Why temporary structures are the smartest way to expand after the budget
Following this year’s UK Budget, delivered by Chancellor Rachel Reeves, it is clear that UK businesses will need to avoid unnecessary exposure to risk, and preserve liquidity wherever possible. The UK business environment has been challenging for several years, with inflation, increased energy, fuel and material costs, coupled with supply chain issues causing delays to investment decisions. With economic uncertainty prevailing, we have seen businesses rethink capital expansion projects, especially those involving traditional construction due to spiralling costs, high interest rates and general economic uncertainty.
Every day challenges
We talk to businesses every day who face the challenge of wanting to grow and expand but not having the physical space and capacity to do so. We are seeing a trend, with businesses across the manufacturing, logistics and supply chain sectors, looking towards temporary buildings as a safer, smarter, lower-risk option to expand during these uncertain times. This is especially relevant when there is reluctance to commit to large, expensive, high risk permanent builds. This article outlines why a temporary building solution is one of the smartest ways to get the space you need in the current economic conditions.
70% cheaper than traditional construction
Temporary buildings deliver the space you need to grow at a fraction of the cost of a permanent solution. This cost reduction typically reaches around 70% because of several structural, manufacturing and operational efficiencies. Firstly, no foundations or major groundworks are required, eliminating piling, drainage and excavation which is operationally disruptive, time consuming and costly. You benefit from lower design and labour costs as our team produce the design and a small specialist team install the structure in a matter of days.
The production process is highly efficient, with the building manufactured off-site, using precision technology. This delivers a high-quality structure, ready for quick assembly. There is minimal plant, no “wet-trades” or prolonged site management overheads such site accommodation and welfare. This also protects projects from labour shortages and weather delays and their associated costs.
More flexible than MMC
CAPEX protection
Temporary buildings offer one of the most flexible procurement pathways of any building solution. Once your building has been designed, there are three, quick and cost-effective purchase options:
Buy: Save up to 70% compared to a traditional building. You will own the asset outright, enabling you to expand the structure over its 20+ year lifecycle. As you will own the asset, if you no longer need the structure it can be sold or re-located to a different site.
Hire: A low risk, low CAPEX route with flexible rental terms. You can still customise your building when renting, giving you a tailored temporary building solution. Simply return the structure at the end of the rental or extend the rental if required.
Finance: spread the cost of your building with predictable monthly payments. This can be through either a Hire Purchase or Finance Lease agreement, enabling you to align costs with cash flow and operational demand.
A unique financial advantage
As temporary buildings are demountable, they hold a residual value and resale potential. Because the structure can be dismantled, transported and resold, it retains a portion of its value, even after years of use. Temporary buildings also eliminate major end-of-life costs. A permanent warehouse requires full demolition, waste removal and sometimes ground remediation. A temporary building can be removed in days with minimal reinstatement. This simple turn-key exit strategy is unique in the industrial building sector, meaning you control when and how the structure leaves your site.
This makes them one of the few building solutions where CAPEX can be recovered at the end of the building’s lifecycle. The structural mobility further reduces the risk of being tied to a single location and ensures your investment continues to deliver value throughout its life. They also provide other benefits, for example you can reconfigure the structure to meet new operational needs or change the size of your building as your needs change.
Summary
In summary, speed reduces risk and cost. Our end-to-end service removes consultant and professional services costs and the production efficiency and installation methodology provides a high-quality structure at a fraction of the cost compared to traditional buildings. Finally the purchase options give you greater control and agility to sell your building if business needs change or you can simply hire and return the structure at the end of the rental. Ready to grow smarter? Contact our team to see how you can grow with a lower-risk temporary building:
