Understanding MMC’s Staggered Beginnings and Why its Future is Bright

Posted by Global V Tech on 2nd July 2022 -

Sustainability is the hot topic on the lips of everyone in the construction industry ever since the Prime Minister’s 2050 net zero target was announced back in 2019. And for good reason, too – construction makes up for 40% of this country’s emissions, so reducing carbon where possible is naturally a significant step in tackling this herculean task that we’ve been handed.

When it comes to the housebuilding sector specifically, it’s common knowledge that traditional building methods need to go the way of the dinosaur if it’s going to make a dent on these sustainability targets, and it’s also widely accepted that modern methods such as volumetric housebuilding are the way in which the sector goes about doing this. So why hasn’t MMC taken off as much as it could’ve (dare I say, should’ve) despite all of this?

For MMC, it’s about scale and viability right now. Many revolutionary concepts often don’t make their mark until years after their inception, this was the same for the light bulb and the internet, and I strongly believe it will be the same case for MMC. 

To truly understand the somewhat staggered start to MMC’s legacy, we must delve into what exactly is holding it back in the first instance. 

If you are an offsite and MMC manufacturer looking to target the UK SME house building market, then let’s talk about how we can help you.

The strange irony of MMC & the UK’s skills shortage 

One of the major factors holding MMC back from its true potential is simply the face that there aren’t enough skilled workers willing and able to participate in it. Brexit has added significant costs to employing EU migrant workers and the new generation of construction workers coming out of our schools and colleges now have their eyes set on a digital future where automation and mechanisation play a larger part in construction than humans historically have done. 

In a cruel twist of irony, the time it would take to train employees to work in an MMC environment is considerably less than it would take to train in a traditional construction environment, but because MMC hasn’t got the same steam that traditional construction does, there isn’t the same rush to get people trained in it. 

This is a significant factor in this story because of its cyclical nature – people aren’t being trained in MMC because there is more emphasis on traditional methods, and there are more people being trained in traditional methods because MMC hasn’t quite hit its stride yet. 

However, this pressure for sustainability might just be the push that MMC needed. As the saying goes, “necessity is the mother of innovation” and, as the government has rightly pointed out to us all, it is necessary for us to innovate if we want to hit net zero and curb climate change. 

It may be up to the government, therefore, to lead a skills drive towards the development of wider offsite-based MMC uptake in the industry if they truly want this goal to be met in good time, and with as few consequences in the meantime as possible. 

We’ve already known since this March’s budget that an MMC taskforce has been appointed to accelerate the delivery of offsite homes across the UK with the help of local authorities and £10m of seed funding. 

This followed the publication of a report from the government-appointed MMC champion Mark Farmer in which a target of 75,000 modular constructed homes were to be built by 2030, or a quarter of its overall 300,000 homes per year. 

Many industry experts welcomed this move from the Housing Department, citing speedy delivery, thermal efficiency, and MMC’s ability to counter a diminishing workforce. 

We also understand that the International Organisation for Standardisation (ISO) is set to develop standards for the adoption of prefab, MMC buildings in the UK which are expected to cover the basic principles of design as well as general performance, construction and installation requirements. 

If you’re an SME or self-builder and are looking for a sustainable method of construction, contact GVT here for a free consultation

MMC’s cost concerns that are slowly fading away

 

Another major factor in this, as it is with many things, is cost – now more than ever. Although volumetric construction is seeing relatively more uptake, its profit margins are slim in no small part thanks to the effects of the pandemic and Brexit. 

The rising cost of building materials and the aforementioned shortage of skilled workers means there is little wiggle room for the true implementation of MMC implementation such as volumetric construction. 

These modern methods are still in their infancy and all it takes is slightly wider use across the sector for its cost to scale accordingly with its use, but this is where another unfortunate cycle appears: MMC’s costs are unlikely to lower until it is more widely adopted, but wider adoption is only possible through lower, more appealing costs. 

There is also difficulty when finding lenders willing to offer mortgages on MMC houses built offsite without appropriate warranties and assurance schemes attached to them. However, these same lenders say that they are engaged in ensuring that insurers and stakeholders can be confident in modern methods of construction and allow more informed decisions to be made. 

In late 2020, an important milestone was reached in MMC’s mortgageability appeal when a government-backed memorandum of understanding was signed by a number of industry bodies including the National House Building Council, insurers BLP, and MD Warranty Inspection Services. 

This should create more confidence within the sector surrounding the quality and durability of MMC homes, thus making it easier to secure mortgages and insurance against them. 

Interestingly enough, industry research has revealed that MMC homes can have significantly fewer defects than traditionally built homes – by up to as much as 80% in some cases – as well as a 70% reduction in heating bills due to the airtight nature of the building materials letting out less heat. 

And so, out of everything – be it the housing crisis or Brexit, it might just be the changing climate that pushes MMC into its renaissance age, and brings the wider industry one step closer to net zero.

Global Vtech is a leading main contractor specialising in MMC. If you’re an SME or self-builder interested in working with modern methods of construction, get in touch here for a free consultation.