Manufacturing Outperforms the Construction Industry’s Productivity Rate

According to the Economist the construction industry has been plagued by weak production growth since the financial crisis.

Unlike the manufacturing industry which invests heavily in new technologies, the construction industry relies heavily on increased employees on the payroll.

Since 1995 the global average value added per hour has grown at a quarter of the rate of manufacturing. McKinsey claims that no other industry has done worse.

The Economist’s figures suggest that the production rates are worse in rich countries, in the USA the rates plunged by half since the 1960’s. Concerningly, the industry is worth $10trn per year. If the construction industry had of matched that of the manufacturing industry over the past 20 years it would be $1.6trn better off each year.

Modern methods of construction such as modular construction utilises technology to enable faster outputs of production.

“At Elements Europe all of our products are manufactured in a controlled factory environment using many forms of technology. Even our steel rolling machines are connected to our cad designs” Commented Nick Davies, Operations Director at Elements Europe.

Modular manufacturing enables standardisation which allows for a faster throughput that combined with technology results in greater production rates.

“We can deliver accommodation solutions at a far faster rate than traditional construction. We are currently manufacturing 20 room modules per week for one scheme we are completing in Greenwich halving the main contractor’s time on site” Added Davies.

For the construction industry to compete with the manufacturing industry it is clear that greater investment is needed in technology. In order to do so the government must incentivise construction companies to invest. Most clients want lower build costs and faster completion rates, hampering progression within the industry.

“Our clients are mainly contractors or developers who are looking to off-site construction to deliver earlier cost certainty, faster build schedules, higher levels of quality at competitive levels with traditional construction” Commented Simon Underwood, Managing Director at Elements Europe.

“We have invested heavily into our production methodologies and the latest technologies to ensure that we can provide the industry with the solutions they need” Added Underwood.

Elements Europe is a leading modular manufacturer with over a decade of experience in delivering off-site solutions to the construction industry.

Elements Europe Manufactures Modular Tool Store

Elements Europe has manufactured a modular Tool Store for its Creekside Wharf residential development in Greenwich.

The Tool Store will be moved by crane, up each floor with the install of modules so that the team have all the tools, fixing, and joining materials they need for the modules. For the team it means they won’t have to carry tools up the tower block and will therefore gain greater efficiencies.

“We are always striving to streamline tasks to make timing efficiencies where possible, the Tool Store will certainly make a huge difference to the team and our programme” commented Nick Davies, Production Manager.

Elements Europe is manufacturing and installing 653 modules to this residential development in Greenwich for client Essential Living. These modules will make up 249 apartments in total, across two towers, a 23 storey and 12 storey block.

Bathroom Pod Prototype Gets Approval

Elements Europe’s latest client The Collective has visited its manufacturing facility in the West Midlands to view a Bathroom Pod prototype for its East London PRS development at Baltimore Wharf.

Elements Europe’s design team worked closely with procurement to source products that would meet the aesthetic vision of the client and enable them to manufacture a prototype for approval.

The Collective was pleased that the prototype met its expectations and gave Elements Europe the go-ahead to commence production of all Bathroom Pods for the scheme.

In total, 595 Pods will be manufactured for the £142 million development.

“We were delighted the prototype exceeded our client’s expectations. Now procurement and production can establish a production schedule to commence and fulfil the full order”. Commented David Greasley, Design Project Leader.

Farmer Report Prompts Government Response

In October 2016 Mark Farmer published a report Modernise or Die, commissioned by the Construction Leadership Council.

The commission was prompted by concerns from housing and planning ministers as well as skills ministers that productivity and capacity in the sector is undermined by its reliance on subcontractor labour, as well as little investment in skills and innovation.

The Government has recently released a response to the report outlining how they have incorporated the findings and recommendations into policy development.

The response comments on each of Farmer’s recommendations and has influenced the measures in the Housing White Paper to support increased housing supply and has helped inform the review of the Construction Industry Training Board (CITB). The Government also announced their continuation of support for the CITB, to make it more responsive and focused.

Alongside its recommendations to Government, Modernise or Die challenges the industry to develop skills more efficiently, embrace new and more productive ways of working, ensure the quality of design and workmanship, and be more innovative. An ageing workforce, alongside the need to deliver a steep change in housing quality and output and major infrastructure improvements, highlights the importance of rising to this challenge.

Especially interesting is recommendation 8 by Farmer which focuses on off-site construction.

“Government should act to provide an ‘initiation’ stimulus to innovation in the housing sector by promoting the use of pre-manufactured solutions through policy measures. This should be prioritised either through the conditional incentives of institutional development and investment in the private rented sector; the promotion of more pre-manufactured social housebuilding though Registered Providers; direct commissioning of pre-manufactured housing; or a combination of any of the above. It should also consider planning breaks for pre-manufactured approaches.”

The Government responded by announcing over £25 billion of investment to increase housing supply. This investment is across a range of housing tenures that reflect housing needs across the country.

The Government also wants to stimulate innovation and increase the use of modern methods of construction in housing as well as;

• Stimulating growth though its Accelerated Construction programme and Home Builders Fund, as well as wider support for Custom Build, Housing Association and Build to Rent.

