A definition and valuation of the UK offsite construction sector

Taylor, M D (2010) A definition and valuation of the UK offsite construction sector. Construction Management and Economics, 28(8), pp. 885-896. ISSN 1466433X

Abstract

The offsite construction sector is now established as a significant contributor to the delivery of UK construction industry output. The exact value of this contribution is questionable and has been subject to substantial debate in recent literature. Existing offsite construction sector valuation methodologies have been based upon market research questionnaires and estimates of turnover and manufacturing output. Considerable attention has been given to the definition of the terms used to describe the various constituent technologies and manufacturing processes. However there has been limited reference to its size, sector classification, employment statistics and value added to the UK gross domestic output. A method is presented for the determination of the UK offsite construction sector gross output and value added. Historical data for the period 1998 to 2008 with growth forecasts up to 2013 are offered. A breakdown of the sector, examining the common standard industrial activity classification codes (SIC), the gross output and value added for each sub-sector is provided. The results show that there has been significant underestimation of the gross output and value added when compared to previous studies. An understanding of the broad and diverse nature of the offsite construction sector is provided with data that demonstrate an overview of the sector's historical performance. The data will assist government and industry in benchmarking, market research and forecasting the further growth and diffusion of offsite construction techniques.

Item Type: Article
Uncontrolled Keywords: gross output; offsite construction; prefabrication; value added
Index terms: statistics, estimate, prefabrication, construction industry, manufacturing process, employment, forecasting, construction sector, benchmarking, methodology, questionnaire, market research, turnover
Subjects: management, manufacturing engineering, performance measurement, research methods, market analysis, building construction, industry analysis, data collection methods, mathematical modelling, business management, financial and cost management, prediction and forecasting
Topics: Human Resources, Quality Management, Business Strategy, Cost Management, Engineering Principles, Research Practice, Construction Technology
Descriptive scope: 4 PCTA

N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here