Donaldson Timber Systems

Stewart Milne Group is selling its market leading timber systems business to focus on investing in the growth of Stewart Milne Homes across Scotland and North West England.

The independent housebuilder and manufacturer of timber frame for offsite construction is capitalising on Stewart Milne Timber Systems’ (SMTS) position as the recognised UK market leader by putting the business up for sale at a time when the market is set to grow exponentially.

Demand for timber frame has been rising rapidly and its use is anticipated to double in the next five years to meet government housing targets. As housebuilders tackle the dual challenge of achieving net-zero carbon targets and dealing with acute skills shortages, they are increasingly turning to modern methods of construction using renewable sources.

Stewart Milne Timber Systems has experienced “stellar” growth in the last five years with a current order book of close to £300million. This growth is attributed to a combination of technical and manufacturing excellence with strong customer relationships with the UK’s leading housebuilders, including Barratt, Taylor Wimpey and CALA.

The £100m turnover business, which employs 400 people, has become the undisputed market leader with around 20% of market share.

Alex Goodfellow, Stewart Milne Group Managing Director – Strategic Development, who is leading the sale process, said: “With the scale of the opportunity in the growing timber frame market, SMTS presents a highly compelling investment proposition. We anticipate attracting a high level of interest from potential buyers who will invest in order to capitalise on that opportunity.”

Stewart Milne Group has been investing in SMTS’ product and manufacturing innovation and capacity at its factories in Aberdeen and Witney to keep up with the extremely strong demand. Increased volumes have led to the creation of a third production facility in central Scotland.

Stewart Milne Group’s CEO, Stuart MacGregor, added: “To keep pace with demand, it’s clear that further investment in production capacity in both Scotland and England will be required. As a privately run, independent company, we need to prioritise where we invest in the future.

“Since reopening last summer, after the initial COVID lockdown, we’ve seen record levels of activity in the UK housing sector. The strength of our business with its award-winning developments, new homes range and record sales has enabled us to capitalise on these favourable market conditions and positioned us superbly for future growth.”

“The buoyancy of the current homes market, however, does mean that land prices in Scotland and North West England are increasing rapidly” commented Stuart MacGregor.

“We have therefore chosen to divest our successful timber systems business to increase investment in additional sites for Stewart Milne Homes. Using our considerable land buying experience to take advantage of the development opportunities, we will invest in land in the short term and concentrate on growing our homes business in the longer term.”

Once a sale has completed, Stewart Milne Group will be primarily focused on investing in the growth of its homes business in Scotland and North West England, reinforcing its reputation as one of the country’s leading independent housebuilders.

Donaldson Timber Systems (DTS) is proud to be partnering with West Herts College as it leads the sustainable challenge, encouraging future workforces to focus on timber frame building solutions.

As part of an industry collaboration, we will work with Hertfordshire college to recruit 12 apprentices who will work with DTS trusted supply chain partners, SE Carpentry and Hyspec Carpentry & Construction.

The new vocational apprenticeship programme, which runs over two years, will allow students to gain a Level 2 Apprenticeship in Timber Frame – MMC (Modern Methods of Construction) while also completing theoretical and practical studies in class.

Having taught carpentry at West Herts College for more than 20 years, this new partnership enhances the curriculum offering, relating the key skills developed and nurtured, and applying this to MMC and timber frame construction.

West Herts College director, John McMahon said: “This is an exciting opportunity for students to progress to an apprenticeship with a forward-thinking company like Donaldson Timber Systems.

“Students really stand to benefit from this partnership. They will pick up a modern qualification in an expanding sector while working with an industry leader – especially with the added focus of this program on green, sustainable construction.”

It is this commitment to apprenticeships and hope of attracting people into the sector that appealed to DTS, who hope that encouraging young people to work primarily with modern methods of construction (MMC) will not only prepare them for the future, where skills shortages, housing demand and sustainable practices is putting pressure on the sector, but ultimately drive the construction industry’s efforts to tackle climate change.

Simon Horn, Technical Development Manager at DTS said: “Timber frame is still regarded in many regions across the UK as a relatively new solution to the housing crisis. However, it’s a construction discipline that DTS has long been passionate about, and we’re very excited to be sharing this passion with future workforces.

