AMA Research have published the third edition of the report “Prefabricated Volumetric Buildings Market - UK 2009-2013”. Incorporating original input and primary research, this new report represents an up-to-date and informed review of this changing and complex market. Prefabricated volumetric buildings have a substantial market potential, with a wide range of end use sectors, and are forecast to demonstrate long term growth. This report excludes pods, frame and panel prefabricated buildings, and prefabricated structural framing which form the subject of other reports in AMA’s series about prefabrication.

Key issues covered include:

• Market Size & Structure - Market value, trends, forecasts for future growth, key influencing factors etc.
• Product Mix - Cabin/Accommodation units, modular buildings.
• Key End User Sectors - Analysis of end user sectors, including commercial and industrial, residential, healthcare, education, MoD, hotels, hire, prisons, asylum accommodation centres, etc.
• Major Suppliers - Market share, market position, relative end user strengths and profiles.
• Distribution - Major channels of distribution.

• Future growth prospects - short term prospects in 2009-10 and longer term prospects up to 2013.
• Major suppliers shares of the UK prefabricated volumetric buildings market - changes in market structure.
• Review of key end use markets including the hire sector, housebuilding/growth in flats, MOD, student accommodation, health, education, hotels, etc.
• Comparison of frame and panel, and volumetric prefabrication.
• Trends to productivity improvement - growth of MMC/OSM.
• Value-added development opportunities.

• Atco Structures Inc, Ayrshire Metal Products, Britspace Modular Buildings, C3S Modular Buildings, Caledonian Building Systems, Clean Modules, Composite Ltd Consafe Engineering Services, Corus Living Solutions, Cosalt Holiday Homes Ltd Eldapoint, Elliott Group, Fusion Building System and Pods, Futureform Design and Build, Gateway Fabrication, GB Industries, Genset Plc Supply, Home Factory, Hunter Building Systems, Kingspan Offsite, Lydney Containers Ltd, McAvoy Group, Metek Building Systems, Modular UK Building Systems, Panaloc Worldwide Manufacturing Ltd, Pathfinder Park Homes, Portakabin, Precast Cellular Structures Ltd, Ravenstock MSG, RB Farquhar (Holdings), Rollalong, SGB Rovacabin, Shepherd Building Group, Sibcas, Spaceover, Stackright Building Systems, Terrapin Ltd, The Forge Company London, The Omar Group, Wernick Group, Thurston Building Systems, Ultra Secure Products, Unite Group, Verbus Systems Ltd, Vision Modular Structures, Waco UK, Western Building Systems.

• THE MARKET
• Total Prefabricated Volumetric Buildings Market 2006-2013 - market analysis by value and forecasts.
• Key influencing factors affecting market growth - level of construction and manufacturing activity, trends to flats, affordable homes, quality issues, trends leading to increased demand for prefabricated volumetric buildings in key sectors e.g. healthcare, education, MoD, prisons, hotels, asylum/immigration centres etc.
• Prefabricated Volumetric Buildings Product Mix - analysis by product type - cabin/accommodation units, and modular buildings - changing trends and future prospects.
• Major channels of distribution - contractor, installer, architect, specifier, etc.
• Key areas of end user growth, and forecasts for product mix in 2013.
• END USER SECTORS
• Mix of key end user sectors by value in 2008.
• Key end user sectors - Reviews of major end user groups and subsectors e.g. Commercial and Industrial, Education, Health Care, residential, MoD, retail, hire, hotel/catering, prisons, asylum centres, etc.
• Key future trends for the usage of prefabricated volumetric buildings, future growth potential of the sector, product issues, forecast product mix in 2013 etc.
• Key suppliers to the various end user sectors.
• Influencing factors of future end user growth potential, e.g. trends in capital expenditure and accommodation requirements, major changes in health and education, impact of PFI/PPP, Olympic Games etc.
• MARKET/PRODUCT SPECIFICATION ISSUES
• General trend towards OSM (Off-site Manufacturing) to improve quality standards and address problems of site-skills shortages.
• Review of fixtures, fittings and components including trends to modularity and sustainability.
• Review of broad levels of specification in end user sectors.
• SUPPLY AND DISTRIBUTION
• Market shares of the major suppliers in the prefabricated volumetric building market - 2008 by value. Recent changes and future prospects in market structure.
• Profiles of major suppliers including turnover, market positioning, brand names etc.
• Review of the key channels of distribution used by leading suppliers - direct supply, hire etc.
• Key end user sectors of individual suppliers and future growth potential etc.

The UK prefabricated volumetric buildings market is estimated to be worth some £615 million in 2008, which represents a decline of around 6% compared to 2007. The market, excluding ‘Pods’, comprises off-site manufactured fully assembled 3-dimensional units, or modules, with two principal product sectors - cabin/accommodation units, and modular buildings. While the UK volumetric market experienced positive growth during 2007 - reflecting high levels of government expenditure in health, education and defence - the global financial crisis adversely impacted the volumetric sector during 2008 resulting in significant market downturn as illustrated above.

Key application areas for volumetric buildings include hire, defence, health care, education, hotel, commercial and industrial, and residential housing, with certain sectors performing better than others, while underlying low level growth in cellular applications - including, for example, single living accommodation, is likely to represent a positive market influence in overall terms.

Although there has been some consolidation in the volumetric market, for example Champion Inc’s acquisition of Caledonian Building Systems and Modular UK, also Algeco’s acquisition of Elliott (including Wraith), the market continues to remain relatively fragmented with many manufacturers and suppliers specialising in particular end use sectors and prefabricated processes. In addition, several companies have exited the volumetric market, including Lydney Containers, Panaloc, and Cosalt.

Distribution channels include direct to end users, or via contractors, distributors, and the hire/rental channel (including specialists and plant hire/tool hire companies) - for example Wernick and Elliott would be classified as specialists, while A-Plant and Speedy Space would be regarded as plant hire companies.

Forecasts for 2009 suggest that housing output could fall by around 25 -30% which is likely to impact adversely on the volumetric sector in the short to medium term. However, the inability of the volumetric process to penetrate on a significant scale the UK private residential housing market is now likely to be viewed as a limiting factor of volumetric, in overall terms

Current forecasts further indicate that the UK prefabricated volumetric buildings market is likely to decline in the short to medium term, before stabilising during 2010-2011, with low level recovery forecast through to 2012-2013, reaching a value of around £577 million in 2013.

In the long term, prospects for volumetric construction will be influenced by the outcome of the next Election with likely implications for the levels of education and infrastructure spending programmes. The rise in Government debt levels must impact on capital investment programmes in several key end use markets and restrict the speed of recovery in the volumetric sector in the medium term.

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