In today’s news, we will look into the Chief Executive Officer of the Starship Group, Dave Dargan, who discusses why he strongly feels that expanding familiarity with modular building in housing hubs is essential in order to fulfil the government’s commitment to building 1.5 million homes. During this period, the most recent monthly survey of construction buying managers found that there is less certainty surrounding the expansion of the industry’s output, even though it is still occurring.
Reasons Why Homebuilding Skills Hubs Should Teach Modular Construction to Solve the Housing Problem
Original Source: Why teaching modular construction in homebuilding skills hubs is key to solving the housing crisis
Dave Dargan, CEO of the Starship Group, explains why he believes increasing familiarity with modular construction in housing hubs is crucial to meeting the government’s 1.5 million home pledge.
The commitment of this new administration to constructing 1.5 million new homes during its premiership has been a central theme throughout its tenure. However, without further funding to address the persistent lack of construction industry talent, I have long wondered how such a lofty objective could ever be accomplished. A growing skills deficit has been exacerbated by the long-term flight of highly trained workers from the industry.
The recent announcement by the government to allocate £140 million towards the creation of 32 specialised Homebuilding Skills Hubs is encouraging. A much-needed emphasis on creating a future workforce is signalled by this plan, which seeks to establish 5,000 new apprenticeship spaces a year in the construction industry. With proper execution, this plan has the potential to cause a seismic shift in the market.
But it will only work if these centres provide the kind of practical, hands-on training that encourages and supports young people to seek out construction-related jobs. The government’s growth mission may be advanced through these hubs, which offer a once-in-a-generation chance to transform the workforce and the way we think about homebuilding. Apprentices learn important skills that increase homebuilding.
A New Era in Home Building: Modular Construction
Thanks to its affordable prices and minimal environmental effects, modular homebuilding has gone from being a niche idea to a disruptive force in the business. This is where the housing market is headed. Modern methods of construction enable precision and sustainability that traditional methods simply cannot match by building homes in factory-controlled settings. Modular building allows for the mass production of high-quality dwellings at a time when demand exceeds supply.
Modular building is still not widely taught in schools, even though it has many benefits. The suggested skill centres should focus on teaching modular techniques to fill this need. With this emphasis, we can be sure that the construction industry’s future leaders will be prepared to accept and implement novel solutions.
The impact of Homebuilding Skills Hubs on the next generation of workers
We must seize the chance to reevaluate our approach to exposing young people to construction jobs through the Homebuilding Skills Hubs, which are supported by the government. Training centres should now incorporate instruction in digital tools and the technologies used in modular home manufacturers, in addition to the more conventional trades of carpentry and bricklaying. This method does double duty: it attracts tech-savvy youth who would not be interested in working on a conventional construction site and prepares them for the dynamic and ever-changing construction sector.
These centres must revolve around hands-on experience. Practical experience in modular manufacturing is essential for students to understand the complexities of sustainable design, prefabrication, and assembly. Collaborating with modular developers such as Starship can offer priceless hands-on experience, connecting theoretical knowledge with practical implementation.
The creation of a resilient and future-proof workforce is just as important as reaching housing targets when investing in modular homebuilding processes. Engineering, architecture, project management, logistics, and a keen awareness of sustainable building principles are all necessary for modular construction. One way to increase the number of qualified applicants is to incorporate these fields into the Homebuilding Skills Hubs that the government has established. The government’s levelling-up plan is in line with the focus on modular housing because big companies are typically located in areas that need regeneration. This allows the creation of jobs and boosts local economic growth, which may be capitalised on by the next generation.
The government’s goal to “power up Britain” is in perfect harmony with its emphasis on modular housing because many major factories are located in areas that are ideal for redevelopment. There is a chance that these factories will provide employment, boost the economy of the area, and give the following generation a leg up in regenerated neighbourhoods.
Reaching housing goals through creative means
One of the biggest problems we’re facing right now is the housing market. In addition to ambition, investing in the future generation of building workers is essential if the goal of 1.5 million new homes is to be achieved. We need to make modular construction a priority in these Homebuilding Skills Hubs if we want to develop houses that are sustainable and future-proof.
The initiative’s success is dependent on how it is carried out. To make sure the next generation has the skills to fill the gap, the government should prioritise modular techniques. These Homebuilding Skills Hubs can strengthen the construction industry so it can produce sustainable communities that will last for years to come if they work together.
Construction Recovery Slows
Original Source: Construction recovery loses momentum
According to the most recent monthly survey of construction buying managers, there is less clarity about the industry’s output growth, but it is still happening.
For the third month in straight, new orders slowed in December 2024, and overall construction activity grew at its slowest rate since last June.
After hitting a six-month low of 55.2 in November, the headline S&P Global UK Construction Purchasing Managers’ Index (PMI) fell to 53.3 in December. The index, however, has been trading above the critical 50.0 no-change mark since March 2024.
