The UK prefabricated
frame and panel building systems market is estimated to be worth
some £320 million in 2009. The market comprises off-site
manufactured load-bearing wall, floor and roof assemblies, which
are erected on-site to form three-dimensional units. Specifically,
the market consists of four principal product sectors – timber
frame (55%), light gauge steel framing systems (18%), concrete
(21%), structural insulated panels (5%) and ‘Other products’ (1%).
There is overlap
between the frame and panel and volumetric sectors, and also the
traditional building sector, with certain manufacturers and
building projects incorporating elements from all three
construction methods.
While the market
experienced positive growth during 2007, reflecting high levels of
government expenditure in health, education and defence, the
global financial crisis adversely impacted the frame and panel
sector during 2008 and 2009, resulting in a significant market
downturn. Market performance in 2008-09 has been particularly
difficult, with a decline of over 45% over the 2-year period –
primarily due to the major decline in housebuilding.
While there has been
some consolidation in the frame and panel building systems market,
for example Laing O’Rourke’s acquisition of Bison and Hanson’s
acquisition of Structherm, the market remains relatively
fragmented, with many manufacturers and suppliers specialising in
particular end use sectors and prefabricated materials. In
addition, several companies have exited the frame and panel
market, including Goodwin Timber Frame and Milbank – though
further restructuring in the market is anticipated given the level
of downturn in 2008-10.
Key application areas
for prefabricated frame and panel building systems include
housebuilding, defence, healthcare, education, hotel, commercial
and industrial, with expansion in cellular construction and single
living accommodation applicable to many of these sectors, in
particular student accommodation.
The trend to offsite
manufacturing is set to continue in the medium to long term,
driven by environmental legislation and the need for greater
accuracy and speed of construction. Different applications will
have vastly differing requirements in terms of materials and the
level of prefabrication, but panellised systems offer significant
advantages which should help underpin specifier interest and
underlying market growth.
Current forecasts
indicate that the UK prefabricated frame and panel building
systems market is likely to stabilise during 2010-2011, with low
level recovery forecast 2012-2014 reaching a value of around £406
million in 2014. While the economy has technically emerged from
recession, the short to medium term outlook remains relatively
pessimistic and uncertain, particularly given the uncertainty over
the outcome of the General Election, with no indication of a
significant recovery in business and consumer confidence in the
UK.