• Supporting a joint working group with lenders, valuers and the industry to ensure mortgages are readily available across tested methods of construction.
• Considering how the planning systems is working for modern methods of construction.

• Working with local areas to deliver growth, jobs and build local housing faster.

• Alongside the Home Building Fund, considering the opportunities for off-site firms to access innovation, and growth funding and support and the financial incentives for them to grow.

The Government is determined to ensure more houses are built quicker while maintaining quality, and is keen to work with companies like Elements Europe to achieve goals through innovative construction methods.

Kevin Arthur, Director at Elements Europe commented “The Government’s response is exactly what the industry needs for which we have Mark Farmer to thank in pinpointing timely and realistic recommendations.”

“We strive for innovation here at Elements Europe and we are really pleased that modern methods of construction is growing in its popularity to deliver quality and speed, something which the Government has clearly recognised. The future is bright for off-site construction.”

Image: BCEGI’s residential development in Salford.

Client Visit for Social Housing Development

Elements Europe has welcomed Hill Bespoke Living, Clarion Housing Group & Calford to its manufacturing facility.

The purpose of the visit was to view a prototype for its modular residential development at Orchard Village in Rainham, Essex.

Orchard Village, formerly known as the Mardyke Estate, is a housing development currently comprising of buy to let and rented units. It has undergone significant redevelopment as part of the Thames Gateway redevelopment zone.

Elements Europe will manufacture modules for 4 houses, 4 duplex apartments and 109 apartments which will be installed into two buildings, one with 6 floors and the other with 5 floors.

Elements Europe will also manufacture a modular plant room and bin store as well as stair cores, corridor cassettes and some parts of the roof structure.

One of the buildings is curved meaning that modules will be in a splice shape so to allow for the elevation’s curve, demonstrating that modular is adaptable to accommodate irregular shaped buildings.

Once complete the residential units will be a mix of shared ownership and affordable housing, welcomed additions to the housing provisions in the area.

Simon Underwood, Managing Director at Elements Europe commented “Modular is perfect for residential projects. As the need for extra housing in the UK increases, speed is key, which is what we can deliver.”

“We were delighted to welcome our clients to our manufacturing facility and we look forward to delivering this project” Underwood added.

596 Bathroom Pods for £142 million London PRS Scheme

Elements Europe has secured a contract with client The Collective to deliver 596 Bathroom Pods to a PRS scheme in Baltimore Wharf, in the Isle of Dogs, East London.

Elements Europe’s design team will work closely with its client to produce a prototype to be viewed and approved prior to the full order going into manufacture at its production facility in the West Midlands.

Bathroom Pods will be delivered to site according to a schedule which will run in line with the works of the main contractor CJ O’Shea.

The £142 million PRS scheme is a design and build luxury mixed-use waterfront residential development comprising multiple towers. There will be a 46-storey residential tower with 330 apartments as well as a 17-storey residential block featuring 91 apartments, a 21-storey Apart-Hotel with 195 serviced apartments as well as 143 hotel rooms.

Kevin Arthur, Director at Elements Europe commented: “This is an interesting and exciting PRS scheme that we are really pleased to be involved with.”

“Our Bathroom Pod solution fits perfectly with the client’s vision for the development and we look forward to delivering.” He added.

Elements Europe has previously delivered both Bathroom Pods and Room Modules for PRS schemes and is currently installing 653 Room Modules to a PRS scheme for client Essential Living on the other side of Thames, in Greenwich.

Why Modular Construction Means Improved Health & Safety

Statistics released from the Health and Safety Executive this week names construction as the most dangerous industry to work within, in the UK.

However, one of the many benefits modular construction boasts is that it improves health and safety.

Construction sites can be a chaotic place at times with potentially hundreds of tradesmen working alongside each other on various tasks. Each have their own agendas, therefore some simple health and safety measures can be over looked.

However, at Elements Europe’s manufacturing facility in the West Midlands, each project is meticulously planned, and each module is produced one by one each with specific tasks to be complete within a specific time frame.

For our workers this means that everyone is working efficiently to ensure that their tasks are complete at the right time in the right place and because one module is focused on at a time, concentration is improved.  All workers are clear as to what their co-worker is doing alongside them and tasks are repetitive for each module, therefore the chance of any accident is reduced.

Weather and seasonal changes can play a dangerous role on building sites with slippery surfaces and dark evenings restricting visibility. However in the factory environment of modular construction these issues are eradicated. The projects programme also benefits from a factory environment, as no matter what the weather, the same tasks get done, something that can’t always be said for traditional construction.

Accidents from working at height accounted for 60% percentage of injuries on-site during 2015-2016, however with room modules no taller than 3 metres high and all employees involved in any work at height within Elements Europe’s factory receive extensive training via an accredited provider prior to undertaking any work at height, this potential risk is eradicated.

Juliet Powell, Health and Safety Manager at Elements Europe commented “We continually monitor all manufacturing processes to ensure the very best health and safety practises are being followed and to promote a positive health and safety culture throughout the site.

“This is a much more measurable task than on-site health and safety practice as workers follow standardised work flows, have their own specialisation, understand their duties and understand their surroundings, meaning fewer accidents”. Juliet added.