The UK prefabricated volumetric buildings market is estimated to be worth some £615 million in 2008, which represents a decline of around 6% compared to 2007. The market, excluding ‘Pods’, comprises off-site manufactured fully assembled 3-dimensional units, or modules, with two principal product sectors – cabin/accommodation units, and modular buildings. While the UK volumetric market experienced positive growth during 2007 - reflecting high levels of government expenditure in health, education and defence - the global financial crisis adversely impacted the volumetric sector during 2008 resulting in significant market downturn as illustrated above.

Key application areas for volumetric buildings include hire, defence, health care, education, hotel, commercial and industrial, and residential housing, with certain sectors performing better than others, while underlying low level growth in cellular applications – including, for example, single living accommodation, is likely to represent a positive market influence in overall terms.

Although there has been some consolidation in the volumetric market, for example Champion Inc’s acquisition of Caledonian Building Systems and Modular UK, also Algeco’s acquisition of Elliott (including Wraith), the market continues to remain relatively fragmented with many manufacturers and suppliers specialising in particular end use sectors and prefabricated processes. In addition, several companies have exited the volumetric market, including Lydney Containers, Panaloc, and Cosalt.

Distribution channels include direct to end users, or via contractors, distributors, and the hire/rental channel (including specialists and plant hire/tool hire companies) - for example Wernick and Elliott would be classified as specialists, while A-Plant and Speedy Space would be regarded as plant hire companies.

Forecasts for 2009 suggest that housing output could fall by around 25 -30% which is likely to impact adversely on the volumetric sector in the short to medium term. However, the inability of the volumetric process to penetrate on a significant scale the UK private residential housing market is now likely to be viewed as a limiting factor of volumetric, in overall terms

Current forecasts further indicate that the UK prefabricated volumetric buildings market is likely to decline in the short to medium term, before stabilising during 2010-2011, with low level recovery forecast through to 2012-2013, reaching a value of around £577 million in 2013.

In the long term, prospects for volumetric construction will be influenced by the outcome of the next Election with likely implications for the levels of education and infrastructure spending programmes. The rise in Government debt levels must impact on capital investment programmes in several key end use markets and restrict the speed of recovery in the volumetric sector in the medium term.