Modular construction can deliver projects 20% to 50% faster than traditional methods and drastically reshape how buildings are delivered, according to a new report from McKinsey & Co.
Modular carries a potential cost savings of up to 20%, but there is a risk of up to a 10% loss if delivery or material costs spike, the report says. The global market is primed for the sweeping change that factory-built construction offers.
To realize all of modular’s benefits, the building team must choose the right design and right materials as well as overcome challenges in design, manufacturing, technology, logistics and assembly; and take advantage of locations where they can achieve scale and repetition. Public sector owners and regulatory agencies are well positioned to drive the industry toward modular.
Up to now, prefab home building has achieved a sustainable foothold in only a few places, including Japan and Scandinavia, the report adds. That may change as labor shortages become more acute and the industry adopts new, lighter-weight materials and digital technologies that enhance design capabilities and variability, improve precision and productivity in manufacturing, and facilitate logistics for the construction of prefab homes.
Related Stories
| Dec 18, 2019
Reconsidering construction robotics
After decades when experts predicted that robots would become more prevalent on construction sites, it would appear that the industry has finally reached that point where necessity, aspiration, and investment are colliding.
75 Top Building Products | Dec 16, 2019
Top Building Systems Products for 2019
FabricAir’s ceiling-hung fabric duct and Ellumi Lighting’s bacteria-killing lights are among the 13 new building systems products to make Building Design+Construction's 2019 101 Top Products report.
75 Top Building Products | Dec 12, 2019
Top Building Envelope Products for 2019
Sto's beetle-inspired exterior coating and Dörken Systems' UV-resistant vapor-permeable barrier are among the 28 new building envelope products to make Building Design+Construction's 2019 101 Top Products report.
Building Tech | Nov 8, 2019
Pittsburgh is developing a one-stop-shop campus for additive manufacturing and 3D printing
Neighborhood 91 is the latest tech venture for the city’s airport authority.
Multifamily Housing | Sep 12, 2019
Meet the masters of offsite construction
Prescient combines 5D software, clever engineering, and advanced robotics to create prefabricated assemblies for apartment buildings and student housing.
Codes and Standards | Sep 9, 2019
Free app calculates maximum allowable heights and areas for buildings
A free app that calculates the maximum allowable heights and areas for buildings of various occupancy classifications and types of construction has been released.
AEC Innovators | Aug 15, 2019
Oracle’s replica of a construction jobsite creates an immersive environment for AEC professionals
The Oracle Construction and Engineering Innovation Lab allows visitors to walk through five different stages of construction work, to test new AEC technologies and training techniques.
Building Tech | Jul 24, 2019
Building façade innovation: Water won’t dissolve this sugar cube
10 Jay Street’s unitized “sugar crystal” façade was engineered to withstand the water and wind from New York’s East River.
Multifamily Housing | Jul 23, 2019
Is prefab in your future?
The most important benefit of offsite construction, when done right, is reliability.
Building Tech | Apr 19, 2019
Skender, Z Modular reach agreement to fabricate multifamily housing components
Factory to open soon on the southwest side of Chicago.
