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Minister for Enterprise, Trade and Employment, Simon Coveney, today hosted a construction sector stakeholder event focused on identifying ways to drive innovation and boost productivity in residential construction, including through the adoption of modern methods of construction (MMC).
The event is part of the Department of Enterprise, Trade and Employment led cross-departmental and cross-agency initiative on MMC under Housing for All.
Stakeholders heard updates on various government initiatives currently underway to speed up delivery times for new home construction, increase use of off-site manufacturing and drive transformation in the sector, including:
Industry and professional bodies from across the residential construction value chain engaged on further steps that could be taken to remove barriers to MMC adoption and effective ways of encouraging innovation. Together with representatives from a cross-section of State agencies and bodies active in supporting the transformation of the sector, from certification though to procurement, digitisation and upskilling, they also reflected on the long-term vision for the industry.
Minister for Enterprise, Trade and Employment, Simon Coveney, said:
"We all know that solving the housing crisis is a complex challenge that requires a collective effort to speed up delivery times. Government is committed to working with the construction sector to embrace innovation and boost productivity in house building, to ensure it delivers the government’s ambition in Housing for All.
"Ireland has a track record of being an innovator in commercial and industrial building and our abilities in house and apartment building, need to be part of that reputation.
"We need to step up our collaboration between the public and private sector to develop and implement workable solutions to accelerate the adoption of innovation and modern methods in construction."
The feedback captured during the event will be used to inform the development of a roadmap for MMC adoption in publicly procured residential construction, a priority action the Department of Enterprise, Trade and Employment is leading with the Department of Housing, Local Government and Heritage under the updated Housing for All Action Plan. This work includes progressing MMC in procurement frameworks and addressing related implementation challenges across regulation, skills development, targets for MMC in public procurement, and capacity building/leadership in the construction sector.
Forging partnerships with industry stakeholders is an important output of the event.
This is the first in a series of construction industry engagements planned by the Department of Enterprise, Trade and Employment for 2023.
As part of the whole of government Housing for All plan, DETE is working to promote construction sector innovation and productivity, including through the adoption of Modern Methods of Construction (an umbrella term used to capture a range of innovative construction processes like panelised housing or 3D volumetric/modular pods), to help in the faster delivery of high-quality (compliant), environmentally sustainable, and more-affordable housing.
Examples of key Housing for All actions that DETE has already delivered to promote the wider adoption of innovative construction methods are:
DETE has established and Chairs (at A/Sec level) a cross-departmental and cross agency MMC Leadership and Integration Group to drive the development and greater adoption of MMC in residential construction. The Group brings together policymakers relevant to the success of the construction sector including on innovation, public procurement, sustainability, housing and the education and skills agenda.
The Group is identifying and progressing actions to accelerate innovation and MMC adoption in residential construction, and also has a key objective in ensuring that there is an integrated approach across various initiatives and entities with a role in promoting MMC.
The MMC Group has already delivered on several actions relating to MMC that have been included in the updated HfA Plan in 2022. These include:
The MMC Group is also working to ensure an integrated approach across a range of existing and emerging MMC relevant entities and initiatives, each of which presented at the event. These include the Construct Innovate tech centre (Enterprise Ireland/DETE); the planned Demonstration Park for MMC (led by SOLAS/Laois-Offaly ETB); the Build Digital project (sponsored by DPER); and Enterprise Ireland’s Built to Innovate initiative (extension of innovation and productivity supports to domestically focused housing firms), so as to maximise synergies and ensure rapid transfer of knowledge and skills to the construction sector.
In 2021, Ireland’s population reached 5 million for the first time since the 1850s. Some estimates, including Project Ireland 2040, predict that we will have an extra million people within the next 20 years. To service the current population and the projected 20% increase, the government is investing billions (€165 billion National Development Plan) - substantially above the EU average – in building new homes, roads, public transport, schools, hospitals and other vital infrastructure. The Irish construction sector employs over 171,000 people which is 6.7% of total employed in the economy and represents 2% of GDP.
The Irish construction sector is a major driver of economic activity. It provides the social, economic, and productive infrastructure required to sustain economic growth and competitiveness and attract foreign direct investment.
Enterprise Ireland’s High-Tech Construction and Housing team works with a portfolio of 450 client companies that achieved exports of €2.89 billion in 2021, up 24% on the previous year.
Enterprise Ireland's Agency Mandate has been expanded to allow a suite of existing research, innovation, lean, digitalisation and green offers to be made available to domestic residential construction sector. This 'Built To Innovate' campaign was launched on 21 March 2022.
Despite having some high performing companies, the construction industry overall has major challenges including fragmentation, boom-bust cycles and comparatively low productivity compared to other sectors of the economy.
Working with the government’s Construction Sector Group, and supporting the implementation of Housing for All, Enterprise Ireland is leading the drive for productivity and innovation through the establishment of the Construction Technology Centre which will sit alongside a Build Digital Centre (est. 2021), the forthcoming Demonstration Park at Mount Lucas, and other related initiatives.