is the timber offsite market about to boom? Having been down this road before, as the founder of leading offsite manufacturing consultancy Mtech Group in 2000, selling to an MBO in 2008, I believe that presentations and debate at recent industry events are beginning to show a defined route back to some of the drivers witnessed post- Egan Report in 1998. But while the end game may be the same, I believe that the drivers now have a subtle but important difference.
Low-energy regulations such as the Code for Sustainable Homes and BREEAM were cited by presenters at the recent Fabric First (see p11) and Solid Wood Solutions events as key drivers to which the structural timber industry is responding well and rising to the challenges of meeting changing market demand patterns and influences.
With timber recognised as the least carbon intensive building material it is expected to take a more significant share of the low-energy construction market, outstripping the expected pace of growth in other areas of the construction market.
One of the key factors raised across both events was the challenge of delivering predicted performance in the ‘as built’ condition – ie, making sure that delivered lowenergy solutions "do exactly what it says on the tin", which is not always the case with site-based construction methods. To ensure ‘compliance’ there is an apparent mood swing firmly back to the use of more offsite manufactured solutions, thereby ensuring that factory-controlled conditions are maximised to deliver "actual intended performance".
For many years the offsite manufacturing and offsite construction mantra was very much around speed of construction and addressing the skills issues within the market, but now it would seem that an even greater opportunity exists for the timber-based offsite sector to grasp the nettle and focus on the delivery of ‘guaranteed’ low-energy buildings using offsite solutions.
It is interesting to see that after nearly five years of economic austerity and suppressed delivery of new homes, reductions in government construction of schools, hospitals and other public sector buildings that there now appears to be an element of ‘panic’ in respect of the catching up on the enormous gap that has emerged between supply and demand.
The compounded problem of lack of delivery during the recession appears to now be transitioning to a large pipeline of activity where the pressure is building and the tap is about to be opened. So is now the right time to bring new timber offsite solutions to the market?
A recently launched Offsite Housing Review report published by the Construction Industry Council would indeed suggest this, predicting that "demand will increase and that standards will rise". The report highlights the key factors which will encourage these developments; namely, clear signals that the government is committed to addressing the serious stock shortfall problem, and the provision of shortterm encouragement for the industry to invest ahead of the rising need.
The market is definitely showing higher levels of optimism amongst the timber offsite solution suppliers, with more positive signs of investment and an increase in activity levels. Add to this the recent MTW Research report that states sales of timber frame, SIPs, and volumetric timber buildings increased significantly in 2011/12, prompting further optimism for the future.
To realise the opportunity, manufacturers must seek to establish closer relationships with clients and see more comprehensive turnkey solutions as offering healthy opportunities for value growth. Concerted efforts by the industry to ensure a focus on the efficiency of the building fabric, before any other sustainable products are introduced, will pay dividends in terms of differentiation and enhancing the core product offered by timber offsite suppliers. Add to this the benefits of maximising offsite manufacturing opportunities and you have a robust proposition that traditional building methods will not match.