AMA Research have just published the fourth edition of the report "Prefabricated Frame and Panel Building Systems Market Report - UK 2012-2016 Analysis". Incorporating original input and primary research, this new report represents an up-to-date and informed review of this changing and complex market.
Prefabricated frame and panel building systems have a substantial market potential, with a wide range of end use sectors, and are forecast to demonstrate long term growth, although currently experiencing the adverse impact of the construction downturn.
ACP (Concrete), Ayrshire Metal Products, Beco Products, Bell and Webster Concrete, Bison Manufacturing, Boklok UK, BSW Alouette, Buchan Concrete Solutions, Caledonian Building Systems, Creagh Concrete Products, Danilith UK, Deeside Timberframe, Donaldson Timber Engineering, Fusion Building Systems, Hanson Structherm, Howarth Timber Engineering, Jablite, Kestrel Timber Frame, Kingspan Off-Site, Laing O'Rourke, Light Steel Frame Solutions, Lindab Group, M and M Timber Systems, McAvoy Group, Metek Building Systems, Metsa Wood, Metsec, Modular UK Building Systems, Oregon Timber Frame, PCE, Pinewood Structures, Prestoplan, Quad-Lock Building Systems, Quickway Buildings, Robertson Timberkit (RTK), Rollformed Fabrications, Scotframe Timber Engineering, SIP Building Systems, Space 4, Stewart Milne Group, Tata Steel Group, Taylor Lane Timber Frame, Terrapin, Thermonex UK, Walker Timber Group, Wates Construction, Wernick Group, Western Building Systems, Wood Newton, Younger Homes.
The UK prefabricated frame and panel building systems market comprises off-site manufactured load-bearing wall, floor and roof assemblies, which are erected on-site to form three-dimensional units. Specifically, the market consists of four principal product sectors - timber frame (56%), light gauge steel framing systems (17%), concrete (20%), structural insulated panels (5%) and 'Other products' (1%).
While the market experienced positive growth up to 2007 - reflecting high levels of government expenditure in health, education and defence, together with a switch to offsite techniques - the global financial crisis and reductions in government capital expenditure programmes adversely impacted the frame and panel sector 2008-2011, resulting in a significant market downturn. Market performance in 2008-2011 has been particularly difficult, with a decline of over 40% over the 3-year period - primarily due to the major decline in housebuilding and cuts in public sector capital expenditure programmes.The market is estimated to be worth some £323 million in 2011.
There is overlap between the frame and panel, volumetric and also the traditional building sector, with certain manufacturers and building projects incorporating elements from all three construction methods. The trend to offsite manufacturing is set to continue in the medium to long term, driven by environmental legislation and the need for greater accuracy and speed of construction. Different applications will have vastly differing requirements in terms of materials and the level of prefabrication but, in general, panellised systems offer significant advantages which should help to underpin specifier interest and stimulate long term low level growth.
Key application areas for prefabricated frame and panel building systems include housebuilding, MoD, healthcare, education, hotel, commercial and industrial, with expansion in cellular construction and single living accommodation applicable to many of these sectors, in particular student accommodation.
Flat pack panels are often favoured in inner city brownfield sites by minimising the building footprint and disruption, while waste minimisation is also a key benefit.
While there has been some limited consolidation in the frame and panel building systems market, the market remains relatively fragmented, with many manufacturers and suppliers specialising in particular end use sectors and prefabricated materials.
The underlying trend to single living accommodation represents a key driver for growth in the prefabricated frame and panel buildings market with high repeatability of standardised modules producing significant economies of scale - for example, student and social housing, hotels, etc. Niche sector growth opportunities include the hotel sector and infrastructure, in particular energy and rail, for example the recently reported £9.4 billion investment in the rail network. Crossrail is also likely to provide significant opportunities for prefabrication.
Current forecasts indicate that the UK prefabricated frame and panel buildings market is likely to experience flat bordering on marginal growth during 2012-2013, with low level recovery forecast through 2014-2016, reaching a value of around £370 million in 2016.