Modular Construction: The Future of the Construction Industry

The construction industry is changing, and it’s changing fast. The UK construction industry is facing massive challenges as demands for houses increase while the traditional method of construction becomes increasingly inefficient.

The Ageing workforce

The construction industry has reached a turning point. Employers are unable to recruit staff with the right skills, qualifications, or experience. Ultimately, it will just compound the crisis we are already facing in the U.K.

A survey conducted by the Centre for Ageing Better showed that UK employers were unprepared for the ageing workforce. This will have a serious effect on many aspects of society, especially the construction sector. 

The construction industry is rapidly becoming an ageing workforce with 15 to 20 percent who are 50 to 60 years old. At the same time, the industry is losing younger workers to competing sectors that appeal to be more stable. The loss of skilled workers and the decline of the younger generation to replace those retiring means that there will be fewer workers who are capable of servicing the traditional UK construction industry. As a result, construction projects using bricks and mortar approach and dependent on the traditional set of skilled workers will be more demanding than ever.

On the contrary, modular construction is less labour intensive onsite. It is starting to prove its increasingly important role in the UK’s construction sector and will continue to boost the productivity of construction.

Bricks Shortage in the UK

Another crucial factor that makes modular construction even more promising is the fact of the recent bricks shortages. According to PBC Today, “the UK is currently experiencing a brick shortage, with many companies being forced to wait for over 12 months for bricks.” The research conducted by the Federation of Master Builders (FMB) revealed that bricks have the longest wait time and that they are considered the highest priced (9% increase on average) construction material due to the cost of raw materials needed to make them.

The deficit of bricks is associated with the recession in 2008, where there is a significant decline in the housing market. As a result of the financial crash, brick companies were bankrupt or slowed in growth. This is especially true for small-medium companies.

Overall, this situation exacerbated the housing crisis by making developments tedious and pricey. 

An Opportunity

The two mentioned factors provide an opportunity for developers and investors who are willing to embrace this modern method of construction. Leveraging offsite construction methods comes with a wide range of benefits. 

While the traditional construction process is linear, offsite construction allows you to erect houses in a matter of days onsite. Offsite construction allows developers to carry out two phases in parallel, such as getting the site ready while the modules are being built at a factory.

What it means is that the project is not at the mercy of time constraints, weather, or rates of materials or labour. Furthermore, modular construction is less risky in terms of cost and schedule, and it’s a non-crowded method that can help your business prepare for the massive changes coming in this sector.

The massive housing shortage in the UK remains, and modular construction allows developers to add new homes to communities and contribute to the neighbourhood in a more efficient way than before. 

If you would like to learn how you can benefit from modular construction methods, either as an investor or a home buyer, have a chat with one of our advisors. Please email, Call or Text +44 (0) 7365-515-684 or Book a free consultation here.

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