Those canny Germans can teach us a thing or two about offsite. A recent DTI conference spilled the beans on their techniques, and Kristina Smith took notes

What do the Germans know about offsite construction that we don’t?

It seems everyone wanted to know. A conference in September in London detailing modern methods of construction in Germany was hugely overbooked – and that was after organisers DTI and CIRIA had filled a second lecture hall, video-linked to the first.

Why the popularity? Perhaps because of the government drive to encourage MMC, and the way that is impacting on social-housing funding. Perhaps the time is right for offsite to be taken seriously. Or perhaps, as one delegate suggested, it was because the event was free.

Whatever the reason, delegates gained an insight into how offsite works in Germany, where 25,000 new houses annually are built this way. The speakers had been on a DTI mission to Germany to uncover their secrets. But don’t worry if you missed the conference, because CM went along. And here’s what we learnt.

THE GOOD STUFF

1 Feel the quality

Offsite doesn’t necessarily mean quicker. And it doesn’t mean safer, if some of the photos were anything to go by. What it does mean, in Germany, is better quality.

All the speakers had been blown away by the high quality of all the houses they had seen, although they hadn’t got to the bottom of how German contractors achieved this. Maybe it’s a question of mentality. Tim Venables, an associate at Imperial College, took a photo of one company’s instruction to workers: ‘In Qualität und Leistung die Nr. 1 zu sein verpflichtet.’ This means ‘You are committed to be number one in quality and achievement’.

2 Beat the regulations

While UK housebuyers want lovely kitchens and bathrooms, people who buy offsite-constructed houses in Germany also want to know about thermal and sound insulation. Offsite manufacturers pioneered higher environmental standards as a selling point, so they provide houses that beat the regulations, and thus drive national regulations up for everybody.

So for example there’s nothing unusual about solar panels on the roof.

3 Variety within limits

Post-war prefab had a pretty bad reputation in Germany too. They were known as ‘cardboard houses’, so you would think that providing a limited choice of houses would be a bit of a turn-off to the punters.

But the great thing is that the houses have been designed so you can get several variations on a theme around a basic structure.

It was interesting to hear that last minute changes of mind by customers sometimes force some trades from the factory back onto site, particularly electricians. Manufacturers were keen to somehow reverse that trend – but hadn’t worked out how yet.

4 Design to produce

Rather than design a house and then say ‘prefabricate that’, German designers and manufacturers are very much integrated, according to Andrew Ogorzalek, director of PCKO Architects, who went on the mission. Manufacturers train architects in how to design to fit the process. Research bodies and universities are also in the loop as well as customer feedback. “It’s very much a co-ordinated process of design, research, manufacturing and marketing.”

5 Small is beautiful

Delegates on the mission were expecting to visit vast high-tech manufacturing facilities, but discovered that many of them are quite small-scale, producing around 250 units a year and providing high levels of customisation.

This is very different to the UK approach, says Venables, where manufacturers are going for large facilities with a high level of turnover and homogeneity.

THE BIG BUTS...

6 The market’s different

There’s one huge caveat to all this, though. The German housing market is very different from the UK one. 55% of home buyers are self-procurers. That means you buy a plot of land, go and visit a showhouse estate next to the manufacturer’s factory and say “I want that one.” This means there is a much stronger customer focus.

In the UK, house builders are selling the land and its location as much as the house.

7 Not in Basildon, baby

Many of the attractive timber designs made great use of light and space. But what works on a single secluded plot is not necessarily going to work on a housing estate. Glass-walled bathrooms in Basildon? Maybe not.

8 Is choice good for us?

Since it is the social housing sector that is showing the most interest in offsite (largely due to government pressure through funding which encourages the use of modern methods of construction), the ability to choose can be of limited value. Tenants change, so being able to customise homes may be of limited value. Many private house builders are interested but, says Venables, when they are doing so well with traditional methods, taking risks with new ones is not attractive.

THE FUTURE

Will it happen here?

The answer is it is already happening to some extent. At the moment estimates show 12% of UK houses are built using offsite techniques, although this doesn’t equate to the highly factory-finished products which the Germans count as offsite. The interesting question is whether the German model of small factories producing customised houses could work in the UK. One firm, Elk, which has factories in Austria, Germany and the Czech Republic thinks the time is right now (see box). So perhaps it will be the Austrians rather than the Germans who show us the way.

ELK shows the value of experience

Why does Austrian offsite manufacturer Elk think it can make a success in the UK when UK firms are struggling to get the volume? Simple, says Elk export and partnerships manager Kurt Schlattinger. Elk has 40 years of experience.

Elk opened a factory in Ireland (pictured left) in 2003 with an investment of 8.5m Euros, to catch the buoyant market over there, which Schlattinger reckons will last for a maximum of five years. So far it has produced 200 to 250 units. 15% were social housing, 70% were private sector housing of various types (but not first-time homes) and 15% were exclusive small developments.

The firm is in negotiations with ‘two or three’ potential partners in the UK now and hopes to open a factory in the UK in 12 months’ time to produce a minimum of 250 units a year in one shift. That means if demand increases it can add another shift and potentially another 250 units.
Elk’s business model is not to transport units further than 300km. If they get beyond that limit and the market allows, they build another factory.

The firm can’t provide offsite solutions for all the house designs developers present it with. It can make around 80% of them technically, 20 to 25% competitively. The goal is to educate architects to design to suit the system which will get the best results economically. Elk is just starting that process in Ireland.

Austrian employees are training up local people in the factory and also supervising on site. Ideally, Elk likes to employ its tradesmen directly, but couldn’t do that in Ireland, so it’s had to increase its level of (Austrian and German) site supervision.

“Very nice but they missed the point”

MCIOB Brian Randall travelled from Hull to attend the offsite event in London. The past CIOB Yorkshire chairman started his career with a prefab concrete panel manufacturer in the 1950s and more latterly worked for Elliot Group, which makes timber panels. “I wondered how much had changed,” he said. “The answer is ‘not much’.”

While Randall (currently project manager on an office job for Harrison Construction) enjoyed the event, he questioned the relevance of studying the German market for detached houses. How is that going to answer John Prescott’s calls for modern housing built with modern techniques?
For Randall, the most important message to emerge was that German manufacturers use skilled tradespeople in the factories, rather than training up unskilled people to be multi-skilled, as is the practice in the UK. He thinks this is a key element of achieving high quality because it impacts on the materials used. For example, an experienced carpenter will select the best piece of wood for a particular job.

As a practitioner, Randall was hoping to get some insight into techniques. How did the Germans manage to get such good air-tightness (a subject close to his heart, having employed two labourers to spend two weeks sorting air gaps on his office building prior to an air test)? And how exactly did the special unloading devices on the lorries work?

Randall thinks there should be a public-private partnership to set up, say, five manufacturing facilities in the UK. “I would hate to think we were giving an open invitation to other companies from other countries to come and take our market from us. That’s just what happened with the car industry.”