Dr Dáithí Downey, author of Boosting Ireland’s Housing Supply: Modern Methods of Construction and Paul Tierney, CEO of MMC Ireland, examine the report’s findings and how to make Ireland a centre of excellence for MMC
Ireland’s housing crisis is deepening, with efforts to increase housing supply, improve sustainability and boost construction productivity now a stated government priority.
In the battle to deliver on expanding annual new housing targets, the adoption of offsite and other Modern Methods of Construction, or MMC, offers a promising path forward. The recently published National Economic & Social Council (NESC) report, Boosting Ireland’s Housing Supply: Modern Methods of Construction, provides, for the first time, a holistic analysis of the current state and future potential of MMC in Ireland.
Critically, this seminal report has been supported by the government and has been broadly welcomed by industry, who see this as a potential guide for the state to work with industry to shape the future of construction and project delivery in Ireland.
The NESC report comes at a crucial time for Ireland’s housing sector. With current targets of building over 33,000 homes annually under the Housing for All plan, traditional construction methods alone are struggling to meet demand.
This target figure is due to be increased significantly in the coming weeks and MMC, including offsite manufacturing and innovative onsite techniques, presents an opportunity
to significantly increase the speed and efficiency of housing delivery.
One of the report’s key strengths is its adoption of the UK’s seven-category MMC definition framework, providing much-needed clarity on what constitutes MMC in the Irish context. This ranges from 2D panelised systems and 3D volumetric, or modular systems, right through to process improvements on traditional sites.
The report also offers a snapshot of the current state of MMC in Ireland, noting that as of 2022, approximately 100 offsite manufacturing companies were operating in the country, with 27 providing complete MMC housing solutions.
Importantly, NSAI has stated that the number of enquiries for MMC certification in housing has doubled in 2024 compared with 2023 and the number of companies certified to deliver MMC housing is expected to rise significantly in 2025.
Benefits of MMC
The potential benefits of MMC are substantial and almost immediate. The report outlines possible cost reductions of 20%-40% and construction time savings of 20%-60% through MMC adoption.
It also emphasises the environmental benefits, with studies suggesting MMC can halve carbon emissions compared to traditional methods.
These advantages position MMC as a game-changer in meeting Ireland’s housing and sustainability goals. Importantly, the report highlights the existing capacity
within Ireland’s MMC sector and its potential for growth.
It notes that “enquiries for certification for MMC in housing from offsite manufacturers have increased, with the number almost doubling in 2024 compared with 2023, as well as an
increased capacity within the MMC sector overall”.
This growth in certification requests indicates a sector poised for expansion, ready to meet increased demand.
The report also quotes industry experts, who believe in the sector’s capacity to rapidly scale up.
As noted in the report: “Declan Wallace, chief executive officer of Evolusion Innovation Ltd and chair of MMC Ireland, quantified this potential, suggesting that MMC and OSM companies have the capacity to speedily increase annual housing output by 25,000 dwelling units”.
This statement quantifies the significant untapped potential within Ireland’s MMC industry; however, realising this potential requires addressing several challenges, including insurance concerns, regulatory issues around timber-based MMC, the need for standardised housing typologies, investment requirements and public perception issues.
The report outlines six key areas for action to address these challenges:
- Enhanced institutional leadership.
- Standards and innovation.
- Ambitious targets.
- Innovative finance.
- Skills development.
- Positive promotion.
For the government to provide immediate support and help the industry scale up, the report suggests several actionable steps.
Firstly, it recommends “increasing the targets and funding for new public housing using MMC under an expanded Social Housing Accelerated Delivery Programme (ADP)”.
This would provide the certainty needed for companies to
invest in expanding their capacity.
Secondly, the report calls for the creation of “a dedicated forward-funding arrangement for MMC in housing to lever increased investment in offsite manufacturing (OSM)”. This recognition of MMC’s unique financial needs could unlock significant growth in the sector.
In emphasising the importance of standardisation, the report states that “use of a standardised design approach is a critical consideration for the successful adoption of MMC”.
By developing and promoting standardised housing typologies optimised for MMC, particularly for mid- to high-rise buildings, the government can help create the scale necessary for MMC to thrive.
With the appointment of Hawkins Brown by DHLGC this year, this critical work on standardisation is well underway with full engagement from key industry stakeholders. This
work is expected to complete in early 2025.
A centre of excellence for MMC
Significantly, the Irish industry has the benefit of being a ‘second mover’ in MMC housing adoption. By learning from experiences in the UK and elsewhere, the industry can avoid pitfalls, learn from best practice and accelerate the pace of progress.
With the right support and development, Ireland’s MMC sector has the potential to become a net exporter of MMC solutions to the EU, establishing Ireland as a centre of excellence in this burgeoning field.
The path forward requires policy commitment, investment and a willingness to embrace change. But with the recommendations provided by this report and the combined efforts of government and industry, we are confident that Ireland can realise the full potential of MMC, delivering benefits for our economy, our environment and, most importantly, for those in need of high-quality, affordable housing.
We encourage all parties – from policymakers to practitioners, financiers to future homeowners – to engage with the insights and recommendations in this report to ensure a more innovative, productive and sustainable construction industry that meets Ireland’s housing needs today, while positioning our country as a leader in modern construction methods.
The NESC report can be downloaded in full by clicking here.
