directly aligning with the government's 10-Year Infrastructure Strategy described in the Modern Industrial Strategy document.

Policy Signals and Economic Tailwinds

The UK government's 2025 Industrial Strategy emphasizes regional rebalancing, with £600 million allocated to logistics and industrial sites, according to the strategy document. This includes funding for the National Supply Chain Centre, which will optimize trade routes and reduce post-Brexit bottlenecks. Additionally, the Windsor Framework's "green corridor" for food and medicine exports to Northern Ireland has eased some customs burdens, signaling a regulatory shift toward efficiency; an ECB economic bulletin discusses these trade and labour-market impacts.

Regional data underscores this momentum. The East of England's manufacturing sector accounts for 10.7% of the region's GVA, with pharmaceuticals and advanced engineering as growth drivers, as the Regional Manufacturing Outlook indicates. Meanwhile, real estate markets in the East Coast are projected to see a 15% investment increase in 2025, fueled by falling interest rates and demand for energy-efficient properties, per the same regional review.

The Investment Case: Risks and Rewards

While Brexit-related uncertainties persist, the East Coast's undervalued assets present asymmetric upside. For instance, the Teesside Cluster's CCUS infrastructure is projected to create 20,000 jobs by 2030, while Manchester's logistics hubs offer scalable solutions for e-commerce and green supply chains. Investors should prioritize assets with dual exposure to government-backed decarbonization and regional growth strategies.

However, risks remain. Regulatory divergence from the EU has yet to yield clear trade advantages, and inflationary pressures could delay ROI timelines. Yet, for long-term investors, these challenges are temporary. The UK's commitment to a hydrogen-based economy and the East Coast's strategic positioning in global supply chains suggest that the region's undervalued assets will outperform in the next decade.

Conclusion

The UK's East Coast stands at a crossroads. Brexit's immediate challenges have obscured the region's long-term potential, but the interplay of policy, innovation, and market demand is creating a compelling case for investment. From Teesside's carbon capture projects to Manchester's logistics renaissance, the East Coast offers a blueprint for post-Brexit industrial revival-one where undervalued assets become the engines of tomorrow's economy.