Rising labour costs are driving a smarter way to build

Rather than freezing delivery, an increase in wages is driving contractors to shift toward modern methods of construction. Light gauge steel framing is leading that evolution, writes Angela Mansell of Mansell Building Solutions.

The UK construction product manufacturing is finally showing signs of growth, according to the Construction Products Association’s latest State of Trade Survey – a rare positive in a market wrestling with inflation, skill shortages, and wage escalation.

But hidden in the data is a clear signal for change: labour costs will continue to increase, impacting the property industry’s bottom line. If unchecked, this will make bridging the viability gap even harder for many projects.

UK site wages are forecast to rise 7.1% annually through 2025, and by more than 16% by 2030, according to the CPA’s survey. Skilled trades are increasingly scarce, with average hourly rates topping £30.

LGSF offers a solution, requiring less time without sacrificing on build quality. For instance, formwork, reinforcement, and casting for concrete mid-rise projects can demand up to 30% more hours than an equivalent LGSF build. On a 10,000-hour scheme, that’s roughly 3,000 fewer hours – or £90,000 in direct labour savings. As wages rise, so does the competitive gap.

Rising labour costs don’t have to be a threat. They’re a catalyst for smarter, more efficient construction. LGSF is leading that change.

The identity: building smarter, safer, and locally

LGSF isn’t just about steel. It’s about certainty in cost, time, and delivery. Where traditional methods depend on large, fluctuating workforces, steel-framed MMC builds rely on precision and process.

Manufactured offsite in controlled factory conditions and installed by skilled regional teams, LGSF offers developers predictability where timber and concrete cannot.

Timber’s popularity has pushed prices up 10%-15% per year due to global demand and supply constraints. Steel, supported by local recycling and production infrastructure, remains consistent and secure – enabling sustainable construction without volatility.

Mansell has provided the LGSF for Cityheart’s Stopford Park, part of the Royal Garden Village in Stockport. Credit: Mansell Building Solutions (RGV Stockport)

The transformation: redefining construction for the next decade

For those that don’t know, Mansell Building Solutions, a specialist MMC Contractor, are leading that change from our Chadderton MMC factory – Greater Manchester’s only dedicated facility for off-site panelised production. Our integrated approach of manufacturing plus on-site delivery helps developers and main contractors:

• Reduce programme durations
• Maintain consistent quality
• Achieve sustainability targets
• Control costs and risk

We have proven this through our work with Oak Construction Projects Ltd on Stopford Park, where we have delivered the LGSF and have now moved to inside where work on the extensive internal finishes package has begun.

Located on Greek Street in Stockport, this scheme (designed by DAY Architecture), forms part of Cityheart’s Royal Garden Village development. It comprises a new-build, six-storey residential block providing 62 high-quality apartments.

We delivered Stopford Park’s frame in a rapid 70 days (14 weeks) – a 10-day improvement on the original programme.  That’s an example of how we do exactly what we say, build certainty with programme timelines.

With many 2025 project start dates now slipping into 2026, and BCIS forecasting cost inflation of 14% (construction) and 15% (tender prices) by 2030, offsite steel systems are no longer an alternative – they’re the advantage.

LGSF is no longer a niche option – it’s the smarter choice for mid-rise development. Higher labour costs aren’t a roadblock, they’re an incentive to build differently.

• Angela Mansell is managing director at Mansell Building Solutions