Liverpool has been selected as the first pilot area in an £85m national programme aimed at improving construction productivity and delivery.
The initiative, known as the Industrialising and Digitalising Construction Challenge, will focus on new approaches to building housing and public infrastructure, including schools and hospitals.
The pilot will be delivered in partnership with Liverpool City Region Combined Authority and High Value Manufacturing Catapult. It will test the use of standardised components, digital coordination and manufacturing-led processes.
The programme is funded through the UK Research and Innovation R&D Missions Accelerator Programme.
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 part of the pilot, Onward Homes and Torus Developments will test the approach on two social housing schemes, with the results used to develop a model for wider national use. The findings will also inform how the approach could be applied more broadly across public sector construction, including schools, hospitals and prisons.
The programme is the largest within the R&D Missions Accelerator Programme Growth Mission and is intended to support wider economic growth by increasing investment in construction-related manufacturing, skills and technology.
The sector currently operates at a productivity level estimated to be around 23% below the national average, with analysis suggesting that narrowing this gap could add up to £27bn in additional economic output and support up to 380,000 jobs over time.
The initiative aims to improve build times, reduce waste, increase cost certainty on publicly funded projects, improve energy efficiency and sustainability, strengthen domestic supply chains and support the creation of higher-skilled roles.
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.”