Would a National Capacity Marketplace Work for MMC?
The idea of capacity sharing within the MMC sector leads naturally to a broader question. If underutilised manufacturing capacity exists across multiple organisations, and if demand remains unevenly distributed, could a more structured approach improve how that capacity is used?
One proposed solution is the development of a national capacity marketplace.
In simple terms, this would be a platform designed to provide visibility of available production capacity and allow it to be matched with demand in a more coordinated way. While the concept is relatively straightforward, its implications for how the sector operates are significant.
From Fragmentation to Visibility
Construction continues to operate as a fragmented system. Projects are delivered by multiple organisations, each working within their own timelines, commercial structures and information flows. As a result, visibility across the wider system is limited.
This lack of visibility makes it difficult to answer relatively simple questions:
• Where does spare manufacturing capacity exist?
• When is it available?
• What type of production can it support?
Without this information, capacity cannot be effectively aligned with demand, even where both are present.
A national marketplace would aim to address this gap by creating a shared layer of visibility across the sector.
What a Capacity Marketplace Could Involve
In practical terms, a capacity marketplace would function as a digital coordination layer rather than a traditional procurement tool.
Manufacturers could use it to indicate:
• Available production windows
• Types of systems or components they can produce
• Geographic constraints or logistics considerations
Clients, contractors or programme managers could then use this information to make more informed decisions about where and how work is allocated.
The objective is not to replace existing procurement routes, but to support better utilisation of the capacity that already exists.
The Potential Benefits
If implemented effectively, a capacity marketplace could address several of the inefficiencies currently affecting the MMC sector.
Improved visibility could enable underutilised facilities to be matched with projects that require additional production capacity. This would reduce the periods of inactivity that contribute to downtime and financial instability.
More consistent allocation of work could also improve overall system performance by reducing the peaks and troughs associated with fragmented pipelines.
At a broader level, the introduction of a shared platform could encourage greater coordination between production, logistics and delivery, creating a more integrated system.
Lessons from Other Sectors
The concept of a capacity marketplace is not unique to construction.
In logistics, digital platforms are routinely used to match freight with available transport capacity. In manufacturing, shared production networks allow organisations to redistribute work in response to changing demand.
These models are underpinned by a number of common principles:
• Standardised data
• Transparent availability
• Clear commercial frameworks
• Trust between participants
While construction operates in a more complex and less standardised environment, these principles remain relevant.
Data and Standardisation Requirements
For a capacity marketplace to function effectively, a consistent approach to data is essential.
Capacity must be defined in a way that allows meaningful comparison across different facilities. Availability must be communicated clearly and updated regularly. Capability must be described in a way that reflects what can actually be delivered.
Research from the Cambridge Centre for Smart Infrastructure and Construction highlights the importance of data consistency and digital integration in enabling more efficient infrastructure delivery.
Without this level of alignment, a marketplace risks becoming another layer of complexity rather than a tool for coordination.
Commercial and Contractual Considerations
As with any form of capacity sharing, the commercial structure is critical.
A marketplace would need to address questions such as:
• How is shared capacity priced?
• Who is responsible for quality and delivery?
• How is risk allocated between parties?
These are not minor details. They sit at the core of how construction contracts are structured.
Without clear and workable frameworks, participation is likely to remain limited, regardless of the potential benefits.
Trust, Participation and Adoption
The success of a capacity marketplace would ultimately depend on participation.
Manufacturers would need to be willing to share information about their capacity. Clients and contractors would need to be confident in using that information to allocate work.
This introduces a more subtle but equally important factor: trust.
Trust that commercial interests will be protected.
Trust that quality standards will be maintained.
Trust that collaboration will not undermine competitiveness.
Building this trust is likely to take time, and may require initial support from industry bodies or public sector organisations.
Centralised or Distributed Models
Another important consideration is how such a marketplace would be structured.
A fully centralised platform could provide consistency and scale, but may be seen as restrictive or difficult to implement. A more distributed approach could offer flexibility, but may limit coordination across the wider system. In practice, a hybrid model may be more realistic. This could involve regional or programme-based platforms that operate within a broader framework of shared standards.
Early Steps Towards a Shared Capacity Model
While the idea of a national capacity marketplace may appear ambitious, elements of this approach are already being explored within the sector.
Recent industry collaboration, including work led by Buildoffsite, has begun to examine how underutilised capacity could be better understood, measured and, where appropriate, shared across organisations.
Initiatives such as the development of capacity visibility platforms and pilot frameworks are beginning to test how data, coordination and commercial structures could support a more integrated approach to production.
These early steps are not yet a fully realised marketplace.
However, they indicate a clear shift in thinking.
The focus is moving from isolated optimisation towards system-level coordination, where the goal is not simply to maximise individual output, but to improve how capacity is used across the sector as a whole.
From Concept to Implementation
The idea of a national capacity marketplace is ambitious, but it does not need to be implemented at full scale from the outset.
A more practical approach would be to test the concept through targeted pilots. These could focus on specific regions, sectors or programmes, allowing the industry to explore:
• How capacity data can be structured and shared
• What commercial models are viable
• How logistics and delivery can be aligned
These pilots would provide valuable insight into what works and where further development is needed.
Conclusion
A national capacity marketplace offers a potential way to address one of the MMC sector’s core challenges: the disconnect between available capacity and actual delivery.
By improving visibility and enabling more flexible allocation of production, it could reduce downtime, improve utilisation and support more consistent output.
However, the concept also introduces significant challenges, particularly in relation to data, commercial frameworks and trust.
The question is not simply whether a marketplace could work in theory. It is whether the sector is willing to adopt the level of coordination and transparency required to make it work in practice.