Strong likelihood of increase in off-site construction

The panellised modular building systems market in the UK was worth £753m in 2019, and although there was a fall in output in 2020 due the pandemic, the future looks bright, according to the latest report from AMA Research.

Market value fell by 15% this year, dropping to £636m. However, the report predicts that off-site manufacturing, such as panellised modular building systems, may recover faster than traditional forms of construction, as it is more conducive to Covid-19 safety measures such as social distancing. It is also less labour intensive, requiring fewer personnel on site. 

“More importantly there is now a strong likelihood of an increase in the use of volumetric and other types of off-site construction methods to help meet the chronic housing shortage, cope with the lack of traditional construction skills within the construction industry and help meet the government’s pledge to be carbon neutral by 2050,” the report said. “Off-site construction, with open-panel timber-frame systems the most widely used type, could very well be the solution to delivering much needed affordable homes and to deliver them quickly.” 

AMA Research predicts a significant increase in off-site production capacity with many leading housebuilders and RPRs declaring their intentions to substantially increase their use of off-site systems to build new homes.

Timber frame is the largest sector, with a share estimated to be 70%, due to a larger supply base and extensive usage in the Scottish housebuilding market and self-build sector.

AMA Research is part of Barbour ABI, a leading provider of construction intelligence services. 

13 November 2020

Previous Post: House prices up again

Next Post: 10-point plan for ‘green revolution’