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Posts Tagged ‘Mark Farmer’

London Explores “PreFab Revolution,” and the U.S. Connection

September 7th, 2017 Comments off
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Featured image credit, Culture Trip.

Offsite Manufactured Housing is an innovative, forward-looking and exciting way to close the gap,” said Nicky Gavron, author of the London Assembly report, per Construction Enquirer.

Prefabricated housing is about to make a major comeback in London, England. A recent London Assembly report calls on Mayor Saqid Khan to encourage manufactured housing.

This timely report sends an unequivocal message to the Mayor of London that now is the time to show strong political leadership to establish a mainstream precision manufactured housing market in the capital,” said Mark Farmer, chief executive of Cast Consultancy and author of last year’s Farmer Review, per Construction Enquirer.

It appears that the message has been heard as the Deputy Mayor for Housing and Residential Development James Murray says Khan plans to support the idea of manufactured housing.

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Mayor Saqid Khan (top), Mark Farmer (left), Deputy Mayor for Housing and Residential Development James Murray (right). Image credit, SP Broadway, YouTube. Pulse Headlines.

The Mayor’s draft London Housing Strategy, which will be published next month, will set out the Mayor’s further plans to support much greater precision manufacturing of homes,” Murray said.

The Daily Business News has previously reported on the growing prefab movement in the U.K., which includes conglomerate Legal & General (L&G) and their new factory outside of Leeds. The first of their prefab homes rolled out in August, and was placed and installed on site in Richmond in a matter of hours.  The

U.S. Factory Building Connection…

L&G was previously reported as having a stake in U.S. based Cavco Industries.  Is there something there to watch on this side of the Atlantic?

Legal & General

 

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L&G prototype modular home, credit, LandlordNews.

These buildings are high quality and outstanding in terms of performance,” said Gavron.

Their construction is more environmentally-friendly than traditional construction methods and they are a far cry from their prefabricated predecessors,” Gavron explained. “Few will disagree that using vacant public land to build homes quickly and with less pollution and disruption could be great news for London, tailored to demands at every price point.”

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Nicky Gavron. Image credit, London.Gov.UK.

There is a target need of 50,000 new homes each year, per Homes and Property.

The L&G Homes factory is expected to produce around 3,000 homes per year. Builders are saying that Offsite Manufactured (OSM) Homes can be built in as little as 20 weeks.  U.S. readers are reminded that British terminology may not always be the same as ours.

Gavron, Farmer, and others believe that prefab, modular and manufactured housing are clearly a solution to the current housing demands, per Construction Enquirer.

It could underpin ambitions not just for housing, but for wider economic growth,” Farmer said.

The Daily Business News has also previously reported on the lack, of not just housing, but of affordable housing, in London. The use of modular, prefab and manufactured homes would free up more money that can be used in other parts of the economy for overall growth.

This is a once in a generation opportunity to work collaboratively with investors, developers and policy makers at a time where experts, central and local government are all calling for the same thing to happen,” Gavron said. ## (News, analysis.)

(Image credits are as shown above, and when provided by third parties, are shared under fair use guidelines.)

JuliaGranowiczManufacturedHomeLivingNewsMHProNews-comSubmitted by Julia Granowicz of the Daily Business News for MHProNews.

 

 

Legal and General Reveals Secret for Modular, Prefab Lending

February 9th, 2017 Comments off
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Legal & General factory. Credit: Legal & General.

The survey arm of insurance giant Legal & General believes it has the answer for bringing the mortgage market on board with prefab and modular home lending.

An industry-wide guarantee would help bring everyone to the market but, of course, their appetites will differ according to the requirements of their own lending policies,” said a Legal & General spokesman.

There are many ways of reassuring mortgage lenders that homes constructed offsite are reliable enough to lend on.

But not least is the need to establish an industry kite mark such as Build Offsite Property Assurance or the National House Building Council which offer independent assurance around the design life of the homes.

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Credits: Legal & General, Cavco, Open Clip Art.

Legal & General, which owns a modular housing factory capable of building 3,000 homes per year in Leeds, U.K., has been active in the manufactured, modular and prefab industries, including increasing its stake in builder Cavco Industries.

Speaking on the Farmer Report by Cast CEO Mark Farmer in November, which called out modular housing as a solution to the U.K. housing crisis, Paul Stanworth, managing partner at Legal & General, commented on the company’s plans.

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Paul Sanworth. Credit: UK Infrastructure Investment.

This review sets out a clear way for the construction sector to reinvent itself in order to meet the ever-growing demand for homes and infrastructure,” said Stanworth.

Legal & General is helping to address this problem by investing in a modern factory to produce homes using manufacturing processes seen in the production of cars and other consumer goods.

This construction method is safe, clean, and fast, providing a high level of consistency and durability. We sincerely hope that Farmer’s review galvanizes the entire sector to invest in innovation and secure its future.

According to Mortgage Introducer, Legal & General Surveying Services has been helping lenders understand risks and opportunities with visits to development sites that use modern methods of construction and by having speakers talk to property risk managers. It has also invited lenders to its factories.

The government also supports offsite construction and hints that a soon to be published housing white paper may increase that support,” said the spokesman.

The government will be keen to use these homes to fulfill the need in our cities as well as new towns. We see offsite construction as part of the wider solution to the housing crisis, and these buildings are particularly well suited to delivering affordable homes – the very kind of property we need most.

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Credit: Mortgage Introducer.

While critics of prefab homes in the U.K. often negatively compare them to ones built after World War Two, Legal & General says that the modern construction is very different.

Post-war, the key was to house people. Now the materials used must come with quality assessment so the properties can be mortgaged from the outset,” said the spokesman.

Also the quality of build and the features and specifications available are light years away from previous incarnations. New techniques are likely to be higher quality than traditional techniques because they are precision engineered.

Much like the automotive industry, the technology and features available now are unrecognizable to the post-war period.”

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Credits: Companies, England Net.

For more on modular and prefab housing in the U.K., including China National Building Material Company (CNBM), Barcelona Housing Systems and U.K. housing association Your Housing Group (YHG) joining forces to build six prefab factories that will deliver 25,000 energy efficient homes per year, click here. ##

(Image credits are as shown above.)

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RC Williams, for Daily Business News, MHProNews.

Submitted by RC Williams to the Daily Business News for MHProNews.

British Giant Eyes Cavco Industries Holdings

November 16th, 2016 Comments off
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Credits: Legal & General, Cavco, Open Clip Art.

Legal & General Group PLC, which has made significant moves recently in the manufactured and modular housing segments, held its stake in Cavco Industries Inc. (NASDAQ:CVCO) during the second quarter of 2016.

The Holdings Channel reports that Legal & General owned 1,255 shares of the company’s stock at the end of the quarter, valued at $114,000.

Another international investor, Swiss National Bank, raised its stake in Cavco Industries by 5.8 percent in the second quarter and now owns 14,500 shares of the company’s stock valued at $1.359M.

Cavco recently reported earnings per share of $1.03, which the Daily Business News covered here.

Legal & General Moves

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Eric Dean, credit Builder.

Eric Dean, who serves as the innovation and production director for Legal & General Homes, Ltd, said that the British insurer’s goal is to be one of the largest homebuilders in the country.

Dean recently presented a new, Cross Laminated Timber (CLT)-focused manufacturing process as a way to make building single and multi-family homes easier by turning it into a prefabricated home assembly line.

A house is a very simple thing, but every time we build a house we seem to reinvent the wheel,” Dean told the audience at the FEA 2016 Forest Products Forum. “So we’ve done a seamless design process linked to a seamless manufacturing process. All through the process what we are doing is cutting out layers of people we don’t need.

 

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Credit: Cavco.