“Many of our team ‘started on the tools’ as apprentices, and we’re thrilled to now pass on our experiences. This is a great opportunity for young people to get involved, especially at a time when climate change and sustainable building practices is high on the agenda across the UK.”

To find out more or apply:

https://www.getmyfirstjob.co.uk/search/details/142757/1/intermediate-apprenticeship/construction/bedfordshire/apprentice-timber-framer-%E2%80%93-mmc-(modern-methods-of-construction

https://www.getmyfirstjob.co.uk/search/details/142745/1/intermediate-apprenticeship/construction/bedford/apprentice-timber-framer-%E2%80%93-mmc-(modern-methods-of-construction

Our timber frame work on the Vistry site at Kirkleatham, Redcar, is in the news courtesy of Richard Bellis, Senior Reporter at The Northern Echo.

The article discusses the visit from Chris Pincher, Minister for Housing, who wanted to see the investment being made into new houses in the area.  A recent government announcement stated their intention to help thousands of people onto the housing ladder with funding worth £8.6 billion being allocated across the country.

On a visit to Redcar Housing Minister Chris Pincher said: “Redcar is at the heart of our levelling up agenda. It has received a huge cash injection from the towns fund and money from the coastal community fund.

“So we want to invest in the infrastructure and the skills in these areas.

“Building these houses will provide a base to do that, these homes will be a mix of rented, shared ownership and fully owned houses.

“This is so that everyone has the opportunity to get on the housing ladder.

“Usually when big housing developments are started then locals have one or two concerns. However, with this site, there has been no concern, in fact, people have been wanting.

“They are seeing their area get enhanced with really nicely designed estates and hopefully it will all help in levelling up the town.”

Jacob Young, Conservative MP for Redcar, said: “It’s fantastic to see the new homes that are being built by Vistry, Linden and Beyond Housing, but also to hear about the new plans for a supported living coming to this site as well.

“This is all about our plan to provide more homes locally, for local people, in the right places, to help people get their first home but also to help people transition out of homeownership into and into care in the community.”

Donaldson Timber Systems (DTS) has donated timber offcuts to local Witney charity, Guideposts Trust, in a first step in the organisation’s fruitful new charity partnership.

Guideposts Outdoor Wellbeing Hub received its first delivery of wood from the UK’s leading offsite timber frame manufacturer last month, which will be used in gardening and woodwork classes at Guideposts Dig ‘n’ Grow service for adults with learning difficulties and Guideposts Dreamcatchers Forest School for young people with additional needs.

As the partnership continues, the donated wood from Witney based DTS will be used to make raised beds for Dig ‘n’ Grow attendees to grow plants, flowers and vegetables; as well as in woodworking classes which help to develop skills such as dexterity while providing the opportunity for participants to connect with nature.

DTS’ construction process results in roughly 1.6 thousand tonnes of timber offcuts, a natural result of offsite manufacturing methods and, as a company, Donaldson Timber Systems has always had an environmental conscience, ensuring that 100% of its excess material is recycled. In this way, it contributes to the current government aim for the UK to become carbon neutral by 2050.

Shelley Benwell, Marketing Manager, Donaldson Timber Systems, said: “Not only are we are committed to reducing and recycling the offcuts produced from our timber systems as we work towards reducing environmental impacts, we also believe in supporting the local community and those who live and work within it.

“Guideposts do amazing work in Witney with their Dig ‘n’ Grow service, providing locals with the chance to connect with nature, get outside and learn valuable, transferable skills which will benefit themselves, the local area and community. We are proud to support their work, and we look forward to seeing how else our timber is used.”

Tania Kirby, Senior Fundraiser for Guideposts said: “It’s always great to get backing from local businesses who share our values, and SMTS have been very generous in providing materials for our classes and workshops which aim to engage adults and young people in the area in planting, woodwork, nature crafts and cooking, all in a safe and social setting.”

REPRESENTATIVES from some of the housing industry’s biggest names have been announced as speakers at one of the Midlands’ leading construction events.

Speakers from Cundall, Barratt Developments, Stewart Milne Group and the Welsh government will present at June’s CE Midlands Housing Summit, organised by Constructing Excellence Midlands.

