Merit is a construction company of a different kind – utilising advanced 4D BIM modelling technology and a product-based approach, it delivers buildings in an entirely unique manner – fast and cost-effectively, through offsite construction and digitalised manufacturing with a Pre-Manufactured Value of 75%-90%.
It is not only time and efficiency that differentiate Merit from others. The company believes that through intelligent use of new technologies, renewables, heat pumps and heat-recovery systems, it is entirely possible and economically viable to produce zero Scope 1 carbon emission high-tech industrial facilities.
“All Merit’s buildings are built to the BREEAM Excellent and EPC-A standards, and as a vertically integrated business, the company is well on the way towards reducing the upfront and embodied carbon for Scope 2 and 3 emissions,” says CEO Tony Wells.
Another good year
Since we spoke to him last year, the Northumberland-based company has continued to successfully disrupt the construction industry, enjoying a steep growth with a 46% increase in consolidated revenues to £88.4 million and EBITDA of over £9 million, representing a 99% increase over 2022.
“The 2023 results are a testament to our commitment to excellence and innovation, as we favour an automated and digitally-led approach, which delivers complex high-quality buildings three times faster than a traditional solution.”
Investment is an integral part of Merit’s success, says Tony Wells, pointing out that the company spends about 12 times the industry average on R&D. “We have invested nearly £5 million in new intellectual property to continually optimise and refine our product offering, as well as investing in new capital equipment spending over £8 million this year. We are a productivity-focused company, hence automation and digitalisation are a must. We have also further enhanced our offsite approach in 2023 with a 4,087 m2 expansion at our Cramlington-based offsite manufacturing facility.”
Wells reflects that the climate emergency has pushed innovative ideas, bringing new opportunities for disruptive innovation as the transition away from fossil fuels has dramatically changed the way of designing buildings. “Rather than being reluctantly forced into change, which is the case for most of the construction industry, we see this development as a great opportunity for growth.”
Green buildings
The company boasts an impressive portfolio of completed projects all across the UK, and the number of clients open to new ideas, and aware of the necessity to mitigate climate change, is increasing. Merit’s recent projects include Berwick’s long-awaited new, 10,500m2 community Hospital, an investment worth £35 million, Solihull Hospital’s new Elective Hub (Operating Theatre Block) and a new-therapy-led unit for Norfolk Community Health & Care NHS Trust, on site at Norwich Community Hospital.
The company also delivered the UK’s first CAR-T Cell Therapy Manufacturing Facility, utilising its FLEXI POD® platform – a hybrid solution for the construction of high-technology facilities – to mix modern methods of construction with an offsite manufactured fit-out using a Pre-Assembled Module and POD strategy, three-quarters of the build – 900 tonnes – being manufactured offsite at Merit’s Northumberland-based factories.
“That project was a great example of our capabilities. What would typically have been a five-year build, was achieved in 22 months including planning, with the first areas of GMP available in only 17 months,” says Wells.
Similarly impressive achievements include the Piramal antibody drug conjugate (ADC), a three-storey facility project that was delivered 2.5 years faster than traditional design and build, as well Moderna’s new clinical biomarker laboratory at the Harwell Campus, Oxfordshire, to be delivered using Merit’s UltraPOD®+ platform, promising an eleven-month timescale for delivery with 92% Pre-Manufactured Value.
Productive by automation
Merit is currently operating in the healthcare, biotech, pharmaceutical, semiconductor, aerospace and battery tech sectors, and Wells affirms that using Merit platforms, the company can configure any shape, height, scale of building that the client wishes in a technical environment. “The more successful completions we have, the faster we can move from ‘early adopters’ to the next level of clients who want to see tangible proof of our construction method first,” says Wells.
He reflects that although modern methods of construction (MMC) have had some negative press recently, modularity and offsite production can be successful. “It just needs to be a radically disruptive solution, with a strong focus on productivity.”
“Our product platform designs are proven to deliver real, tangible growth, and are built to enhanced quality standards compared to traditional construction, whilst also promising better performance, quality, reliability and 60-year longevity. Net zero remains a key driver for us and is the focus of significant R&D investment in 2024.”
“Our parametric cost modelling enables real-time cost feedback during design development to deliver affordable fixed-price cost certainty – unique in construction. Bringing online increased factory automation for further productivity improvement and the introduction of our V7 platform will be key objectives for Merit in the coming year.”
Attractive employer
Merit’s innovative construction methods were widely recognised last year as the company took home the prizes for ‘Project of the Year by a Specialist Contractor’ and ‘Offsite Specialist of the Year’ at the CN Specialist Awards 2023. These award wins are testament to Merit’s pioneering approach, which prioritises disruptive innovation, and measurable productivity growth within the sector.
And also testament to its team and its collective expertise. “We are a diversified company with a high female representation offering an exciting, innovative, digital environment, as well as a good work-life balance. We work, grow, learn and have fun together, fostering an environment where people can contribute, innovate and excel,” says Wells, adding that Merit has implemented an extensive apprenticeship programme and has multiple graduate programmes with local universities to grow its future resource.
Looking ahead, he affirms that there are clear opportunities in the UK’s healthcare, biotech, semiconductor and EV battery sectors. Although firmly rooted in Northumberland and with a strong focus on ‘made-in-Britain’, he reveals that the company is now looking further afield. “Export is now also in the pipeline. We are starting to look primarily at the United States, but other parts of the world are also under consideration.”