Paul Stanworth, managing partner at Legal & General, also spoke positively about modular housing in response to the “Farmer Report,” produced by Cast CEO Mark Farmer.

This review sets out a clear way for the construction sector to reinvent itself in order to meet the ever-growing demand for homes and infrastructure,” said Stanworth.

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Paul Sanworth. Credit: UK Infrastructure Investment.

Legal & General is helping to address this problem by investing in a modern factory to produce homes using manufacturing processes seen in the production of cars and other consumer goods.

This construction method is safe, clean, and fast, providing a high level of consistency and durability. We sincerely hope that Farmer’s review galvanizes the entire sector to invest in innovation and secure its future.” ##

(Editor’s notes: While some 95% of our audience is domestic, MHProNews’ international audience comes from nations that includes ‘investor nations.’  MHProNews is the runaway #1 source for industry pros, those professionals following/tracking the industry and is still growing.  Our sister publication, MHLivingNews.com is the big #1 on the public-facing side, and is also growing rapidly.)

(Image Credits are as shown above.)

rcwilliams-writer75x75manufacturedhousingindustrymhpronews

RC Williams, for Daily Business News, MHProNews.

Submitted by RC Williams to the Daily Business News for MHProNews.

UK Broker: Prefab Housing “True Way Forward”

October 22nd, 2016 Comments off
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Cover of the Farmer Review. Credit: Cast Consulting.

Coming out in support of a government commissioned review, Zing Mortgages director Paul Flavin said that the introduction of a more affordable modular housing package was needed to encourage investors to return to a market where some yields in the United Kingdom (UK) have fallen to unsustainable lows.

I am becoming more involved with the world of modular housing seeing it as a true way forward in many areas, said Flavin.

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Paul Flavin. Credit: LinkedIn.

In the South East property prices have grown to a point where rental yields can be as low as 3% and 4% meaning landlords aren’t purchasing in these areas. The introduction of a more affordable modular housing package could be the only way to increase rental yields to a sufficient level, encouraging investors to return to these areas.”

Mark Farmer, CEO of Cast, was commissioned to review the UK’s construction labor model by the Construction Leadership Council and housing ministers in February 2016.

His review found that new construction methods were needed to offset a “general shortage of skills in the construction sector,” which had inflated building costs and made traditional housing projects “too expensive to build.

Entitled “Modernise or Die,” the study recommended the launch of a pilot program that would test the use of pre-manufactured construction in the residential space.

As Daily Business News readers may recall, we recently covered the investment move of Legal & General in modular housing this year.

The construction industry is in dire need of change. What is clear to me following the nine months spent conducting this review is that carrying on as we are is simply not an option,” said Farmer.

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Mark Farmer. Credit: LinkedIn.

Unless we find some way of promoting innovation in construction and making the work less labor intensive and more attractive to new entrants, there’s a very real danger of the construction sector going into an inexorable decline over the next few years.

Farmer’s report also highlighted a dysfunctional training model, lack of innovation and lack of collaboration. It also highlighted a “non-existent research and development culture, which is holding back the market.

In short, it’s “modernize or die,” said Farmer.

According to Mortgage Solutions UK, in addition to 10 recommendations for improvement, Farmer also suggested a medium-term solution could be a “carrier bag charge”-style deterrent scheme, forcing businesses to opt for new models of construction.

The solution would levy a tax on businesses that buy construction work in a way that doesn’t support industry innovation or skills development.

If violated, clients could end up paying a levy equal to 0.5% of a the projects’ construction costs, but could avoid paying the tax completely by commissioning construction in a more responsible way.

We will carefully consider the recommendations,” the government said.

Paul Stanworth, managing partner at Legal & General, also spoke positively about the report.

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Paul Sanworth. Credit: UK Infrastructure Investment.

This review sets out a clear way for the construction sector to reinvent itself in order to meet the ever-growing demand for homes and infrastructure,” said Stanworth.