The summit’s keynote presentation will be delivered by Colette McCann, Birmingham City Council’s acting assistant director of housing development, who will detail the city’s 2040 plan for affordable housing, as well as introducing how attendees can get themselves involved in the programme.

Also leading the lineup is Cundall’s Richard Twinn, who will detail how Future Homes Standards will affect those involved in the provision of housing going forward.

Stewart Dalgarno, Stewart Milne Timber Systems’ Director of Product Development will be talking about the innovative AIMCH project (Advanced Industrialised Methods for the Construction of Homes) where we are a lead partner.

The event – which takes place virtually on Wednesday, June 23 – gives attendees chance to get further insight into some of the key issues facing the industry, such as the Future Homes Standard, carbon net zero and the growing role of modern methods of construction and modular homes.

Andrew Carpenter, chief executive of Constructing Excellence Midlands, said: “We’re delighted to have secured such a stellar lineup for this year’s Housing Summit, which promises to provide a real insight into how both the public and private sector are working to tackle the UK’s housing crisis.

Constructing Excellence Midlands is working in partnership with Birmingham City Council in helping them achieve their ambitious housing targets.

Colette McCann, acting assistant director of housing development at Birmingham City Council said: “CE Midlands provides a unique opportunity and platform that brings together a wide range of members within the construction industry.

“I am very much looking forward to attending the CE Midlands Housing Summit to discuss innovative ideas and solutions to the challenges our sector faces, particularly in the delivery of affordable housing.”

Andrew Carpenter continued: “As we come out of the other side of the pandemic, housing has to be one of the critical areas of the construction industry. With house prices continuing to rise, affordable, sustainable housing is coming to the fore more than ever before, and we have pulled together a speaker lineup that reflects this.”

To register to attend the CE Midlands Housing Summit, click here

Annual house price growth rose to 10.9 per cent in May, the highest level in nearly seven years.

Prices shot up 1.8 per cent month-on-month, following a 2.3 per cent rise in April, according to new Nationwide data. The new record average house price is £243k, up by almost £24k over the past twelve months.

A year ago, activity collapsed in the wake of the first lockdown with housing transactions falling to a record low of 42k in April 2020. However, activity surged towards the end of last year and into 2021, reaching a record high of 183k in March.

Manufacturing activity expanded at an unprecedented rate in May according to the closely watched IHS Markit/CIPS Purchasing Managers’ Index. The sector saw an index reading of 65.6 in May, a record high for the month-on-month measure. That topped April’s 60.9 and July 1994’s 61.0, the previous peak. An index reading of 50 indicates no change from the previous month.

Production was up at one of the highest rates since records began, while new export orders rose at a survey-record pace. Stronger demand came from the EU, US and China with growth boosted by the unlocking of economies from Covid restrictions and ongoing vaccination programmes.

This all sounds very positive but a shortage of raw materials and some supply-chain disruption has inevitably pushed up purchasing costs again by a record high. This is a particular challenge across the new build sector:

• Housebuilders have currently sold many houses, but construction hasn’t started, meaning they can’t recover cost price inflation
• Manufacturers and suppliers are contracted for fixed price periods and can’t recover cost price inflation until these end

The likely outcome is that house price inflation will continue and allow housebuilders to recover their profitability on the next batch of houses released.

More worrying is whether smaller manufacturers and suppliers tied to fixed term pricing can survive the losses and stay in business.

As the price increases are demand driven, any easing requires a portion of the market to say enough is enough and slow down or stop. This is the worst outcome for everyone, even the opportunistic raw material suppliers. Every bubble bursts if it is over-inflated. It would be better to take the long-term view and allow it to float along happily at a reasonable level.

For those that have been in and around the timber industry for many years, the drive for sustainability isn’t a new thing. The inherent properties of using timber from well managed forests has always felt like a good space to be in and creates a sense of doing the right thing for the planet. As the interest and demand in behaving this way quite rightly increases, the hardest bit can be keeping up with the latest terminology!

Firstly, we start with the obvious need to reduce greenhouse gas emissions and halt global warming. In amongst the bigger subject of sustainability we have gone through terms such as carbon footprint, embodied carbon (the same thing – embodied carbon is the carbon footprint of a material), sequestered carbon and now zero carbon and net zero carbon. All are terms with carbon in them but with differences either nuanced or radical, none with international or even national definitions, formulae or algorithms.

