Construction Methods at a Crossroads

The case in favour of greater use of offsite construction has largely been settled. Faster build times, better quality, more cost certainty and less environmental impact are some of the factors that convinced the Government to adopt a presumption in favour of offsite for publicly funded projects.

The Farmer Report, a detailed economic analysis by KPMG and a study by the House of Lords Science and Technology Committee, all point to offsite manufacturing as the future. The question is: why isn’t it the present?

There’s a bit of an impasse at the moment. More investment is needed to build production capacity so that offsite can reach its true potential and become the preferred method of construction. The problem is that manufacturers are not seeing a secure enough pipeline to be confident that the equipment and technology they invest in will be kept busy.

How to Manage Demand and Capacity?

There’s a big difference between traditional construction – where uncertain demand is managed by flexing the size of the workforce or supply chain – and a manufacturing business where production lines need to be kept rolling.

The problem is that the policy and the business case are not yet reflected in procurement behaviour, either at the client or main contractor level. Strangely, the new methods that are proven to deliver are seen as risky, compared to established methods that frequently fall short when it comes to cost, timing and quality.

The further irony is that greater certainty over the pipeline will trigger more investment in robotics and equipment that will make offsite even more efficient and economically beneficial. To unlock these benefits, the awareness, attitude, and behaviour of buyers needs to change.

Skills Shortages Are Not Going Away

Construction already has a skills shortage. Brexit and an ageing workforce will almost certainly make this shortage more acute. This will push up costs and make traditional builds even less likely to be delivered on schedule.

Economic and practical necessity will ensure that the dam will break at some point. Buyers will be jolted out of the apparent comfort zone of methods they know and understand. And when offsite becomes seen as the only viable way to guarantee that projects are delivered on time and on budget, it will be the early adopters that have a significant advantage.

Take a look at our case studies to find out more.