Off-site manufacturing: the game-changer for Singapore construction

By Michael Murphy and Steve Raye

/ EdgeProp Singapore |

November 4, 2022 9:00 AM SGT

Singapore is committed in its journey to help construction companies boost productivity and reduce foreign labour dependency, says Linesight. (Picture: Samuel Isaac Chua/The Edge Singapore)

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SINGAPORE (EDGEPROP) - The adoption of modern construction methods has accelerated in Singapore with off-site manufacturing (OSM) being deemed by the Singapore Building and Construction Authority (BCA) as a game-changing method of construction, given its multitude of benefits.

The process, commonly referred to as DfMA, is a combination of two construction methodologies — Design for Manufacture and Design for Assembly — and involves construction parts being designed for manufacturing off-site in a controlled environment, before being assembled on-site. Looking ahead, Singapore will open its first-ever integrated construction park at the end of this year, placing a priority on the optimisation of land and accelerating automation by encouraging DfMA.

As the future of construction takes shape, it is important to address the opportunities and barriers surrounding the adoption of OSM.

Why is OSM a favourable method?

Supply-chain constraints fuelled by geopolitical tensions and the impact of the pandemic have been top of mind for many construction companies in the region this year. As we emerge from these challenges, inflation has posed yet another hurdle, and is expected to linger for some time despite rising interest rates. In parallel, even with the easing of travel borders and employment returning to pre-pandemic levels, the productivity of the construction industry has taken a hit due to a lack of skilled labour. Nonetheless, OSM could still be a light at the end of the tunnel for the construction industry.

Construction delays because of various issues, such as weather, equipment failures, manpower shortages or mistakes, generally lead to increased costs. Taking large elements of construction off-site reduces construction time and manpower requirements. Programme savings of up to 50% are also possible, because OSM facilities are not exposed to weather conditions and help to streamline workflows.

Linesight OSM Figure - EDGEPROP SINGAPORE

Chart: Linesight

Prefabrication facilities typically provide an environment where stringent quality control processes can be implemented, resulting in improved workmanship. Manufacturing and/or assembling components off-site usually allows for more spacious work-areas, and the use of larger and more automated machines.

The design process in OSM also means that consideration is given to reducing the number of parts required, as well as what the assembly sequence entails. The result is typically a product of higher quality and reliability, as there are fewer parts at risk of breakage or loss in the assembly process.

With Singapore construction firms continuing to experience skilled labour shortages, OSM also reduces the quantity of highly skilled or specialised labourers required on-site. This is due to the standardised and repeatable nature of the OSM methodologies, as compared to conventional site-built construction. Transferring from trade-based delivery to a more task-trained operative scenario not only reduces cost, but also improves productivity and access to labour, and can help to alleviate any construction skills capacity issues in the market.

Realities on the ground — key drivers for adoption

Despite the popularity of DfMA, project teams need to understand the key considerations when assessing whether off-site or traditional construction is the optimal approach to meet project objectives. To understand the key decision-making criteria, Linesight’s recent global study across four primary sectors (data centres, life sciences, residential and healthcare) revealed nine key drivers for choosing OSM and its relative importance to each sector.

Requirement for early cost certainty is important across all sectors, while quality delivered by the construction approach is of most importance to the data centre sector. Moreover, budgeted capital cost was found to be one of the key drivers for the residential and healthcare sectors. This is especially prominent in regions where there is strong demand but weak supply, and high labour costs for residential properties.

Interestingly, when performance metrics are applied across sectors, the differences become apparent. When you look at sectors in more detail, it is clear that there are distinct trends and differences in the ranking of criteria, resulting in varying adoption rates for OSM. For sectors such as life sciences, data centres and healthcare, there is strong alignment between the important decision-making criteria and the ability of DfMA approaches to deliver against these criteria. This also explains why the life sciences and data centre sectors have been quick to adopt modular construction, based on the need for early cost and delivery certainty, and quality.

A calibrated approach looking ahead

With a pipeline of projects prescribing DfMA technologies and an ambitious target of increasing prefabricated buildings to 70% by 2025, there is no doubt that Singapore is committed in its journey to help construction companies boost productivity and reduce foreign labour dependency. Government incentives, such as BCA’s BuildSG Transformation Fund, also signify a favourable and nurturing environment for construction companies to pivot towards smart construction methods.

As industry players progressively find themselves accelerating the adoption of OSM to stay relevant and competitive, it is important that an informed decision is made, and an expert’s opinion would enable companies to be well-placed in capturing the growth opportunities in modular construction.

While there is an increased push towards OSM in general, it is important to recognise that there is an interplay of factors that influence the decision to adopt OSM, including the type of project and sector, as well as time and budget constraints. From a macro perspective, the organisation’s priorities, availability of competent suppliers in-market, as well as labour and regional infrastructure, are also key considerations when choosing between OSM and traditional methods of construction.