Although all index values were lower than in November, commercial activity grew at the greatest rate in the construction sector in December (55.0), followed by civil engineering (52.9). Since the survey is adjusted for the season, it does not take into consideration the fact that many sites were offline in December for the holiday season.
Once again, the only category to see a general decrease in December production was residential work (47.6). The most recent decline in home construction activity was the quickest since June 2024, and it has now occurred for three months in a row. Weak consumer confidence, high borrowing rates, and muted demand were the factors that influenced the survey takers’ perceptions of the state of affairs.
Total new work grew at its weakest pace since June of last year, reflecting the pattern for output quantities. Despite an uptick in commercial construction bidding prospects, residential development projects have been reduced, and there is a dearth of new businesses to replace finished infrastructure projects, according to anecdotal evidence.
In response to slower new order growth, construction companies cut back on input purchases for the first time in eight months, according to the poll. There were cases where stricter inventory management was associated with less buying activity. In December, there was little change in the delivery timeframes reported by suppliers. There were reports of lengthier lead times for imported commodities caused by shipping delays, but some firms also noticed improved vendor performance as a result of lower demand.
Subcontractor utilisation fell for the fourth consecutive month in December, according to the data. Subcontractor availability increased at its slowest rate since March 2023, despite a decline in demand for their services.
Subcontractor rates have been rising at their quickest rate in 20 months, according to recent data. Input cost pressures were already building when consumer prices rose at a rate just slightly slower than November’s 18-month peak. The reasons mentioned for the delay in personnel hiring have been elevated cost inflation and growing salary payments. There was no improvement in the rate of job creation compared to the average before the pandemic.
For the year 2025, around half of the survey takers expect production to go up, while only a quarter expect it to go down. Although the level of optimism has increased significantly since November, it remains significantly lower than what was observed in the first half of 2024. While most construction companies expressed confidence about their plans for future growth, many also voiced concerns about the UK economy as a whole and reduced capital expenditure budgets.
“December data highlighted a loss of momentum for construction output growth, with all three main categories of activity posting weaker performances than in the previous month,” commented Tim Moore, economics director at S&P Global Market Intelligence, the organisation responsible for conducting the monthly survey. After civil engineering, commercial building continued to be the fastest-growing sector of the construction industry. The residential sector, on the other hand, saw its steepest monthly decline since June 2024.
“As seen by a further decrease in new order growth during December, the slowdown in overall construction output growth in recent months reflects more muted demand conditions. High borrowing prices and shaky consumer confidence were mentioned as obstacles by survey takers.
There were indications of tight supply circumstances, although staff recruiting has stepped up since November. Since March 2023, subcontractors’ availability has improved to a lesser degree, but their rates have climbed at the fastest pace for little more than 1.5 years.
Predictions for the building industry’s growth in 2025 were dampened by worries about the demand forecast. Despite a rebound in November following a post-budget dip, confidence remained significantly lower than it had been in the first half of 2024. Numerous businesses voiced their concerns about the UK economy’s bleak forecasts and cuts to capital expenditure.
“The industry is still benefiting from the government’s investment in infrastructure but at the same time is hampered by still historically high interest rates and an uptick in employment costs,” commented Brendan Sharkey of accountancy group MHA, who specialises in real estate and construction. Thus, it is not surprising that construction PMI has fallen.
“While business activity is still robust, the housing market has seen a decline. The possibility of development is evident in light of the planning reforms incorporated into the current NPPF (National Planning Policy Framework), although it is unclear whether the housing market will experience a turnaround this year. There have been more vulnerable industries in 2024, but the building industry has held its own. Unlike manufacturing and other industrial sectors, which are dependent on the global economy, construction demand is largely domestic.
Our clients are telling us that 2025 will be a slow burner, but better than last year. The government’s investment plans bode well for infrastructure and commercial sectors, as the UK is attracting more and more investors. Assuming borrowing rates do not budge, the supply of homes will be sufficient; the question is whether demand will follow.
The industry will still feel the effects of rising wage prices and interest rates, but the good news is that more investment from outside could help alleviate some of those problems.
For most of 2025, we anticipate that construction PMI will remain rather stable, with brief increases being the norm. There is an atmosphere of quiet optimism, and while development will be moderate and steady, the fundamentals of the industry are robust.
Summary of today’s construction news
Overall, we discussed a promising development as the government’s recent declaration that it will invest £140 million to establish 32 specialised Homebuilding Skills Hubs. With an annual goal of adding 5,000 additional apprenticeship spots in the construction industry, this strategy signals a much-needed commitment to building a workforce for the future. This strategy could trigger a dramatic change in the market if carried out as intended. However, once again, only residential work (47.6) saw an overall decline in December productivity. Home construction activity has been declining for three months in a row, with the most recent fall being the sharpest since June 2024. Respondents’ assessments of the current situation were coloured by factors such as low consumer confidence, high borrowing rates, and dampened demand.
