Fewer tradesmen supports the potential for prefabricated building modules
The construction industry is at a critical turning point. The shortage of tradesmen in the construction industry is expected to increase significantly over the next 10 years as the demands for faster construction times intensify.
According to an analysis from the organisation for small and medium-sized businesses SMV Danmark, the number of skilled workers in Denmark will decrease by 81,000 by 2032, including over 5,700 tradesmen, with carpenters, plumbing technicians and machine joiners being particularly hard hit. This development is making it necessary to rethink traditional ways of working and embrace more efficient solutions – and prefabricated building modules could be the answer.
Shortage of skilled tradesmen has tangible consequences
“The construction industry must take into account the availability of skilled labour, which is going to be in increasingly short supply,” says Kirsten Sønderskov Andersen, CEO at Green Box. “We have a mixed workforce, where qualified professionals approve the processes, while specialist workers help with production. This ensures an efficient workflow and reduces pressure on the industry.”
Green Box produces prefabricated bathrooms in heated halls in western Jutland, and the bathrooms have a standard carbon footprint of approx. 2.9 kg per square metre per year* (*internal LCA calculation, verified by third party). Using advanced technologies such as lightweight construction, digital documentation of materials and app-driven processes, the company is able to minimise its material waste while delivering innovative solutions both in Denmark and abroad.
A report from Danvak, a network organisation for players within HVAC, energy and the indoor climate, estimates that approx. 630,000 errors are registered each year in the construction industry in Denmark. These errors lead to delays, extra costs and wasted materials – issues that prefabricated building modules can help minimise. “With our approach to prefabrication, we’re reducing error rates because we can control all the processes indoors, where we have complete control of both quality and time schedule,” explains Kirsten Sønderskov Andersen.
A familiar challenge for the entire industry
Another parameter contributing to the shortage of new tradesmen between now and 2032 is the marked growth which the construction industry has already been seeing from early 2025. According to the analysis and forecasting institute Prognosecenteret, new construction activity will increase by 25.4% in 2025, and new commercial construction is expected to increase by 10.3%.
As early as 2025, renovation projects will start being deprioritised due to the high growth within new builds. There simply are not enough hands available due to the increasing levels of activity, age-related retirement and lower numbers enrolling in vocational training.
“Addressing this development is crucial,” says Dan Sand, chief sales officer (CSO) at Flex Modul, which specialises in modular construction. “We’re experiencing an increasing demand for prefabricated modules precisely because of the challenges facing the industry. It’s not just a question of efficiency, but also of being able to engage in construction projects under current market conditions.”
Tomorrow’s standard – for the benefit of the entire value chain
For many players in the construction industry, prefabricated building modules are a solution that addresses labour shortages, reduces downtime on site and meets efficiency requirements.
Construction time is – and will increasingly become – a key factor in the industry, which is why prefabricated buildings are also a solution that many developers, architects and contractors welcome.
The Aarhus-based property developer Thybo Ejendomsudvikling is just one company to have embraced prefabrication with great success: “We’ve built almost 500 homes using prefabricated solutions, and we currently have 600 homes under construction,” says Rasmus Kjær, CEO and head of development. “The biggest advantage is that we can devise the right solutions from the outset, saving both time and money.”
Thybo Ejendomsudvikling uses prefabricated elements in its new buildings because the company wants to create the right solutions from the outset to ensure a smooth building process. For example, it helps to reduce waste. And there are no days when work has to stop due to bad weather – which ultimately results in a shorter construction period on site and requires fewer workers.
Therefore, Rasmus Kjær is confident that prefabrication can contribute significantly to solving a number of complex problems: “I’m convinced that prefabricated building modules will be used more and more in the construction industry. I find that more people are considering it in line with the new building regulations and the increased requirements for documenting climate footprint.”
New trends shaping the future of construction
Dan Sand, CSO at Flex Modul, recognises this development.
“The trend is definitely growing. Some consultants and architects have embraced it and been first-movers, but now we’re finding that more and more people are getting involved. Our industry is seeing a bigger influx of customers. – We’re definitely seeing a growing market,” he says, citing increasing climate requirements and the speed of construction as the main reasons for the growth.
When the building modules leave Flex Modul’s production facility in Vinderup, Jutland, they are 80–85% complete. Then they simply need to be installed on site. Of course, this requires good weather, but during production at home in the halls, weather is not a factor and the processes are easier to manage indoors.
Throughout his many years at Flex Modul, Dan Sand has noticed a development in the demand for prefabricated building modules.
“The biggest parameter right now is the environmental and climate documentation requirements, but construction time is also often important. At the end of the day, it’s all about finances, and a developer can also take on more projects than would otherwise be possible. There’s a lot of money to be saved by reducing the construction time, while for public buildings, which we often work with, it’s important that an institution can be taken into use quickly,” says the CSO in conclusion.
In light of the growth and an increasingly significant shortage of skilled labour, the construction industry is entering a time when prefabrication could become the norm. Prefabrication can offer financial advantages and help reduce waste while also helping the industry to counter labour shortages with efficient and innovative solutions.
Sources:
https://danvak.dk/kategori/kompetencer/
Figure 3. Estimate calculated by Claus Andreasson based on data from Byggefakta, Trends Q1 2023, and Ugebrevet A4’s 2014 survey.
SMVdanmark: https://smvdanmark.dk/analyser/temaanalyser/faerre-haandvaerkere-de-naeste-ti-%C3%A5r
Green Box A/S
Green Box was founded in 2014 to meet the market need for prefabricated bathrooms with low installation height and low weight.
From day one, Green Box has focused on digitalisation, process optimisation and resource-efficient production. The company has applied itself to developing and testing its bathroom designs, which are now patented in Denmark and the EU.
Green Box has received the Growth Entrepreneur Award from Herning & Ikast-Brande Business Council (2017) and a Børsen Gazelle (2019 and 2020), and has been a Børsen Bæredygtig Case (2022).
Green Box currently employs approx. 150 people and produces around 4,000 bathrooms per year.
In 2021, Green Box became part of the investment company A/S Motortramp’s portfolio.
Thybo Ejendomsudvikling A/S
Thybo Ejendomsudvikling A/S was established in 2010. The company was a spin-off from the construction and masonry company Brdr. Thybo A/S in Skanderborg, and was originally known as Brdr. Thybo Ejendomsudvikling A/S until 2021, when it changed its name to Thybo Ejendomsudvikling A/S.
Thybo Ejendomsudvikling’s work is wide-ranging, and the portfolio includes everything from the construction of terraced houses, single-family houses, apartments and youth housing units to renovation projects and project development.
The company is currently enjoying high levels of activity, and is busy at several locations in Jutland and on Funen and Zealand. It is involved with several projects in the suburbs of Aarhus, where one of the main goals is to challenge and improve traditional suburban construction.
Flex Modul A/S
Flex Modul produces prefabricated modular buildings for offices, institutions, educational facilities, cooperative housing and large residential complexes.
On average, the company builds 10,000 square metres a year.
Established in 1994, the company’s production is today equipped to handle large projects that meet customer requests and legislative requirements.
Flex Modul can act as a main contractor, subcontractor or turnkey contractor in construction projects.
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