Construction BUSINESS

In a recent conversation with Sharon Lynch, Business Development Manager at MHI, we gained valuable insights into the influential role that Modern Methods of Construction (MMC) is currently playing within the Irish construction sector. MHI, recognized as a prominent figure in this field, is preparing to present its state-of-the-art solutions as a sponsor at the upcoming National Construction Summit scheduled for April 18th, 2024, at Sport Ireland Campus in Blanchardstown, Dublin. While Lynch acknowledged the strengths of the Irish construction industry, citing growth in various sectors and proactive government support, she highlighted substantial challenges. These challenges include a demand that outstrips supply, an ageing workforce, and a declining interest in trade among the younger generation. Additionally, factors such as rising costs, interest rates, and levies contribute to diminished profits for stakeholders in the industry.

Here is a glimpse of the interview:

Question: What products and services does your company offer and what is its role in the Irish construction industry?

Answer: MHI offers steel frame volumetric modular homes, up to 95% complete from a safe, quality-controlled, factory environment. As we can build a typical 3-bed semi in 22 days and install in 2 days, we believe we can offer minimum A2-rated, high-specification homes up to 40% faster than other construction methods. We also offer 1/2 bed modules for temporary or permanent use, apartments/duplexes or bathroom pods.

Question: What are the key trends in the market sectors in which the company operates and how is it responding?

Answer: We see increased enquiries about our systems and requests to review designs to determine their capability with modular which we see as a key indicator that Modern Methods of Construction is now seen as an important part of achieving housing targets in this country. While we are happy to consult on existing designs/projects, our USP is speed of construction and that is most effective if housing developments are designed with modular in mind from the outset (units can always be built via other building methods if that is the strategy) or MHI are involved from the beginning of a project to consult on design.

Question: What do you identify as the key strengths of the Irish construction industry?

Answer: The industry continues to grow with so much demand in different sectors that, is not reliant on one. We have a relatively proactive Government that has made commitments to significant investment in housing, education and infrastructure.

Question: What are the chief weaknesses of the Irish construction industry?

Answer: Demand far outweighs supply in some sectors. Our workforce is ageing and fewer and fewer young people are choosing trades as a profession. Less profit for all due to rising costs, interest rates and levies.

Question: What do you regard as the main challenges facing the industry at present?

Answer: Unpredictable material costs, shortage of skilled labour and challenges with access to finance are what we see as the main challenges that directly impact our business.

Question: What are the solutions to these problems and what role will new technology play?

Answer: Modern Methods of Construction and specifically off-site can offer solutions in the form of predictable costs from the outset, sustainability, a reduced programme of work. Software such as BIM360 and QR codes have greatly helped our efficiency, Quality Control, collaboration and data collation we have reduced our incidents, and defects and generally offer a more transparent service where Design Teams can work smarter together and Clients get more instant information remotely.

Question: What do you see as the outlook for the Irish construction industry in 2024? Even more, focus on housing supply.

Answer: We know Local Governments are investing heavily in Accelerated delivery of housing units that must be on site in 2024. Social Housing Bodies are also engaging with MMC suppliers to see how units can be completed faster and smarter. We also hope there will be more access to funding for private projects.

In our conversation, Lynch painted a vivid portrait of the Irish construction industry’s strengths, illustrating its kaleidoscopic growth across diverse sectors and basking in the glow of proactive governmental backing. Yet, amidst this triumph, a symphony of challenges echoed. The crescendo included a relentless demand eclipsing the supply, a seasoned workforce facing the ravages of time, and a waning allure of trades among the younger cohorts. The backdrop was further painted with hues of escalating costs, surging interest rates, and burdensome levies, all conspiring to cast a shadow on the profits of those immersed in the industry’s tapestry.

If you’re eager to engage in real-life conversations like this, we encourage you to attend the National Construction Summit on April 18th, 2024, at Sport Ireland Campus, Blanchardstown, Dublin. Get your free tickets: https://www.nationalconstructionsummit.ie/register/