MODULAR CONSTRUCTION

Transformative Technology Driven By Increased Demand

Scanning industry headlines you could not fail to notice that some relatively new entrants to the volumetric modular arena are facing challenging times. But as Richard Hipkiss, development director of the Modular and Portable Building Association (MPBA) explains, the outlook in mature commercial markets is more positive, driven by increased demand in the healthcare and education sectors.

[MANY CONSIDER modern methods of construction (MMC) to be relatively new, but the transformative technology has evolved over many decades. It is hard to believe that Wernick Group has been around since 1934. Not long after, other major players in today’s industry joined the ranks, with the foundation of Portakabin in 1961 followed by Elliott Group (Algeco) in 1963, Pickerings in 1969 and Thurston Group in 1970.

So how have these companies stood the test of time? There is no one simple answer; but in the main it is down to developing technical solutions to overcome inherent industry issues, while also having a keen eye on the future and anticipating what is coming down the track.

A simple but effective tactic

It is universally agreed that a robust and regular pipeline of work is essential to ensure that the overheads incurred in running the high-tech manufacturing facilities associated with MMC are covered. Planning ahead for the peaks and troughs is essential. That can be managed in various ways, but experienced operators have a simple and effective tactic. By using a series of interconnecting factories, manufacturing facilities can be expanded at times of high demand and closed off if a project, for example, suffers planning delays.

Evidencing value

Pre-manufactured value (PMV) is another driving force in the specification of volumetric technology in the commercial sector. PMV is a core metric for measuring the level of MMC in a project and is central to the UK Government’s procurement programmes. To secure a contract, suppliers are required to show that pre-manufacturing will account for 70% of their construction cost, which plays to the strengths of a volumetric modular approach.

Acquisition and investment

Portakabin has recently confirmed the acquisition of healthcare modular buildings specialist Darwin Group. Both companies say the move will offer significant benefits to healthcare providers across the UK. The acquisition was driven by a shared belief that every patient should have access to world-leading healthcare facilities that empower clinicians and the broader healthcare system to deliver exceptional care.

And while Legal & General (L&G) has made the decision to close its modular housebuilding factory – citing the impact of the pandemic and planning delays – Aviva Capital Partners (ACP) is investing £20m into TopHat. That equity funding will support TopHat’s major new factory in Corby and the creation of 1,000 new jobs. The factory, anticipated to operate from summer 2024, has been designed to be capable of manufacturing 4,000 ultra-low carbon homes a year and will be Europe’s largest modular housing factory.

The answer to the UK housing crisis?

Fast-build modular homes are certainly one of the answers to the UK housing crisis. The quality, energy efficiency, speed and sustainable manufacturing processes achieved in a factory environment are difficult if not impossible to replicate using a traditional site-based construction approach.

Taking a long-term view, ACP state that their investment was driven by the sustainability credentials of TopHat’s low-carbon homes. In 2025, compliance with the UK Government’s Future Homes Standard will become mandatory. Its aim is to ensure that new homes built from 2025 will produce