A new industry survey undertaken by offsite recruitment specialists ARV Solutions and leading offsite advisors Cogent Consulting, has revealed a range of views from staff recently involved with the volumetric modular housing sector.
The volumetric modular homes sector has seen a dramatic rise and fall over the last few years. The number of ‘disrupters’ entering the sector with huge delivery potential, deep financial backing and no end of technological know-how, made the prospect of delivering the timeworn target of building 300,000 UK homes a year within reach.
A mixture of factors has seen several of these companies fail – sometimes unexpectedly and due to external circumstances – but fail nonetheless, and exit to some financial tune, cancelled projects and significant job losses.
To pool opinion and try to understand the reasons why the volumetric modular homes sector has stalled in the way it has, ARV Solutions with the help of offsite specialists Cogent Consulting, reached out to staff affected from several of the high-profile business that have closed to find out more and to try to undertake some root cause analysis, so that lessons can be learned and shared to potentially avoid repeat failures in the future when the technology inevitably trend re-emerges.
Although there has been an exodus of businesses from the volumetric homes sector, the survey revealed that whilst there is an air of trepidation from departing personnel about the factory environment they had been operating in, the overwhelming response was that volumetric technology and the prospect of returning to work inside that industry were resoundingly positive – the way in which the businesses were structured, managed and ran perhaps less so.
But what are the perceived main reasons volumetric modular housing manufacturers have struggled in the UK? High initial set-up costs, overheated company growth and overly ambitious expectations, cash flow issues, supply chain immaturity/disruptions, planning and regulatory frustrations, limited scalability and inconsistent demand pipelines. Put this together with fractured understanding and relationships between design and delivery teams plus the long-standing construction culture that is resistant to change, and the recipe is ripe for disaster.
All these issues cannot be ignored. Indeed, one common complaint was a critical disconnect between trades within the manufacturing environment and the ‘site side’ of the construction project – delivery teams, installers and on-site processes. Clear communication is the bedrock of any successful construction project – using any building method in any sector. Only better training, education and collaboration can fix some of these problems.
“The voices of those who built and shaped the volumetric modular housing sector – only to be impacted by its closures – have largely gone unheard,” says Jim Roach, Managing Director of ARV Solutions. “While much has been written about the industry’s struggles, the skilled workforce deserves recognition. The response from our candidate network was overwhelming, demonstrating just how much this matters. I was alarmed by how many have left offsite construction, especially given the ongoing skills shortage. However, it is encouraging that most would return under the right conditions. The industry cannot afford to lose this talent – it must act to retain and attract these experienced professionals.”
The UK offsite sector contains many hugely talented and driven individuals and businesses, full of knowledge and expertise gathered over years – if not decades in some cases. This wealth of understanding is transferable to other sectors but also other countries. The UK offsite sector is well advanced compared to other parts of the world, and one thing that must not happen is for this level of experience to leave the UK in a ‘brain drain’ when construction and manufacturing skills at home are at a premium. Digital design with automated and robotic technologies, now sit alongside a wider understanding of supply chain management, product design and lean manufacturing processes.
“Re-engaging the volumetric modular technology supply-chain in residential developments will be essential in attempting to achieve government housebuilding targets,” adds Darren Richards, Cogent’s Managing Director. “This technology sits alongside panellised and hybrid approaches and must be carefully selected and applied to the right projects if it is to be successfully delivered. The housing sector needs additional capacity from all offsite manufacturing resources available, and it is imperative that the volumetric modular sector dusts itself off, embraces the learnings from the recently challenging period and goes again.”
While the volumetric modular homes industry has taken a hit over the last three years, the technology and potential it holds is still huge. Market dynamics may have exposed weaknesses but there is still a compelling case – especially with affordable homes, where pattern book designs and a DfMA approach can unlock massive benefits and provide consistently high results – for it to play a transformative role in delivering the housing targets that successive Governments announce but historically fail to achieve.
For more information visit: www.arvsolutions.co.uk www.cogent-consulting.co.uk
