Celebrating 70 years in operation, Premier Modular has become a key player in the UK modular construction sector. While ‘modern methods of construction’ often evokes nascent technologies, the company shows that longevity and innovation go hand in hand. In an EXCLUSIVE interview with Construction Wave, it reflects on its journey from 1956 to the present day, with revenue, currently topping £100 million, to increase, and profitability set to double by 2030, as it redefines what offsite manufacturing can achieve.
Summary
- EXCLUSIVE: Revenue and profitability growth targets revealed
- Diversification: How rental revenue is reshaping the business by 2030
- International expansion: Why Northern Europe was key for modular firm
- Sustainability: Setting benchmarks for sustainable building practices
- Technology: AI and digital tools transforming construction
David Harris has led Premier Modular as managing director since 2020, after nearly a decade as divisional director, building on his experience at Britspace Modular and Gateway Pods. Joining him in 2024, Craig Malloy, who brings senior finance experience from Garic, Aalberts, AES Engineering, Eaton, and Tarmac, helps oversee multi-million-pound operations, acquisitions, and complex projects, shaping Premier Modular’s financial strategy and profitability.
“Construction itself is a critical, essential role in society,” said Harris. “In the UK, we’ve got an almost crumbling infrastructure – from education and healthcare to military accommodation, airports, railways and roads. The sector is somewhat archaic. Studies show only 25 to 40 pence per pound goes on the product itself, revealing inefficiencies in contracting, partnerships, and the sheer number of parties involved in delivering a construction solution.”
Harris believes modular has a “huge part to play in changing the sector,” citing cost certainty, environmental benefits, and safer, faster factory-based production. “Once the modular industry can scale up enough to meet demand, its potential to transform construction is enormous,” he added.
The UK modular market is on an upward trajectory, projected to grow from £13.6 billion to £16.6 billion next year, and Premier Modular has positioned itself to capitalise on this expansion by establishing a premium brand – selling off its single-use cabin fleet and becoming the UK’s only dedicated modular specialist at the time. “We made the decision to walk away from contracts that didn’t meet our standards,” said Harris. “We weren’t afraid to let competitors pick up work that didn’t fit our terms, because protecting the business and managing risk is our focus.”
Central to its model is a balance between permanent solutions and a growing rental market, offering flexibility while stabilising cash flow. Currently, rental accounts for around 55 per cent of revenue, with projections suggesting it could reach 75 per cent by 2030. “A semi-permanent or temporary solution is often a far better choice for clients,” said Harris. “It gives them ultimate flexibility, and it allows us to maintain strong financial health while scaling efficiently.” For Malloy the mix of the permanent and rental business helps cash flow “tremendously”. “The rentals, often two years plus with extensions, provide ongoing cash, while permanent projects, though lumpy, allow upfront payments and help keep the factory full, enabling us to manage cash closely, reinvest in the business, and produce more units.”
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And while Premier Modular’s primary focus remains the UK, the company has expanded into Northern Europe, including the Netherlands, Belgium, and northern Germany. These markets mirror the UK’s demand for modular solutions, and with Rotterdam as a central logistics hub, the company can efficiently deliver units across the region, replicating its successful UK rental model.
Its growth strategy also addresses broader industry challenges, such as labour shortages and complex regulatory demands. By prioritising premium solutions and selectively choosing projects, the group mitigates risk and maintains profitability, with a financial model that combines rental and permanent sales domestically and abroad to ensure steady cash flow even in capital-intensive environments.
The modular sector has faced a number of high-profile insolvencies, rescues, and offsite manufacturing closures in recent years, driven by high overheads, slow planning approvals, and, in some cases, the impacts of the COVID-19 pandemic. While Harris acknowledged lingering scepticism around modular’s durability and aesthetic appeal compared with traditional construction, he noted that modern modular buildings now look identical to conventional structures and stand the test of time. “The most fundamental difference,” he said, “is that companies with a strong rental focus alongside sales are in a far better financial position.”
The key is to grow steadily, protect the business, and focus on delivery, with Malloy adding: “We’ve got a very good strategy around what kind of projects we want to take on and in which sectors and which clients we want to work with […] we have the key metrics in place to ensure the right margins and efficiencies, and we manage our cash throughout the whole lifecycle of a project, which stands us in good stead.”
Sustainability and technology are central to the company’s strategy. Premier Modular is on track to achieve net-zero operational emissions by 2040, with intermediate milestones in 2030 and 2035. Its factories have been zero waste to landfill for five years, are solar-powered, and leverage advanced recycling and energy recovery processes. Beyond operations, the company helps clients reduce the carbon footprint of modular buildings, offering guidance from water efficiency to AI-enabled energy management.
Technology also remains a cornerstone of its approach. Building Information Modelling (BIM) is now standard across all permanent projects, enhancing precision and reducing errors, while early-stage AI applications – from accounts payable automation to predictive insights on unit usage – are helping drive efficiency. “Our team recently explored the idea of AI as a teammate,” said Harris, with Malloy adding that there was lots of opportunity despite it being quite early in the sector. “Businesses are playing with lots of different ideas and we’ve got a fairly good list that we will have for the next 12 to 24 months of what we’d like to get done, so I think it will add a lot of value to the business.”
Now as it looks ahead, Premier Modular sees the next 5-10 years as a period of “opportunity”. With UK infrastructure ageing and labour resources constrained, demand for modular solutions is set to rise. Revenue, currently just over £100 million, is projected to grow 50-60 per cent to roughly £160 million by 2030, with profitability expected to double to nearly £15 million. Careful contract selection, technological integration, and sustainability leadership position the group to continue shaping the modular construction sector.
“For Premier Modular, the opportunities are huge – whether the government spends heavily on CapEx or not […] modular buildings, rental or permanent, can deliver cost certainty, flexibility and speed, and as long as we stay at the premium end, we’re confident the next decade offers massive potential for growth,” said Harris.
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