Green Buildings Supply Chain Analysis | Central Government

Overview

The UK’s commitment to net zero by 2050 is creating significant demand for green building products and modern methods of construction. But can UK supply chains respond?

A central government department commissioned Akerlof to analyse gaps and opportunities in UK supply chains for green building products, identifying where foreign direct investment could strengthen domestic capability and support the transition to net zero.

What we did

We assessed the current state of UK supply chains across nine product categories critical to delivering green buildings—from insulation and dynamic facades through to volumetric solutions, offsite MEP and digital construction technology.

For each category, we evaluated market structure, manufacturing capacity, financial stability of key players and ability to respond to forecast increases in demand driven by the Future Homes Standard and wider net zero policy. We mapped the MMC and platform-based construction landscape, drawing on our involvement in programmes across government to provide an informed view of where the market is heading.

The analysis identified priority areas where the UK supply chain may struggle to respond, and where targeted investment could address critical gaps.

The impact

  • Provided DBT with an evidence base to inform inward investment strategy for green building products
  • Identified priority supply chains warranting further investigation not least digital solutions (ConTech), draft proofing and MEP modules
  • Connected MMC policy drivers to tangible supply chain opportunities
  • Shaped understanding of how platform-based approaches can support the UK’s net zero ambitions

Don't just take our word for it...

Jamie Hillier

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With a penchant for tweed and jackets with leather arm patches, Jamie began his career as a quantity surveyor, before climbing the ladder to lead major projects for a Tier 1 contractor.

Eventually expanding his book collection beyond copies of SMM7, Jamie has interest in a broad range of subjects linked to delivering better outcomes for society and the environment.

His strategic insights on MMC and behavioural science have made their way into numerous government, industry and academic publications, including the Construction Playbook, Transforming Infrastructure Performance Roadmap to 2030, the Platform Rulebook and the RIBA DfMA Overlay.

John Handscomb

Partner
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Construction is in John’s blood. Learning from his father who was a planner and project manager, John began his career by working on some iconic projects in both the public and private sector.

As a procurement expert and integrator of new ways of working, John has pioneered the integration of platform principles, DfMA processes and supply chain within over £5bn projects in the last 15 years, for some of the largest building programmes in the UK. Despite his considerable expertise, John keeps it simple, communicating complicated ideas with ease and helping to equip the industry with new knowledge and skills.

Outside of Akerlof, John enjoys his executive role with technology start-up ScanTech Digital, spending time with his family, taking trips down the football, playing a bit of golf with friends and the odd pint. 

Our name is shared with George Akerlof, a Nobel Prize-winning economist.

His seminal paper, Market for Lemons, demonstrated the devastating consequences of making decisions under the conditions of quality uncertainty and unequal information between buyers and sellers, increasing the chance of buyers ending up with a ‘lemon’.

This 50-year-old concept continues to retain parallels within the construction industry.

Through our insight and experience, we can rebalance this information asymmetry on behalf of our clients, levelling the playing field to deliver better outcomes.