{"id":131438,"date":"2023-11-27T09:00:48","date_gmt":"2023-11-27T09:00:48","guid":{"rendered":"https:\/\/www.pbctoday.co.uk\/news\/?p=131438"},"modified":"2023-11-27T09:51:13","modified_gmt":"2023-11-27T09:51:13","slug":"offsite-insolvencies-the-offsite-alliance","status":"publish","type":"post","link":"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/offsite-insolvencies-the-offsite-alliance\/131438\/","title":{"rendered":"Reframing the narrative: The real story of offsite insolvencies"},"content":{"rendered":"

The UK construction industry anticipates 6,000 insolvencies in 2023, including many offsite insolvencies. Addressing systemic issues is vital for a thriving future<\/h2>\n

The construction industry has struggled with insolvencies for years and now, as the UK faces a perfect storm of factors including inflation, interest rate increases and the ongoing impact of Covid-19, reports are predicting more than 6,000 company insolvencies in the sector in 2023.<\/p>\n

Unfortunately, much of the focus is on offsite insolvencies, which perpetuates the perception that offsite building is risky instead of recognising that construction as a whole is fundamentally broken.<\/p>\n

Following a recent article posted by Akerlof,<\/a> the Insolvency Service reported in 2022 that
\nthe construction industry accounted for 19% of all company insolvencies in England and
\nWales, and of that 19%, less than 2.5% were offsite companies.<\/p>\n

Statistically, modular providers have a lower chance of going under than many other
\nparts of the market, with an average age of 16.1 years and only 21 companies going into
\nadministration in the past three years. By contrast, 84 times as many M&E businesses
\nhave failed in the same timeframe.<\/p>\n

It\u2019s clear that the industry as a whole is facing wider issues around policy, planning and skills, yet this underscores the need for change, increased productivity, legislation
\nchange and top-down contracting eradication.<\/p>\n

Offsite has the potential to succeed<\/h3>\n

The potential in the offsite industry is crystal clear and there couldn\u2019t be a better time to drive transformation, supported by new technology and the skills and expertise to
\nbring exciting innovation.<\/p>\n

However, without a genuine shift across the industry, all of this will remain nothing more
\nthan a pipedream. A change in behaviour and culture is needed throughout the sector,
\nwith a focus on long-term supply chain partnerships, value-driven outcomes and
\nrisk management.<\/p>\n

It\u2019s time to educate and inspire the workforce, capturing the imaginations of young people, and encouraging the understanding of careers in construction<\/a> beyond bricks and mortar.<\/p>\n

The UK\u2019s construction industry is critical not only for economic growth but also solving the housing crisis, which can only be achieved through a well-supported and thriving construction industry.<\/p>\n

Putting an end to offsite insolvencies<\/h3>\n

Through the Offsite Alliance\u2019s<\/a> work, we can help deliver the change the industry needs, including a guide to offsite projects, digital and sustainable curriculum teaching in industry and colleges, and a fire data matrix for improved interoperability and fire safety.<\/p>\n

The skills piece is a key focus and we want to encourage primary school children to think about the built environment and the future of construction.<\/p>\n

There is a real opportunity to challenge the narrative around offsite insolvencies and shift the focus to the need for a complete industry overhaul. With the right policies, legislation and cultural changes, a thriving construction industry can become a reality.<\/p>\n

 <\/p>\n

Gaynor Tennant<\/strong><\/p>\n

Founder<\/p>\n

Offsite Alliance<\/p>\n

info@offsitealliance.org<\/a><\/p>\n

www.offsitealliance.org<\/a><\/p>\n

LinkedIn<\/a><\/p>\n

*Please note: This is a commercial profile.\u00a0<\/em><\/p>\n

\n<\/div>","protected":false},"excerpt":{"rendered":"

The UK construction industry anticipates 6,000 insolvencies in 2023, including many offsite insolvencies. 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