Why build homes in a new way?
Social Rent Housing playbook series
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Image courtesy of ZEDPODS
The first component of the ecosystem solution is building homes in a new way. This will require incubating a new supply chain of factory-manufactured (MMC) homes.
The rationale for this is twofold:
Firstly, this new supply chain provides a pivotal opportunity to support the transition to a more industrialised construction sector unlocking numerous societal benefits (see the case for change in the construction industry opposite). By building homes in a new way, local authorities can therefore deliver new homes while also supporting the UK to develop world-class industrialised construction capabilities.
Secondly, factory-manufacture relies upon a fundamentally different business model to the current supply chain (which ordinarily generates profit by maximising land value through successful planning applications and controlling supply). For MMC suppliers, the business model relies on production output - in this instance supplying homes at scale - irrespective of land-value uplift and tenure.
The emphasis on desirable output, makes housing manufacturers key allies for housing commissioners seeking delivery at scale and pace.
The role of LAs in incubating a new supply chain
It is critical for local authorities to commission homes in a new way to aggregate demand to support a manufacturing- led approach. If requirements and specifications continue to vary from client to client and project to project, it will remain necessary to employ highly variable, unpredictable production models.
An industrialised construction sector brings with it new roles, new organisations and new ways of working. Engaging with this new sector in this formational stage is an opportunity for the public sector to influence the culture, values and direction of travel of this emergent industry and reap the benefits of building homes in a new way.
What is industrialisation?
Industrialisation is the process of transforming a sector from one primarily based on manual labour and craftsmanship to one characterised by mechanised production, advanced technology, standardised processes, and increased efficiency.
The case for change in the construction industry
The industrialisation of housing delivery offers an opportunity to address many of the sector’s challenges including poor safety practices, inefficient use of resources, high levels of rework and more - all of which add cost and erode quality. Read more about this from global engineering, management and development consulting firm Mott MacDonald.
By contrast, a meaningful shift towards the maximisation of repeatable systems, processes and relationships will drive continuous improvement in both housing quality and project performance. It will also create sustainable jobs and forge the sector’s path to Net Zero. Read more about this from Ron Lang, Regional Director of AtkinsRéalis.
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As you engage with the Playbook, we encourage you to reach out to the contributing organisations to inform your learning. No single organisation’s product, process or passion can fix the problem. Change will come through creativity, collective wisdom and the will to roll up our sleeves, get involved and work together to do things differently!