Lloyds Bank Report
Construction Index notes that more than two thirds of house building companies are investing in some kind of modular or prefabricated housing,
according to a new survey. House-builders are looking to so-called ‘modern methods of construction’ – doing as much of the work as possible in factories
instead of on building sites – to maintain their huge profits, according to the report from Lloyds Bank
Supply Chain Survey
The third annual Lloyds Bank housebuilding report, which surveys house-builders and their supply chain, assesses the state of the industry. It found that 68% of firms are already investing in modular housing techniques and 56% reported investing in panelised systems.
Reported motives include improved efficiency, ease of build, better construction standards and increased margins. Investment in new building techniques has increased year-on-year from 20% of current annual turnover to 24% over five years.
Addressing Skill Shortages
Builders were also questions about the labour market and 31% said there was a skills shortage at a national level. A half of respondents said that the UK’s exit from the EU was exacerbating the skills shortage. Almost seven in 10 firms (69%) of are investing in staff training but only 51% have apprenticeship programmes.
Positive Optimism – Strong Growth Ambitions
The research found that optimism about the future of the house-building industry remains positive. It gives it a score of 6.9 out of a maximum possible 10. Last year it was 7.2. Growth ambitions also remain strong with the sector collectively anticipating growth of 29% of current business turnover over the next five years, up from 28% last year.
House-builders expected to invest 31% of their current annual turnover back into their business over the next five years, still historically high but down slightly from 35% in the last report. David Cleary, regional director and national head of housebuilding at Lloyds Bank Commercial Banking, said:
“The housebuilding industry remains upbeat despite issues that have weighed down the sector for some time, including Brexit uncertainty, which is contributin to a skills shortage and inflating the cost of raw materials. It is reassuring to see the sector confronting these challenges head on by investing and planning for business growth, prioritising staff training and looking at more innovative new building techniques. This has the potential to boost productivity and, more importantly, increase the pipeline of new homes that the nation badly needs.”
Output up 74%, but HBF Sees Challenges
Stewart Baseley, executive chairman of the Home Builders Federation said:
“Whilst output is up an unprecedented 74% in the past four years, the industry faces some huge challenges as it strives to meet the housing needs of the country. House-builders are investing significantly to address these challenges and ensure the industry has the capacity and skills to deliver even more, high quality homes.”
‘Fabric First’ Timber Buildings
Our business is ‘Offsite’ construction. Timber & SIP frames are designed from the outset in 3D to help architects and their clients deliver the positive benefits described above. Doing so places extra burdens and challenges on the small number of people with the knowledge, design skills, and experience to do this, but fortunately our inhouse training programme keeps them at the forefront of techniques, materials, developments and initiatives, like WELL
(see WI 27th April 2018).
Prefabrication Is Key
Factory prefabrication of elements, following ‘Considerate Constructor’ guidelines, and delivering “light”, “warm”, and “modern” buildings along with renewable energy components is part of our quest. Produced under off-site factory controlled conditions, these can go a long way toward offering low cost energy saving homes and improved communities. This includes the availability of carefully selected complimentary components and methods to speed up work on site as well as providing unusual and hard to find environmentally sound, eco-friendly, sustainable and complimentary building products and components that facilitate merging with local vernaculars.
Your Partner in Development
Whether you are an architect, builder or private client, almost certainly you are becoming aware of changing homeowner preferences and aspirations.Working with our teams we believe will help you to provide you’re your clients want and more readily marketable homes.
Better all-round Savings
Our specialist services and CUSTOM homes division deliver best value and protect the interests of land owners, house-builder developers, professionals and private individuals seeking to build their dream home. Our off-site construction systems also reduce the amount of material that gets wasted on site, helping to avoid land fill, hazardous waste separation and handling, They also deliver better value for you and your customers.