House builder Barratt Developments has revealed it is stepping up offsite construction to offset the impact of labour shortages within the industry.
The group stated that while it has seen an overall increase in the supply of skilled subcontractors over the past year, there still remains an industry shortage in the UK.
Dave Thomas, Barratt chief executive, said while the company was well placed with the necessary labour to meet its operational and quality requirements, they were also seeking to increase efficiency through the use of timber frame and alternative offsite manufacturing options. It is anticipated it will use timber frame on around one tenth of its output.
Speaking to Construction Manager, Thomas, said: “One of the challenges facing the industry over the next few years is the shortage of labour and skills. Barratt is taking a steps to deal with this issue by investing in our workforce and taking on apprentices, graduates and trainees – more than 1,000 in the last three years – and investing in off-site and modern methods of construction.
“As part of our investment in offsite construction we are looking to increase our use of alternative structures such as timber frame and also trialing other methods like light gauge steel frame. It’s a careful process to ensure that quality doesn’t suffer and that there are real efficiencies created.” The firm has already carried out a successful trial of light gauge steel construction.
The house builder laid out its plans for more offsite as it reported record profits for the year – up 21% to £682m in the year to June. Total completions including affordable homes edged up 5.3% to 17,319, with average selling prices up 10% to just below £290,000. Thomas said demand in London remained strong in price points up to £600,000, but warned sales had slowed on higher end apartments.
Barratt also revealed it had tied up fixed price deals with material suppliers until mid-2017 on 75% of its key materials and expects overall build cost inflation for 2017 to fall back to 2-3%.
