• Liverpool City Region has been selected to host the first pilot in the bid to modernise construction
• The pilot will apply innovative digital manufacturing processes to standardise operations
• The approach will then be trialled in two social housing schemes

A new £85 million national challenge is set to overhaul how Britain delivers sustainable social housing, schools, hospitals and public infrastructure, in a bid to boost a sector worth more than £250 billion a year to the UK economy.

Liverpool City Region has been selected to host the first pilot as part of the Industrialising and Digitalising Construction Challenge.

Working with Liverpool Combined Authority and the High Value Manufacturing Catapult, the pilot will apply innovative digital manufacturing processes to standardise ‘kits of parts’, improve digital co-ordination and provide greater certainty of demand. The Challenge is backed through the R&D Missions Accelerator Programme (R&D MAP) funded by UK Research and Innovation (UKRI).

Steve Rotheram, Mayor of the Liverpool City Region, said:

“Having started my own career as a bricklayer, I understand first-hand the pressures facing the construction sector. But to deliver on the government’s mission to get Britain building again, it needs to adapt with the times.

“I’m incredibly proud that our area has been chosen as the first national pilot to modernise construction. Our region is home to pioneering expertise in modern methods of construction, advanced manufacturing and digital innovation, with the talent and political will to lead from the front.

“If we get this right, we won’t just build the next generation of affordable social housing, schools and hospitals — we’ll strengthen UK supply chains, boost productivity, and give manufacturers the confidence to invest in skills and capacity, helping to create good jobs, and drive growth across the country”.

As industry partners, Onward Homes and Torus Developments will test and refine the approach by trialling it in two social housing schemes. Their insights will help finalise a standard delivery model for adoption nationally. The approach is expected to transform social housing delivery in its first phase. Findings from the pilot will inform how the approach is refined, scaled and rolled out nationally, including across the wider public sector infrastructure delivery, including schools, hospitals and prisons across the UK in the future.

The Challenge, which is the largest in the R&D MAP Growth Mission, also supports the government’s economic growth mission by increasing investment in manufacturing skills and technology to enhance capacity and close the productivity gap in the construction sector, which is consistently around 23% below the national average. Analysis suggests narrowing that gap could add up to £27 billion in additional economic output over time – generating up to 380,000 new jobs.

The goal is to grow domestic manufacturing capability by:

• Improving productivity and reducing build times
• Reducing waste and improving cost predictability on publicly funded schemes
• Improving the sustainability of construction and the energy efficiency of public buildings
• Strengthening UK-based supply chains
• Creating high-skilled employment opportunities.

Lord Vallance, UK Science Minister, said:

“We are beginning our mission to transform the UK’s construction industry in Liverpool – a city which has long been at the forefront of innovation and creativity. The digital technologies and manufacturing methods developed here will help us speed up how we can build more homes, schools, and hospitals right across the UK.

“This work will help us set the benchmark for how we deliver high-quality infrastructure more efficiently, directly benefitting communities. By supporting this initiative, we are backing more high-skilled jobs for Liverpool while also bringing our construction industry into the digital age.”

Katherine Bennett, CEO of the High Value Manufacturing Catapult, said:

“Our focus is on turning ambition into action. By bringing together manufacturers, housing providers and public clients around shared standards and clearer demand signals, we can give industry the confidence to invest and expand capacity. That is how we move from isolated successes to a more resilient and competitive construction sector.”

Plans also include an Accelerator Centre to support product testing, workforce training and supply chain development in the near future. Further regions and projects are expected to follow as the challenge develops, informed by evidence gathered through the Liverpool pilot.