A Loughborough University lecturer has argued the construction industry can learn from the infamous collapse of music-sharing platform Napster, more than 20 years ago.
Dr Ali Saad of the University’s School of Architecture, Building and Civil Engineering said the collapse of companies offering Modern Methods of Construction (MMC) is “nothing but good news” and could likely lead to positive change in the industry.
BSc MSc PhD Aff.M.ASCE. Credit: Loughborough University
Napster, a file-sharing service that allowed users to download music for free, was shut down after losing multiple lawsuits before filing for bankruptcy in June 2002.
Dr Saad, a lecturer in Construction Engineering and Project Management, said the sector can learn from the platform after its demise reinvigorated the music industry with the introduction of platforms such as Spotify and Apple Music.
The lecture also compared the failure of electric car company Fisker when it challenged the established car industry.
In January, the Built Environment Committee published a letter to the then conservative government, following its inquiry into the future of MMC in housing, stating millions of pounds of public money had been wasted on a failed MMC push, with firms failing financially as a result.
Last month, modular housebuilder TopHat announced it would be winding down its modular housing operations, with most of its factory staff being made redundant.
In an OpEd of Inside Housing, Chairman of the House of Lords, Lord Moylan, argued that despite TopHat winding down, there remains hope for the future of MMC provided the government makes clear what its priorities are for the MMC sector.
Dr Saad claimed: “The death of MMC organisations is a vital step in establishing a robust and resilient manufacturing base for a modern, sustainable construction sector.
“What’s currently happening within the industry is all part of imminent change.
“Not much research is needed to understand that the traditional ways of delivering infrastructure are being outstripped by the overwhelming demand, skill shortages and the challenging construction business environment.
“These are challenges that require urgent solutions, partly due to the sector’s nature to seemingly reject any alternative methodology that does not fit the traditional blueprint.
“However, I believe we need to look at things differently.”
According to the latest Insolvency Service data Construction continues to be the worst-hit, accounting for 17.4 per cent of cases, 13 per cent than the next highest sector.
The number of construction companies of various sizes went out of business in the UK in the year to August, 1.1 per cent higher than a year ago.
Dr Saad continued: “Numerous industries have seen substantial company collapse in the past – with many developing new ways of working.
“Many of the organisations that I’ve spoken to when researching this had solid order books, full pipelines and were delivering projects – yet the conditions weren’t right for them to excel in this country.
“This doesn’t mean the industry is falling on its knees, it’s more of a sign of evolution and a movement towards more MMC, more innovation and more change.”
“My main message is for people to not immediately reject new ways of working but, at the same time, don’t be an innovative technological optimist.
There must be a middle ground because it’s not always the innovation itself that’s the issue – it’s sometimes the way we’re interacting with it or the environment it has been expected to grow in.
“Don’t reject innovation, don’t advocate against it, let us work together to start to understand how we can all benefit from whatever happens to organisations within the sector. We risk missing out on important opportunities if we don’t.”
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