REPORTS
H A U S
T E C H N O L O G I E S
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The future construction ecosystem will be radically different.
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Companies that familiarize themselves with the next normal and move quickly will be
best positioned to both create value and maintain their competitive edge.
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Looking ahead, up to 45 percent of incumbent value may be at stake in those parts of
the market most heavily affected by shifts…
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15 to 20 percentage points will be value up for grabs as a result of the cost savings and
productivity gains generated by the shifts, with the benefits accruing to players or
customers (in the form of price reductions or quality increase).
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A large share of value is expected to move from construction job-sites to off-site
prefabrication facilities.
HOW DISRUPTION IS RESHAPING THE WORLD’S LARGEST ECOSYSTEM
McKinsey
June 2020
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The construction industry has an opportunity to meet the growing need by becoming
product driven and more efficient with increased productivity through automation and
technology.
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A partnership between existing manufacturing or construction organizations and
developers could effectively deliver modular products at scale
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Capacity to deliver a desirable, cost-effective, quality product…Modular products should
be well-designed, sustainable, energy efficient, and well-suited to every aspect of urban
living for the prospective end user
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A limited pool of qualified modular manufacturers…there are simply very few qualified
modular building manufacturers for non-combustible construction.
A COLLECTION OF INSIGHTS ON SCALING MODULAR CONSTRUCTION
McKinsey
September 2019
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It can be delivered more quickly than traditional construction…and has a positive impact
on cash-flow.
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More of the build… is carried out under factory conditions so quality is consistent and
defects can be minimised.
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As-built thermal performance is improved, producing more sustainable buildings and
lower energy bills for residents.
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Advances in digital technologies, such as building information modelling (BIM), are
delivering increasing efficiency and flexibility, creating manufacturing blueprints from
architects’ designs.
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Planning and design are the smart ways to ensure speedy delivery
A GUIDE TO OVERCOMING CHALLENGES AND BARRIERS
The Housing Forum
September 2019
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For decades, construction has lagged other sectors in productivity performance.
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Modular construction can cut schedules by 20–50 percent and costs by 20 percent.
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Labour dynamics and demand are at the top of the list of factors driving adoption of
modular construction.
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2-D panel systems optimize logistics and offer greater flexibility than 3-D modules.
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The industry is adopting new materials as well as digital technologies that enhance
design capabilities and variability, improve precision and productivity in manufacturing,
and facilitate logistics.
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Capturing the full cost and productivity benefits of modular construction requires
mastering the challenges in design, manufacturing, technology, logistics, and assembly.
MODULAR CONSTRUCTION - from projects to products
McKinsey
June 2019
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Today’s off-site manufactured homes are characterised by their high quality, precision
engineering, digital design and eco-efficient performance, truly twenty-first century
homes. Construction within a factory environment achieves quality control that ensures
fast builds and lengthy life-spans.
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Off-site manufacturing offers the opportunity for ambitious job creation; it has the
potential to be a new industrial sector…. Making homes in this way produces significant
environmental benefits…
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Many favourable conditions are aligning in terms of proving the case that OSM can
bridge the gap between what the traditional industry can deliver and what is needed.
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Independent experts have highlighted the superior quality of the finished product over
conventionally built housing.
THE CONTRIBUTION OF OFF-SITE MANUFACTURED HOMES TO SOLVING THE
HOUSING CRISIS
LONDON ASSEMBLY
Aug 2017
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Improved energy performance of buildings presents a win-win-win opportunity, reducing
stress on the electricity network, offering bill savings and improving health and resilience
outcomes for households and businesses.
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Capturing the full potential of on-site renewables could get detached and attached
homes all the way to net zero energy
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…provide the regulatory certainty… to plan and invest time and effort in research and
development to bring new technologies to market and deliver higher building energy
performance at a lower cost.
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Maximise the potential for new construction to cost-effectively contribute to achieving a
zero carbon goal, and prepare buildings built today for the 2050 zero-carbon
environment in which they will ultimately be operating.
AN INDUSTRY LED PATHWAY TO A ZERO-CARBON READY BUILDING CODE
ASEBC, Climate Works
July 2018
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Off-site construction can increase productivity, reduce time-scales and lower build costs
compared with traditional construction
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The process of manufacturing components off-site can reduce waste, improve efficiency
and productivity, and contribute to costs savings overall.
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Off-site construction offers the opportunity to use multi-skilled operatives in factories
and on-site, which can be a more efficient and productive way of working.
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Clients predict a significant increase in the use of concrete.... over the next five years.
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Reducing the amount of time spent on-site minimises contractor risks and the
construction process is less dependent on uncontrollable factors such as the weather.
