In 2017 the bathroom and kitchen PODs market saw strong levels of both volume and value growth. There has also been some growth in demand for higher specification PODs in the luxury apartment and upmarket hotels sectors, which has contributed towards value growth. Year on year growth in both values and volumes has been driven by increasing demand in the main end-user markets; purpose-built student accommodation (PBSA), hotels and apartment blocks.
Overall demand for PODs has been driven by a combination of factors including; demand for design standardisation and fast-track construction of PBSA, budget hotels and social housing; ongoing shortages in key skills e.g. roofing, bricklaying, electrical installation; sites where there is restricted space for storage and large numbers of workers.
There is speculation that one of the key results of the Brexit process may well be the exodus of many skilled tradesmen, especially those from Poland and other Eastern European countries. In turn this is likely to lead to resource bottlenecks in the construction industry and this will force many contractors and developers to seek alternative construction techniques such as off-site manufacture. This could benefit the PODs market.
The impact of ‘Brexit’ notwithstanding, demand for PODs should grow steadily, there being quite robust development pipelines in the main markets. Over the next five years, it is anticipated demand for PODs could grow steadily, there being reasonably strong construction pipelines in key end use sectors, although the uncertainty surrounding the Brexit negotiations may have some negative impact on demand.