Offsite and modular construction are now central to Ireland’s housing response. With faster build times, consistent quality, and reduced environmental impact, offsite manufacturing features prominently in the government’s Housing for All strategy.
But anybody working in the Modern Methods of Construction (MMC) sector knows that delivering on this potential is not straightforward. Irish firms are facing significant challenges, which often require extra financial support to keep innovation moving.
So, what are the main hurdles? Let’s take a look at six of the biggest issues facing offsite and modular businesses in Ireland, and where government support, particularly the R&D tax credit, can make a difference.
Key challenges in offsite and modular construction
Scaling up production capacity: Expanding factories to meet demand involves investment in machinery, automation, and new processes, all of which require testing and adaptation.
Design and engineering complexity: Balancing structural integrity, airtightness, and energy performance with cost and compliance to Irish building standards is a constant challenge.
Material innovation and sustainability: Companies must reduce embodied carbon, meet circular economy goals, and trial recycled or bio-based materials.
Digital adoption: Integrating BIM, digital twins, or factory automation involves complex technical hurdles around interoperability and workflow.
Testing and certification: No product reaches market without proof. That means rigorous testing, re-testing, and accreditation, adding significant costs before a product can be launched.
Designing for factory production: Designing buildings for factory-controlled environments while still meeting the specific requirements of a site and ensuring compatibility between different modules is complex.
Challenges like these usually mean your team of engineers is engaged in systematic investigation, design work, and problem-solving. Under Ireland’s R&D Tax Credit scheme, much of this effort may qualify for relief, allowing companies to claim back up to 30% of their spend through a corporation tax reduction or cash refund.
How the government supports Irish innovation
The R&D Tax Credit remains one of the most useful supports to innovative Irish businesses. It offers a 30% credit on eligible R&D expenditure, reducing the financial risk of innovation and making it more viable to trial new materials, refine product designs, or adopt automation.
Enterprise Ireland also provides complementary schemes to encourage scaling and innovation. What makes the R&D Tax Credit different is that it applies to work already carried out, so firms are rewarded for the effort they have already invested.
What counts as R&D?
Do you work on…
- Developing new panel systems, jointing methods, or structural frames;
- Improving fire resistance, acoustics, or thermal performance;
- Testing recycled, low-carbon, or bio-based materials;
- Automating factory processes or integrating BIM workflows;
- Creating real-time quality monitoring or digital twins.
Or do you find yourself asking…
- How can we speed up assembly without losing quality?;
- Will this new material meet Irish fire and energy regulations?;
- Can we design lighter, more transportable modules without compromising strength?.
If so, there’s a good chance you are already carrying out R&D – and the related costs could qualify for tax relief.
In conclusion…
Offsite and modular construction will play a central role in meeting Ireland’s housing targets. But the technical and financial barriers are real. Recognising when your projects qualify as R&D makes it possible to recover a share of the costs and reinvest in further innovation.
At ABGI Ireland, our team of PhD-qualified consultants with backgrounds in engineering and construction work with firms to document and evidence their R&D in line with Revenue requirements. Even projects that appear complex or non-standard can often qualify once reviewed carefully.
To find out more, get in touch with ABGI Ireland.