Construction must undergo systemic change to reap the benefits of technology

The construction industry stands at a pivotal moment. As digital tools and automation reshape sectors across the economy, construction has a rare opportunity to reinvent itself—moving from fragmented, manual processes to scalable, industrialised systems.

But can the industry rise to this moment? To industrialise construction, the industry will need to undergo systemic change – starting with reform of the main contractor business model.

Having a main contractor managing an ever-growing chain of smaller suppliers and designers is inefficient, drags down productivity and fails to incentivise investment in skills and innovation. As a result, despite decades of technical advances in construction and a revolution in technology, the benefits have not flowed through to improved productivity.

We need a new model of doing business, with more main contractors developing their own workforce, as construction used to do

Instead, we need a new model, with main contractors bringing more of the supply chain and design in house, so the innovation that has been happening can be properly harnessed to drive improvements in productivity. We need a new model of doing business, with more main contractors developing their own workforce, as construction used to do.

At Reds10, we believe this transformation is not only possible – it’s essential. And we’re demonstrating that it can be achieved.

That said, the journey has not been a clear linear path; it has taken time, effort and resilience. Industrialisation is a long-term process, and Reds10 has been on this path since we opened our first factory 10 years ago.

It requires investment and a willingness to accept that developing specialist in-house expertise takes time. And that industrialisation takes far more than investment in state-of-the-art manufacturing equipment; investment in processes, people and design capabilities is just as, if not more, important.

In this respect, being a privately owned business has been a real advantage. As a self-funded company, we have deliberately avoided the pressures of impatient external capital that often demands rapid returns.

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This independence has allowed us to grow at a sustainable pace, resisting the temptation to scale too quickly, and to continuously learn from each new building that is produced and built.

So what have we learnt? When Reds10 started out with its offsite manufacturing facilities in Driffield, our processes were mainly focused on the manual assembly of modular buildings on the factory floor. This was in some ways not dissimilar to traditional construction, only it was being carried out indoors.

We have come a long way since then and now have a fully industrialised process in place, but the lessons learnt from building indoors were vital in the development of our business model.

What has made this possible is a simple but powerful idea: technology must be embedded across the entire business, not siloed in specialist teams. From design to delivery to operations, we have integrated digital innovation into every layer of our work. This holistic model allows us to standardise workflows, automate repetitive tasks, and unlock the full potential of our people and platforms.

The main contractor model needs to be led by design and not procurement to fully take advantage of AI, digital tools and industrialisation

But technology alone is not enough. The real enabler is control – over design, data and delivery. Perhaps the most important lesson we have learnt is this: to truly succeed with industrialised construction, design and delivery must be tightly integrated. When these functions are split across disconnected stakeholders, it becomes nearly impossible to embed buildability into the design process.

That is why the main contractor model needs to be led by design and not procurement to fully take advantage of AI, digital tools and industrialisation. The fragmentation of the current model is an obstacle to change and will hold the industry back from reaping the benefits of the technological revolution.

In contrast, our in-house model allows us to align intent with execution from day one, resolving issues early, reducing risk and streamlining delivery. Of course, this journey has not been without its challenges. Integrating automation and offsite production has revealed complexities we could not fully anticipate until we were deep in the process.

One major hurdle has been managing the sheer volume of machine-readable drawings generated by automation. On large projects, we’ve gone from producing around 100 steel drawings to thousands—each part generating its own file. While automation accelerates production, it still requires human oversight to ensure quality and coherence.

Time has also been a critical factor. Building and prototyping these systems took longer than expected. We quickly learned that integrating automation isn’t just about adopting new tools—it’s about laying down the digital foundations: data structures, workflow logic, and team alignment. It’s a process that demands patience, persistence, and a culture of continuous learning.

Technical barriers also emerged early on. Initially, automating workflows or connecting SaaS applications required high-level coding. But the rise of low-code platforms, open APIs, and AI-driven integrations has made this process faster, more stable, and more accessible.

Looking ahead, we see the future of design for manufacture and assembly (DfMA) becoming increasingly intelligent and agile. It is not just about designing the end product; it’s about designing the combined process of manufacture and construction.

By combining digital innovation with in-house control and a relentless focus on quality and productivity, we can help lead the construction industry into a smarter, more sustainable future

We have been piloting platforms like Autodesk’s Informed Design and Content Catalogue, which support centrally managed libraries of LOD 500 components. These tools give us full control over content, enabling the creation of fabrication-ready elements that can be seamlessly integrated into any design.

As more tools become cloud-based and interconnected, we anticipate even greater opportunities for automation, rapid content generation, and real-time design analysis. This evolution will allow DfMA to scale more effectively, bridging the gap between digital design and manufacturing execution—and ultimately transforming how buildings are conceived and delivered.

At Reds10, we know we are still on the journey. But we are confident that by combining digital innovation with in-house control and a relentless focus on quality and productivity, we can help lead the construction industry into a smarter, more sustainable future. But for the construction industry to get there, we really need to look first at the current operating model.

Paul Ruddick is the founder and chairman of Reds10