Growth following Covid-19 for Prefabricated Volumetric Building Systems
It is with no doubt that the Covid-19 Pandemic has taken its toll on many sectors in the UK. With businesses shutting down temporarily to assist with stemming the spread of the virus the economy took plummet through March to July. However, our research has concluded that not all is to be lost and there are sectors that’s will show the potential to grow from the pandemic itself.
One sector that we have pinpointed is the Prefabricated Volumetric Building Systems Market. Alex Blagden, Editor of the report and researcher at AMA Research comments “The outlook for the volumetric building systems market remains difficult to predict given the lack of published data in this sector and the continued uncertainty, not only the construction sector but also the wider UK economy. Steady growth in this market is expected over the next few years to 2024, underpinned by the increasing use of off-site construction methods to help meet the chronic housing shortage and cope with the lack of traditional construction skills”.
Growth for this sector in 2019 was mostly down to the strong demand for accommodation and temporary units, supported by increasing levels of road building and maintenance activity, a buoyant railway construction sector, the Hinkley Point C nuclear power plant programme, other infrastructure projects and housebuilding.
The Volumetric building systems sector is not however immune to the effects of the pandemic. The market is still expected to fall sharply in 2020 along with construction activity across all sectors, with the exception of healthcare and infrastructure. Because these two have been less impacted than other end-use sectors, it is assumed demand for volumetric units here will partly offset the downturn elsewhere.
Once the Covid-19 pandemic is over, there are several factors that are expected to underpin a return to growth. These include an increasing number of public sector procurement frameworks, that include systems suppliers and an increase in the use of Building Information Modelling. There is also now a probability of an increase in the use of volumetric systems, and other types of offsite technologies, as a solution to the chronic shortage of affordable housing and also the ongoing shortage of skilled building tradesmen.