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Transition towards greater use of robotics and 3D printing strongly underpins growth of
off-site construction, and are enablers of effective DfMA.
BUILDING SKILLS FOR OFF-SITE CONSTRUCTION
Construction Industry Training Board
April 2017
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To generate additional capacity in the sector, we need new business models, supported
by new investment, and using new construction methods. This is essential to avoid
putting additional pressure on the supply of skills (thereby inflating labour costs) and to
overcome the factors which inhibit change, especially in the residential sector.
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The current pace and nature of technological change and innovation in wider society is
such that unless the industry embraces this trend at scale, it will miss the greatest single
opportunity to improve productivity and offset workforce shrinkage.
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The benefits case for cost, time, quality and predictability compared to traditional
techniques…needs to be step-changed as a structural benefit for all parties…
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…the ultimate aim should be to foster in the medium term the creation of a sustainable
domestic (housing market)…in addition to current ‘traditional’ new-housing output.
MODERNISE OR DIE - Time to decide the industry’s future
Construction Leadership Council
Oct 2016
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What we can safely assume is that there is huge scope for cost-effective projects that
would enhance …. productivity…
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Increasing productivity is construction’s great puzzle. It’s not that we don’t know how to
do it – off-site construction for example – it’s often that we aren’t clear what each part of
the industry has to do to create the conditions for success. Smart thinking about what
blocks progress could be as important as the great ideas to improve productivity –
particularly in fragmented industry segments such as housebuilding.
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Arming the construction industry for the future will connect ex-service men and women
to management level careers in construction, ensuring their skills are not undervalued.
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As the OECD states, productivity is about working smarter, rather than working harder.
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Focus must be on embracing the wider productivity benefits that flow from creating a
better, more fit-for-purpose built environment
CREATING A FRAMEWORK FOR THE INDUSTRY TO THRIVE
Chartered Institute of Building
May 2016
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Off-site construction offers an alternative to…the current construction status-quo by
promising transformational improvements across the asset life-cycle in time, cost,
quality…but most importantly…offers predictability.
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…the fabrication, modularisation and standardisation of construction processes…within
controlled factory environments…(is) a potential catalyst in meeting these challenges.
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Evidence suggests that time schedule savings of up to 60% are possible.
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The industry must acknowledge that innovation isn’t about doing things incrementally
better, it’s also, and perhaps more fundamentally, about recognising when
transformational changes to the existing model are required.
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By embracing off-site construction, we can pave the way for a more progressive, data-
driven and predictable industry, boosting…profits…
HOW OFF-SITE MANUFACTURING CAN TRANSFORM OUR INDUSTRY
K P M G
May 2016
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We need to build a lot more homes and we need to build differently to do so.
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We don’t pretend for one second that off-site technology is the only answer to solving
the housing crisis, but it can play a much greater part and should be developed and
nurtured. The resulting homes can be of a higher quality, more comfortable and warmer
than traditionally constructed homes, and of course, built far more quickly.
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Off-site methods offer advantages in terms of speed of construction on site, quality of
build, sustainability and reduced health and safety risks.
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In order to delivery anything like the number of homes needed, the housing industry
must increase in size, not from importing workers to toil in muddy fields at low
productivity levels, but by creating a functioning off-site manufacturing sector using a
well-organised workforce making higher quality products.
HOW MODERN METHODS OF CONSTRUCTION CAN DELIVER MORE AND
BETTER-QUALITY HOMES
The Housing Forum
May 2015
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The building envelope – the parts of a building that form the primary thermal barrier
between interior and exterior – plays a key role in determining levels of comfort, natural
lighting and ventilations, and how much energy is required to heat and cool a building.
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The construction of new buildings offers the best opportunity to deploy passive heating
and cooling designs, which make use of energy-efficient building materials to minimise
energy required for heating and cooling.
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Building envelope improvements can improve occupant comfort and the quality of life to
millions of citizens, while offering significant non-energy benefits such as reduced health
care costs and reduced mortality of “at risk” populations.
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Manufacturing building materials domestically (or regionally) creates jobs in local
manufacturing and raw material supplies.
ENERGY EFFICIENT BUILDING ENVELOPES
International Energy Agency - Paris
Dec 2013
The following international reports set out how technology can and
should change the way houses are constructed, covering all aspects of
MMC - productivity, off-site manufacturing, energy-efficiency, labour
force & training. HAUS endorses these initiatives to transform the
industry through digital technologies and reformed supply lines.
Summary and full reports are available to read and download on-line
or a PDF can be requested by emailing us with the title(s).
