The UK needs to build more homes, faster and to a higher standard. The Industrialising and Digitalising Construction Challenge is transforming how homes and public buildings are designed, manufactured and delivered, using digital tools and modern manufacturing to cut waste, reduce costs and raise quality.
The built environment sector in the UK:
- contributes around £568 billion to the UK economy every year
- contributes 24% of national gross value added
- accounts for around 3.8 million jobs (12% of total workforce)
Productivity remains around 23% below the national average. Closing that gap could unlock up to £27 billion in additional economic output over time, while creating up to 380,000 new jobs.
The challenge programme will work with government and industry to bring together aggregated demand with digitally configured designs and certified, interoperable manufactured components into a national digital marketplace.
The first area of focus is social housing, with a longer-term ambition to develop a system that can be scaled across all government procured construction and beyond.
Liverpool City Region has been selected as the first national pilot area for the challenge. Working directly with the Combined Authority, this first phase will trial the approach on at least two social housing schemes.
Objectives
By 2027, the challenge will have delivered:
- a framework for standardised digital designs, components and manufacturing processes
- pilots progressing across at least two social housing programmes, demonstrating sector-wide potential for re-use
By 2030 the challenge will have delivered a:
- digital marketplace for industrialised construction
- model for wider industry scale-up to respond to the new opportunities
How we will do it
The High Value Manufacturing Catapult is supporting delivery of the challenge by bringing together manufacturers, digital specialists, housing providers and public-sector clients. By aligning standards, digital tools and commercial frameworks, the programme aims to give UK industry the confidence to invest in skills, technology and capacity. This will build a more resilient and productive construction sector.
The scale-up model and digital marketplace are being co-developed with industry and designed to be self-sustaining beyond the life of the programme.
The challenge will learn through doing, including working with live social housing schemes in Liverpool City Region providing real-world evidence to inform national scaling.
Ask a question about the Industrialising and Digitalising Construction Challenge
Email: idcc@hvm.catapult.org.uk
We aim to respond within 48 hours.
Last updated: 23 July 2026