The Future of Modular Construction in the UK

13 June 2024

Modular construction is steadily rising in popularity within the UK, heralding a new era of efficiency and cost-effectiveness in the construction industry. This innovative approach, which involves fabricating building components in a factory before assembling them on-site, offers numerous advantages over traditional construction methods.


The Rise of Modular Construction

The UK construction industry has long been plagued by inefficiencies, delays, and cost overruns. Modular construction addresses these issues by allowing for simultaneous site preparation and building fabrication, significantly reducing project timelines. According to a report by the UK Parliament, the modular construction market is expected to grow by 6.3% annually, reaching a value of £12 billion by 2025.


One notable example of this growth is the £2.5 billion modular housing scheme announced by Homes England, aimed at delivering 25,000 new homes by 2026. This ambitious project underscores the government's commitment to modernising the housing sector and addressing the national housing shortage.


Efficiency and Speed

Modular construction can reduce project timelines by up to 50%, a significant improvement over traditional methods. The Construction Industry Training Board (CITB) reports that modular projects typically achieve an 80% reduction in on-site labour, thanks to the precision and predictability of factory settings. This efficiency is particularly advantageous in urban areas where minimising disruption is crucial.


A case in point is the George Street development in Croydon, London, where two high-rise towers were completed 40% faster than if they had been built using conventional techniques. This project demonstrates how modular construction can deliver large-scale developments swiftly and with minimal disruption to the surrounding area.


Cost-Effectiveness

The cost savings associated with modular construction are also noteworthy. The CITB estimates that modular construction can reduce costs by up to 20% due to economies of scale and reduced waste. The controlled environment of a factory allows for better resource management and quality control, leading to fewer errors and less rework.


In a study conducted by the Modular Building Institute, 75% of developers reported lower costs and higher profitability when using modular construction. This cost-effectiveness is particularly appealing in a sector often beset by budget overruns and financial uncertainty.


Quality and Sustainability

The precision of factory fabrication ensures high-quality finishes and robust construction standards. Modules are built to withstand transportation and assembly, often exceeding the durability of traditionally constructed buildings. Moreover, the modular approach aligns with the UK’s sustainability goals. Off-site construction generates up to 90% less waste, and the controlled environment allows for better energy efficiency and material use.


Tim Hall, CEO of modular construction firm InHouse, highlights the sustainability benefits: "Modular construction not only speeds up the building process but also significantly reduces waste and carbon emissions. It's a win-win for the industry and the environment."


Future Prospects

As the UK grapples with a housing crisis and the need for more efficient building practices, modular construction offers a promising solution. The government's support, coupled with the industry's growing acceptance, points to a bright future for this construction method. The Construction Leadership Council's Roadmap to Recovery emphasises the role of modular construction in building back better post-COVID-19, with an emphasis on resilience and sustainability.


Conclusion

The future of modular construction in the UK looks promising, driven by its potential to revolutionise the construction industry with greater efficiency, cost-effectiveness, and sustainability. As the sector continues to evolve, modular construction is set to play a pivotal role in meeting the UK's housing needs and advancing the construction industry's overall progress.


By embracing this innovative approach, the UK can build faster, smarter, and more sustainably, paving the way for a more resilient and efficient construction sector.


Keyman Blog

25 April 2025
🏗️ New Labour Reforms: A Game-Changer for Construction Jobs in the UK? The UK construction sector is standing on the edge of major transformation—and it’s Labour that's holding the blueprint. With bold housing targets, sweeping planning reforms, and a renewed focus on apprenticeships, Labour’s new policies aren’t just reshuffling the deck—they’re promising a whole new playing field. Could this be the biggest shake-up the industry has seen in decades? 🏠 Labour’s Big Build: 1.5 Million Homes Labour’s headline pledge? Build 1.5 million homes over the next five years. That’s around 300,000 homes a year—a figure not hit since the 1970s. And it’s not just more of the same. Labour wants to resurrect mandatory housing targets, overhaul planning laws, and launch a wave of brand-new towns—think 20,000 to 60,000 homes each, with transport links, schools, jobs, and green space built in. “We’re going to restore mandatory housing targets and get Britain building again,” said Deputy Leader Angela Rayner. At least 40% of homes in these towns will be affordable or social housing, a much-needed boost as housing demand continues to outstrip supply. Where Are the Workers Coming From? Here’s the catch: we don’t currently have enough builders to meet that ambition. The CITB estimates the industry needs 225,000 new workers by 2027. Labour’s answer? Double the number of apprenticeships by 2026, especially in trades like bricklaying, plumbing, and carpentry. “We must invest in British skills to meet British housing needs,” said Housing Minister Matthew Pennycook. “We can’t keep relying on overseas labour to hit our targets.” This homegrown approach could be a lifeline for a sector that’s been struggling to fill roles since Brexit and the pandemic. Expect a surge in local training programmes, college partnerships, and construction firms getting proactive with recruitment. 🌱 Green Construction = Green Jobs Labour’s plan doesn’t stop at bricks and mortar. They’re betting big on green infrastructure, with projects like the Liverpool Bay Carbon Capture and Storage (CCS) scheme leading the way. Not only will this cut emissions, but it’s also expected to create thousands of construction and engineering jobs—especially in the North. And then there’s ‘Great British Energy’, a new publicly owned renewables company, which will boost the demand for skills in solar, wind, and retrofitting homes. “The green economy is a jobs economy,” said Labour Leader Keir Starmer. “We want the UK to lead in both climate action and employment creation.” 💬 What’s the Industry Saying? The reaction from the construction sector? Cautious optimism. The National Federation of Builders welcomed Labour’s commitment to growth and reform, noting that clear targets and a stable policy outlook are exactly what the industry needs. Even large developers are chiming in. “If we all stick to the plan, 1.5 million homes is achievable,” said David Thomas, CEO of Barratt Redrow. “But we’ve got to fix the planning system and the skills gap.” Still, some concerns linger. The Federation of Master Builders (FMB) has warned that unless local councils are given resources and support, Labour’s lofty goals could stall at the planning desk. 📊 Construction by the Numbers The good news? Things are already moving. According to the ONS, construction output in February 2025 rose by 0.4%, following a small dip in January. Growth came from both new work and repairs—early signs that confidence is returning to the market. But with inflation still high and material costs unpredictable, firms will be watching carefully to see how Labour manages the financial pressures on builders. ✍️ Final Thoughts: Boom or Bust? Labour’s reforms promise a new era for UK construction. The goals are bold, the plans ambitious, and the potential impact—massive. If delivered well, this could usher in hundreds of thousands of new jobs, especially for young people and tradespeople looking to build a future. But the road to 1.5 million homes isn’t paved just yet. It will take collaboration, investment, and—most importantly—speed. If the government and industry can align, we’re not just talking about more houses. We’re talking about a real jobs revolution in construction.
28 November 2024
The construction sector has one of the highest suicide rates of any industry. According to the Office for National Statistics (ONS), male construction workers are three times more likely to die by suicide than the national average for men in the UK. In fact, around two construction workers in the UK take their own lives every day. This stark reality underscores the importance of fostering a supportive and open culture where men feel comfortable discussing their struggles. Why Are Construction Workers at Risk? There are several factors contributing to the mental health crisis in construction: Job insecurity: Many construction roles are contract-based, leading to financial instability. Long hours: Extended working hours and demanding physical labour leave little time for rest or personal life. Workplace culture: Traditional notions of masculinity can discourage men from seeking help or expressing vulnerability. Isolation: Frequent travel for work can strain relationships with family and friends. Signs Someone May Be Struggling Recognising the signs of mental health struggles is critical. These may include: Changes in behaviour or mood Increased absenteeism Lack of motivation or productivity Withdrawal from colleagues and loved ones A Call to Action: Supporting Each Other Employers and colleagues can play a pivotal role in creating a mentally healthy workplace. Here are a few steps that can make a difference: Start conversations: Make mental health a regular topic in team meetings. Provide training: Equip managers and team leaders to recognise signs of mental distress. Offer resources : Promote access to Employee Assistance Programmes (EAPs) and helplines. Normalise help-seeking: Share stories of recovery to break the stigma around mental health. Organisations Providing Help If you or someone you know is struggling, reach out to these resources: Samaritans: Call 116 123 or email jo@samaritans.org for 24/7 support. Mind: Call 0300 123 3393 or text 86463. Visit www.mind.org.uk for guidance and support. Construction Industry Helpline: Call 0345 605 1956 or visit www.lighthouseclub.org for advice tailored to construction workers. CALM (Campaign Against Living Miserably): Call 0800 58 58 58 or visit www.thecalmzone.net for support for men. Together, We Can Build a Better Future  Mental health is as vital as physical safety on-site. By addressing the challenges head-on and offering support, the construction industry can pave the way for a healthier, more resilient workforce. This November, let’s commit to breaking the silence and ensuring every worker knows they are not alone.
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