{"id":512218,"date":"2025-02-06T12:46:03","date_gmt":"2025-02-06T12:46:03","guid":{"rendered":"https:\/\/www.constructionnews.co.uk\/?p=512218"},"modified":"2025-02-06T12:46:03","modified_gmt":"2025-02-06T12:46:03","slug":"reds10-chair-searching-for-the-holy-grail-of-productivity","status":"publish","type":"post","link":"https:\/\/www.constructionnews.co.uk\/sections\/long-reads\/interviews\/reds10-chair-searching-for-the-holy-grail-of-productivity-06-02-2025\/","title":{"rendered":"Reds10 chair: Searching for the Holy Grail of productivity"},"content":{"rendered":"

Reds10 chairman Paul Ruddick is on a mission to make modular work better for everyone<\/strong><\/em><\/p>\n

Offsite production could enable the construction industry to crack its productivity problem \u2013 but getting it off the ground has proven easier said than done, given the string of business failures in the sector over the past two years.<\/p>\n

In stark contrast, London-based Reds10 boasted a 70 per cent increase in turnover in its latest accounts, and its chairman and co-founder Paul Ruddick\u2019s vision is to grow into a tier one contractor.<\/p>\n

\u201cThe construction industry is ripe for productivity improvements, and we want to be at the forefront of that revolution\u201d<\/p>\n

Paul Ruddick, Reds10<\/h4>\n<\/blockquote>\n

Speaking to Construction News<\/em>, he says a \u00a31bn annual turnover is possible if the volumetric modular firm can find the \u201cHoly Grail\u201d of better productivity.<\/p>\n

\u201cOur ambition is to become a true industry leader,\u201d Ruddick says. \u201cNot just for growth\u2019s sake, but because at that size, we can really effect change. The construction industry is ripe for productivity improvements, and we want to be at the forefront of that revolution.\u201d<\/p>\n

Reds10\u2019s turnover has quadrupled in the past three years and risen sevenfold since 2020. While this year saw a deliberate slowdown to consolidate operations, Ruddick says that company revenue is still set to exceed \u00a3150m in 2025.<\/p>\n

A predictable pipeline of work via public sector education, defence and justice programmes is the main reason behind the firm\u2019s fast rise. For example, last August it won a place on the Defence Infrastructure Organisation\u2019s (DIO) six-year \u00a32bn accommodation alliance for the British Armed Forces.<\/p>\n

As part of this alliance, the firm is delivering four new modular accommodation blocks at RAF Marham in Norfolk, with the first set to complete early this year.<\/p>\n

Ruddick sees room for improvement in how Whitehall engages with modern methods of construction (MMC). \u201cWe need policies that not only promote MMC but also ensure clients understand its benefits and how to implement it effectively.\u201d<\/p>\n

Wider government policy is also not always beneficial. Ruddick describes this April\u2019s pending rise in employer National Insurance as \u201ca big hit to us, but as an industry we\u2019ve got to get on with it\u201d.<\/p>\n

DIO-related residential work, which includes Imjin Barracks in Gloucester for the British Army, reflects Reds10\u2019s evolving business strategy as it seeks to diversify its market presence.<\/p>\n

Ruddick expects Reds10 to grow further into the residential market, driven in part by the government\u2019s target of 1.5 million new homes being built during the current parliament.<\/p>\n

\u201cRelying on one income stream is risky,\u201d Ruddick says. \u201cHaving a range of sectors helps smooth out the peaks and troughs.\u201d<\/p>\n

However, he is conscious of the potential pitfalls for modular housebuilders. \u201cThe demand for social housing presents a tremendous opportunity,\u201d he notes. \u201cWe believe volumetric construction can be the answer, but it\u2019s about delivering a product that\u2019s cost-effective and high-quality. The industry has been burned by cases where modular hasn\u2019t worked. A lot of competitors went big really quickly, but unfortunately they didn\u2019t have the pipeline or product in place.<\/p>\n

\u201cBut there have been far more failures in traditional construction. The difference is no one is calling for traditional methods to stop. Our mission is to demonstrate that modular can succeed.\u201d<\/p>\n

Reds10 follows a vertically integrated method with fully in-house design to cut delays and waste. Blending technology with offsite production methods can break down silos between clients, designers, contractors and tradespeople, Ruddick says.<\/p>\n

At the heart of Reds10\u2019s strategy is its 27,900 square-metre complex of five factories in Driffield, Yorkshire. Ruddick says he is confident that with enhanced productivity, these facilities could generate up to \u00a3500m of revenue annually without requiring further expansion. But the broader construction industry must also change its mindset to properly embrace industrialisation, he adds.<\/p>\n

\u201cConstruction is the only major industry that missed the Industrial Revolution. Our goal is to change that by applying principles of industrialisation and repeatability, similar to the production line in a car factory. I passionately believe that we\u2019ve got the ingredients to improve productivity \u2013 the Holy Grail for our industry.<\/p>\n

\u201cEveryone talks about automation, robots and AI but I say \u2018no, we haven\u2019t even industrialised yet. Let\u2019s do that first and then move into automation\u2019.\u201d<\/p>\n

Reds10\u2019s aim is to tackle the 20 per cent of waste that Ruddick says characterises traditional methods. By focusing on upfront design, digital tools, and industrialised processes, the contractor aims to eliminate rework and inefficiency.<\/p>\n

\u201cMain contractors want to bear down on cost because they\u2019re lucky to make 2 per cent margin,\u201d he notes. \u201cBut why isn\u2019t everyone looking at their business model and going after the waste?\u201d<\/p>\n

\n

Paul Ruddick CV<\/h3>\n
    \n
  • 2021 to date:<\/strong> Chairman, Reds10<\/li>\n
  • 2005-2021:<\/strong> Founder and chief executive, Reds10<\/li>\n
  • 1997-2005:<\/strong> Quantity surveyor and project manager, Davis Langdon<\/li>\n
  • 1992-1997:<\/strong> Heriot-Watt University, Edinburgh (BSc in Quantity Surveying, MSc in Project Management)<\/li>\n<\/ul>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

    Reds10 chairman Paul Ruddick is on a mission to make modular work better for everyone Offsite production could enable the construction industry to crack its productivity problem \u2013 but getting it off the ground has proven easier said than done, given the string of business failures in the sector over the past two years. In …<\/p>\n","protected":false},"author":135716,"featured_media":512220,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ep_exclude_from_search":false},"categories":[79553,570,559,39315],"tags":[],"yoast_head":"\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\t\n\t\n\t\n