Legal & General is helping to address this problem by investing in a modern factory to produce homes using manufacturing processes seen in the production of cars and other consumer goods.

This construction method is safe, clean, and fast, providing a high level of consistency and durability. We sincerely hope that Farmer’s review galvanizes the entire sector to invest in innovation and secure its future.” ##

(Image credits are as shown above.)

rcwilliams-writer75x75manufacturedhousingindustrymhpronews

RC Williams, for Daily Business News, MHProNews.

Submitted by RC Williams to the Daily Business News for MHProNews.

From Factory Floor to Finished Flat: Modular Homes Seen as Key Housing Shortage

August 23rd, 2016 Comments off

UK_Greenwich_apts_23_story_modular_apartment_bldg_by_Elements postedDAilyBusinessNewsMHProNewsMHProNews has learned from telegraph.co.uk that modular construction of homes in the United Kingdom (UK) may be key to hit their government’s target of constructing 200,000 homes per year to alleviate the severe housing shortage, and attain the one million mark by 2020. Last year only 142,890 homes were built in the UK.

A survey of 230 home builders revealed 67 percent agreed that off-site construction will play an important role in new home supply.

At the Elements factory in Telford, Shropshire, workers are making modules that will comprise a 23-story high rise for Greenwich, in southeast London. Each module requires seven days to complete—including electrical and plumbing, furnishings, everything down to coat hooks and soap dish—and on the eighth day it is ready to be transported to the site and craned into place.

Mark Farmer, founder of advisory group Cast, estimates that just 15,000 homes are constructed off-site a year, but large companies entering the market, such as Legal & General, and Laing O’Rourke indicate the landscape for modular home building is rapidly expanding.

With 20 modules arriving each week at Greenwich, 632 of the units will be stacked on top of each other, plugged into a concrete core. Each apartment is comprised of two or three modules, which can be built as large as necessary, providing they can be lorried (trucked) to the site.

Workers of all trades assemble up to 700 homes per year at Elements’ 200,000 sq ft facility.

Fully computerized and automated, Legal & Guardian’s 500,000 sq ft site, which will open later this month at Leeds, will be able to produce 3,000 homes per year. James Lidgate, head of housing at L&G, noting the factory does not require the same skill level as Elements, said, “It is much more akin to the manufacture of cars on a production line.”

Farmer said building modular homes is a means of meeting housing goals given the skills shortage, a shortage that is likely to increase because of a lower reliance on EU labor, after Brexit. “The amount we build with the labour we have needs to improve,” says Farmer. “Productivity has been pretty poor, and we have built in the same way for the last 50-100 years. To offset the critical shortage of labour we need to change the way we construct – and that’s with modular.”

Institutional investors funding off-site construction works best as the private rental sector grows, because the modules are made on a large scale, designs can be repeated, and rental income can come in much quicker because of the six month advantage over site-built housing. Additionally, repeated designs can become increasingly cost effective. This makes off-site methods financially more sound.

Barriers to entering the market are rather high because of the investment required, an investment that stick-built homes do not require. While site-built builders talk about getting into the factory-built homes market, they could just as easily say, according to James Lidgate, head of housing at L&G, “Why invest thousands in a factory when you don’t need to?”

CEO Marc Vlessing of Pocket Living says modular cuts building time by a third, waste is reduced by 90 percent, and is less disruptive in tight urban areas resulting in 60 percent less truck movements. Saying “it is a crucial technology that we should be deploying,” he adds, “We need the right manufacturers to gain widespread support so consumers and lenders can have complete confidence on the quality of the end product.”

As American factory home builders consider the numbers being considered in England, here in the U.S., manufactured housing may hit some 80,000 homes (+/-) in 2016, and markedly fewer single family modular homes are currently being bulit. Upside domestic potential, anyone? ##

(Rendering credit:telegraph.co.uk/Elements–23-story modular Greenwich apartment building going up in south east London)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J Silver to Daily Business News-MHProNews)