The best way forward, and what a number of companies and organisations have done, is to define the terms internally so they are understood and can set improvement targets appropriately.

The carbon agenda is heavily related to energy efficiency and in that context zero carbon and net zero carbon become useful terms within a green energy programme and electricity generation. Zero carbon is the ultimate goal; energy generated without the need for carbon emissions, easily defined through wind, solar, wave and hydro power. Net zero carbon introduces the concept of offsetting but also the generation of electricity from burning biomass, on the basis that specific amounts of carbon released into the atmosphere is offset and absorbed with the planting of replacement biomass fuel stocks.

Each organisation will settle on what they believe is the right solution until inevitably the world will settle on some standardisation of terms. In the meantime, with our knowledge of sustainable forestry, responsible procurement processes and efficient design engineering, our path is focussed on a net zero carbon goal, in which the likes of biomass and offsetting play a significant role in our success.  Our sustainability strategy focuses on the future challenges facing our business and the actions we are taking to ensure a positive effect on our people, our planet and our product.

The language may follow but our role is to lead and do our bit for the greater good.

IFS’s Cloud ERP solution to help award-winning UK construction systems manufacturer digitize value chain and increase efficiency

London, April 8, 2021 – With the construction industry’s increasing focus on reducing both carbon footprints and build times, UK offsite timber frame manufacturer Stewart Milne Timber Systems decided to replace its legacy business system, which could no longer support its project-based business, with an industry-specific enterprise resource planning (ERP) solution from IFS.

To build greener, faster, and more cost effectively, the global construction industry is increasingly turning to offsite and modular construction methods. In England alone, it is estimated that 345,000 new homes are needed annually to keep up with demand. This is driving the need for innovative building systems brought to the market by manufacturers like Stewart Milne Timber Systems.

The company was running a legacy business software solution that could not fully support its long-term operational ambitions. Still highly reliant on paper-based, manual business processes and a multitude of data standards, Stewart Milne Timber Systems consulted several different sources to aid its decision-making.

With a goal to automate a considerable number of business processes and consolidate all data into a single source, we identified that a key ask for us would be a solution that offered a combination of robust industry-specific capabilities, such as project management, manufacturing, and a fully integrated finance and human capital management (HCM) solution, to support growth. Following a competitive evaluation process, the company chose IFS over solutions from other providers.

Craig Thornhill, Finance Director at Stewart Milne Timber Systems, said, “We chose IFS because of the team’s and the product’s deep industry expertise and capabilities. IFS Cloud ERP will help us increase efficiency, stay on quality and reduce the lead-time, downtime and processing time associated with the manufacturing and installation of offsite systems. IFS is a central pillar in our digital transformation journey, which will help us work smarter, quicker, and greener.”

Alan Laing, Managing Director, IFS UK and Ireland, added, “We are excited to be partnering with Stewart Milne Timber Systems providing them with our leading industry capabilities. These have been tested and fine-tuned through close customer collaboration with some of the most renowned names in the global construction and manufacturing sectors. With IFS’s open architecture, Donaldson Timber Systems will be able to expand their footprint to include new automation and robotic technology. We look forward to a long and mutually beneficial partnership.”

Learn more about how IFS supports businesses in the manufacturing space at www.ifs.com/corp/industries/manufacturing/.

We are proud to have been awarded a certificate on the NHBC Accepted Systems listing for our Closed Panel Timber Frames system “Sigma® II with factory fitted windows”. You can view the details here:  https://www.nhbc.co.uk/builders/products-and-services/techzone/accepted-systems

NHBC Accepts is the comprehensive review service for innovative products and systems from the UK’s leading new homes warranty and insurance provider.  They have been helping improve build quality through NHBC standards since 1936, providing warranty and insurance for around 70-80% of the new homes built in the UK each year.  The NHBC Accepts logo indicates that the product or innovation has been rigorously assessed, giving confidence to developers, investors, lenders and homeowners.

Our Sigma® II closed panel system is a robust and effective, award-winning solution to achieving high levels of fabric performance.  With excellent thermal performance and air tightness, the Sigma® II Build System offers reduced material and labour costs by using conventional materials in a more innovative manner.