Okay, we’ve probably all heard about the growth of modular construction in recent years. Fact is, the modular construction industry reached $95 billion worldwide in 2023 and is anticipated to expand to $131 billion by 2030. This demonstrates the increased demand for modular buildings by customers along with a boost in modular enterprises to keep up with this growing demand. True, the majority of modular construction remains in the home building industry, however, many industry observers agree that the future of commercial building, including apartments and office buildings, will also rely more on modular construction.
In spite of this, however, the modular option isn’t ideal for every construction project. We need to discover why more people are deciding on modular construction along with both the benefits and drawbacks that come with it.
To get us all on the same page, we feel it’s rather important to think of an answer to the question, “What is modular construction as compared to stick-built construction?”
Stick-built is the traditional method when plant components are built and assembled on-site, providing design flexibility but often involving more time and resources. Each level of the structure is built in sequence, with certain equipment installed at each level before moving to the next.
On the other hand, modular construction encompasses building parts or complete structures in a controlled fabrication plant separate from the construction site. The structure is divided into sections, each assembled separately and pre-fitted with all necessary pipes and any custom equipment.
Finished modules are then transported to and assembled on the construction site to fit with one another, with the same design target and architectural specs of the most advanced site-built facility. The modular construction method also employs the same building codes, raw materials and standards relevant for traditionally built projects.
Modular construction may very well give the impression of a contemporary innovation, but the technique was actually first used during the United States expansion into the West, most especially during the California Gold Rush. It consisted of transporting prefabricated houses from the East Coast to mushrooming communities in the West and it continued into the early twentieth century, particularly after World War II, as an answer to housing shortages.
So, why the recent revival of modular construction? As mentioned, it appears that the distinct opportunities of modular construction had been mostly untapped until the resurgence of modular apartment buildings, modular construction hotels, modular classrooms and modular office buildings.
Before discussing the pros and cons of modular construction, we need to make one more distinction. Most of us have witnessed or at least heard about prefabricated construction, which leads to the question, is it the same as modular construction?
Prefabricated construction is a broader term that encompasses modular construction. A modular building is a prefabricated building in which prefabricated components are assembled offsite in a factory or prefab yard and later transported to the construction site completed or nearly completed.
Interestingly, not all prefabricated buildings are modular buildings since prefab includes pre-made individual pieces or parts of an overall structure. In contrast, modular buildings are made from separate box-like modules secured together on site.
In recent years, prefabricated construction has gained a bunch of attention as a cost-effective and eco-friendly manner of construction. Prefabrication involves creating prefabricated panels and modules in a factory, away from the construction site. Got that? Obviously, the two terms are interchanged at times.
Okay, what then are the benefits of modular construction?
Put simply, It’s fast!
Since most of the actual fabrication occurs off site, modular construction is quite a bit faster than a traditional build. Construction of the modules can take place concurrently to any on-site building, which substantially cuts down on build times. The factory setting and standardization of the construction also means contractors can take full advantage of automation to considerably accelerate build time and avoid weather delays or on-site changes that usually slow down the project.
According to a McGraw-Hill survey, modular construction cut down build times for 66 percent of building professionals, with almost 35 percent reporting that they had saved more than a month on a single project.
Minimal risk of weather delay
By fabricating the module within a controlled environment, concerns about weather postponing construction of the modular units are practically eliminated. It also offers workers safer and more comfortable conditions so they can be more productive and create a higher quality product. Also, the modules arrive on site normally equipped with items such as flooring, cabinets, counters, plumbing and electrical fixtures, plus appliances, thus requiring minimal time and effort to be prepared for use.
Labor benefits
For companies opting between stick-built or modular construction, choosing modular construction where labor is readily available can significantly benefit the project. Some specific paybacks include:
- Tackling capacity limits: Modular construction lessens the requirement for on-site labor, helping to manage local labor shortages.
- Boosting skill levels: Workers in a fabrication setting can hone their abilities in a controlled environment, resulting in better quality results.
- Boosting worker productivity: Employing workers who are accustomed to the surroundings, the fabrication site’s safety rules and protocols, in addition to the necessary permits and licenses required to perform specific tasks, can improve productivity.
- Boosting safety: The controlled and expected environment of a fabrication site lessens the potential for accidents when compared to variable and sometimes risky traditional construction sites.
