A new report has called for the UK's construction sector to be radically transformed to embrace more off-site manufacturing (OSM).

The 'Off-site Manufacturing for construction: building for change' report by the House of Lords Science and Technology Committee states OSM can help to increase productivity in the construction sector while reducing labour demands, improving the quality and efficiency of buildings, and reducing the environmental impacts associated with traditional construction.

However, the Committee said take up of OSM is varied and somewhat limited across the sector because industry is working with out-dated and unsustainable business models that are not conducive to OSM for construction.

OSM requires collaboration between clients, designers and contractors from an early stage, but the Committee said much of the evidence it received painted a picture of a construction sector that is fragmented and lacking in trust.

The report states: "There are clear and tangible benefits from off-site manufacture for construction which make a compelling case for its widespread use. These include;

• Better quality buildings and infrastructure

• Enhanced client experience and faster delivery

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• Fewer labourers and increased productivity

• Creating more regional jobs away from large conurbations

• Improved health and safety for workers

• Offering building safety advantages—making it easier to ensure buildings meet quality assurance standards

• Improved sustainability of buildings and infrastructure; and

• Reduced disruption to the local community during construction

Lord Patel, Chairman, said the Committee heard evidence that OSM "could increase productivity in the sector by up to 70%".

"The construction sector's business models are no longer appropriate and are not supporting the UK's urgent need for new homes and infrastructure," he said.

"The construction sector needs to build more trust and create partnerships so that companies can work together to improve the uptake of off-site manufacture, and the Construction Leadership Council should provide the necessary leadership."

One of the key findings of the report recommends the Government ensure young people entering the workplace are equipped with the digital skills needed for modern methods of construction, including off-site manufacture, as the different skills required for manufacturing are currently lacking in the UK labour market. In addition, as the Government's Construction Sector Deal states 'presumption in favour' of OSM, Ministers should develop and publish a series of Key Performance Indicators against which the success of the 'presumption in favour' can be assessed.

Furthermore, evidence heard by the Committee suggested that to achieve the Government's target of 300,000 homes a year by 2020, OSM would be the only way to meet this target as traditional construction methods do not have the capacity to build enough homes. Government must also set out what conditions it will attach to the extra financial support for housing to drive the uptake of off-site manufacture and other innovative technologies.

Lord Patel said: "The role of the Government and the wider public sector is pivotal in a move to greater use of off-site manufacture. The report sets out actions that the Committee thinks the Government should take including implementation of the Construction Sector Deal, committed execution of the 'presumption in favour' of off-site manufacture and a greater move to procuring for whole-life value rather than lowest cost."

(LM/MH)