Headwinds Still Exist for Modular Construction

Modularization has always had strong support from those engaged in multi-family housing construction. It is well accepted for health care facilities, hotels, and college dormitory projects. According to a recent survey the reason why is obvious. 90% of housing contractors claimed the modularization process improved productivity and quality, while increasing schedule certainty. More than 80% said they experienced improve cost predictability, while reducing waste and more importantly increased client satisfaction. When it comes to single-family housing units the acceptance, currently is not nearly as great. With architects and builders slow to embrace the change in building. But a 2019 McKinsey report concludes by urging industry players to take heed. “After decades of relatively slow change, an at-scale shift to modularization — alongside digitization — looks likely to disrupt the construction industry and broader ecosystem. All players should evaluate the trend and impact, and assess their strategic choices, to ensure they can benefit rather than risking being left behind.”

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