Less waste and little space
A recent industry study indicates that modular construction can cut on-site material waste by up to 90 percent when compared with traditional construction methods. With the ever-growing concerns for the environment, modular construction is turning into an accepted alternative to cut back on the waste generated on each project.
Modular construction also helps maintain the site’s cleanliness and safety while offering crews more space to perform their jobs. Clearly, with building components located off site, there’s less clutter and worry about theft, especially in compact urban settings such as Pittsburgh.
Safer job sites
Modular projects are also safer since most of the employees fabricating the buildings are working in a secure factory setting until the parts are delivered to the job site where they’re assembled. This helps managers to further mitigate risk and create safe working conditions.
No need to store materials
An added advantage of modular construction includes storage of materials. When a site is stretched for space, for example in a compact urban setting like Pittsburgh, staging and relocating materials around can be tough. This often results in clutter, slows down work and produces theft anxieties. By fabricating the modules in a factory, construction sites remain cleaner and safer and offer more space to work and move about without restrictions.
As might be expected with any construction process, modular construction also contains a number of disadvantages.
Transportation costs & risks
Seeing as modules are prefabricated in a factory sometimes miles from the job site, they must be transported either straight to the jobsite or staged in a spot nearby and then set in place. The haulers and the riggers must be particularly cautious with every module as a single mishap during transportation and the complete module may well require substantial repairs or even total replacement. This could possibly postpone an entire sequence of installation.
That’s why it’s important for both the transportation and rigging companies to devote significant effort in plotting the logistics of transporting the modules all the way through the entire journey. Necessarily, they can’t be hung up by bridges, tight turns, traffic issues, crane setup and short-term road closure authorizations. Moreover, module sizes are frequently restricted by permissible size on the road and capacity of the existing crane.
Lack of variety
One of the major criticisms of modular design is that it’s dull. You are building a structure that comes across as nearly identical countless other construction projects as it was designed the same way. Modular companies frequently design a couple of models and construct identical designs for every client. This might not be the best choice if you have certain requirements for your building or are looking for a design style that stands out from the crowd.
Front-loaded design
While the modular design company can manage the building construction itself, the owner must still work with a variety of industry professionals to prepare the site for the building. The process entails architects, engineers and contractors making critical upfront determinations dealing with design and procurement. For instance, this front-loaded design course obliges buyers and owners alike to make final selections on issues including finishes and appliances so they can be purchased well in advance of any onsite work. There is a caveat here: Those of you that are acquainted with the construction business could view this as a benefit. You’re well aware that changes made late in the process can be a major headache.
Quality control
Similar to any construction project, quality control is crucial to making sure of both worker and customer safety. While the quick pace of modular projects is huge when it comes to ROI, automation and quick builds can heighten the threat of construction defects that affect the quality and safety of the building. Contractors and manufacturers that take part in the work need to possess a strong quality assurance program to guarantee the quality of the process and discover potential safety concerns for every component before it’s delivered to the site.
Sometimes difficult financing process
Another challenge involves financing. Since modular construction often involves purchasing and making things on a quicker timeline, the invoices are typically a bit larger earlier in the construction period than investors and lenders might be accustomed to seeing and paying. Owners have to take the necessary time to work with the manufacturer and contractor to appreciate the amounts and timing of probable funding and update it as the project moves forward.
Sometimes difficult approval process
Finally, it can be difficult to steer through the approval and inspection procedures obliged by the state or county when you opt for a modular building. Some regions even have step-by-step prerequisites for inspections, which means you have to gain approval that one part is finished before proceeding on to the next one. With a modular building, all parts are delivered at once, with each element complete. See the potential problem?
Will modular construction continue to grow?
In spite of the would-be drawbacks just listed above, the modular construction industry will keep expanding in the coming years. Innovative companies are already working to surmount the concerns that customers have by delivering better design options and safer transportation practices. Furthermore, several macroeconomic trends will drive modular demand. Here are a couple of these trends:
- Labor shortage: The construction industry will need to attract a large number of workers to keep abreast of the demand. Modular factories provide steady jobs, indoor working conditions and the capacity for employees to specialize.
- Improvements in technology: Companies continue to search for technological innovations to resolve building issues, with the use, for example, of recycled material to 3D planning. This points to how the future of construction includes modular.
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Obviously, modular design won’t replace every building construction project in the future, but it will provide a safe, low-risk solution for both business owners and homeowners. For many, the potential benefits outweigh any risks that come with choosing the modular route.
