Unlocking construction with skills and MMC

The Government’s housing plan, Delivering Homes, Building Communities 2025-2030, states that increasing construction sector capacity and adopting modern methods of construction (MMC) is key to increasing housing delivery.

While significant levels of public investment are being committed to housing, the action plan identifies that financial resources alone are insufficient to meet delivery targets. Instead, the capacity of the construction sector in terms of both workforce and productivity is presented as a key enabling factor in meeting the Government’s target of 300,000 new homes by 2030.

The Government’s approach therefore combines skills development with a shift towards more efficient construction methodologies.

Construction sector capacity

Estimates indicate that between 69,000 and 79,000 additional workers will be required to meet housing demand over the lifetime of the plan, with the exact figure dependent on the level of MMC adoption.

To address this challenge, the Government has committed to expanding the pipeline of skilled workers entering the sector. Apprenticeships form a central component of this strategy, with a target of 12,500 new apprentices per annum by 2030, representing a significant increase on current levels.

Alongside apprenticeships, the action plan emphasises the importance of aligning education and training provision with industry requirements. The development of a national construction workforce framework is intended to support a more coordinated approach to skills planning, bringing together government, education providers, and industry stakeholders.

In addition, there is a growing recognition that the nature of skills required within the sector is changing. The increased adoption of MMC requires expertise in areas such as off-site manufacturing, digital design, and advanced construction processes.

Productivity

The action plan also highlights structural issues within the construction sector that impact productivity. Approximately 97 per cent of construction firms employ fewer than 10 people, indicating a highly fragmented industry. While small- and medium-sized enterprises play an important role, this fragmentation has historically limited efficiency, innovation, and the ability to deliver large-scale projects.

To address these challenges, the Government aims to support firms in scaling up and adopting more collaborative approaches. Measures to promote lean construction practices and increased digitalisation are intended to improve efficiency, reduce waste, and enhance output.

Procurement reform is also identified as a key lever, with a new national procurement strategy expected to create a more accessible and efficient system for public projects, while encouraging greater participation from SMEs.

Modern methods of construction (MMC)

Central to the Government’s strategy is the accelerated adoption of modern methods of construction. MMC encompasses a range of innovative building techniques, including modular construction, off-site manufacturing, and the use of pre-fabricated components. These methods offer the potential to significantly reduce construction timelines, improve quality, and enhance cost efficiency.

The action plan sets a clear target that at least 25 per cent of all new social and affordable homes will be delivered using MMC. This target is intended to create a stable pipeline of demand, providing certainty for industry and encouraging investment in new technologies and processes. Public housing programmes are identified as a key driver in this regard, with the State leveraging its substantial investment to stimulate market transformation.

However, the transition to MMC presents a number of challenges. Chief among these is the high upfront cost associated with adopting new technologies and establishing manufacturing capacity. To mitigate this, the Government intends to utilise funding mechanisms, including support from the Ireland Strategic Investment Fund, to reduce financial barriers and incentivise innovation.

Standardisation and innovation

The promotion of standardised housing design is another significant element of the MMC strategy. Standardisation aims to facilitate more efficient production processes and enables greater use of off-site manufacturing techniques. The action plan indicates that standardised approaches may be mandated in certain contexts to maximise efficiency gains.

In parallel, efforts are being made to streamline certification processes for innovative construction methods. Improvements to the agrément system are intended to accelerate the approval of new technologies, reducing delays and enabling more rapid adoption across the sector. Pathfinder projects and pilot initiatives are to be supported to test new approaches and build industry confidence in MMC.

Data collection and monitoring are identified as important supports for these initiatives. The development of a national dataset on MMC usage and performance is intended to inform policy decisions, track progress, and identify areas for improvement. This evidence-based approach is seen as critical to ensuring that innovation is effectively scaled.

Linking skills and MMC

A recurring theme across the action plan is the interdependence between workforce development and MMC adoption. While MMC has the potential to reduce reliance on traditional on-site labour, it simultaneously increases demand for new skill sets.

The successful implementation of MMC therefore depends on the availability of a workforce capable of operating within a more technologically advanced construction environment.

Analysis

The Government’s new housing plan differs from its predecessor, Housing for All, in that is formalises the need for MMC adoption through the construction industry and formally acknowledges the number of skilled workers as a matter of government policy.

While challenges remain, particularly in relation to industry structure and the cost of innovation, the measures outlined represent a concerted effort to move beyond traditional construction practices.

However, although apprenticeships are to be expanded, how the demand will be fulfilled remains unclear, as there is no guarantee that these new apprenticeship places will be filled and the Government also aims to reduce immigration which could provide some of the skilled workers needed to meet the demand.

In addition, it is unclear given the continued challenges of inflation and supply chain flows, which are likely to continue amid the US-Israel war in Iran, if placing more construction requirements on new homes will result in them being affordable for the general public.