Modular Building Benefits and Opportunities
From the Modular Building Institute: “FMI Corporation (one of the nation’s largest providers of management consulting, investment banking and reserach to the engineering and construction industry) recently released their fourth quarter 2010 Nonresidential Construction Index (NRCI) stating that modular construction is considered a growth opportunity for the industry.
The NRCI report indicates that in light of the long recession, more contractors are thinking lean and looking for ways to build for less. FMI asked about one trend that could help make the construction business leaner and more efficient, the growth of prefabrication and modular construction. Although the trend for greater use of off-site construction has been growing slowly for years, the recession and new technologies are set to increase the use of manufacturing processes and environments for construction.
Only 11% of the panelists surveyed expected growth for the next three years to be less than 1%, or less than expected GDP growth. Thirty-seven percent expect growth to be between 1% and 5%, but 49% expect growth to exceed 5%. Panelists expect this area to grow faster than the market in general due to the growing use of BIM, owners wanting projects faster and for lower cost, safety, quality and the shortage of skilled labor once markets return to more normal growth.
“This report confirms what we’ve believed for a long time, that modular construction is poised for take-off,” said Tom Hardiman, Executive Director of the Modular Building Institute. “Over the past five years there has been a growing interest in the commercial modular construction market from building owners and investors alike. We expect to see continued growth for our commercial building providers as the modular construction industry continues to adopt innovative and efficient construction techniques.”
The NRCI is a quarterly report by FMI which is a sampling of construction industry executives voluntarily serving as panelists for surveys about industry trends. The responses are based on their experience and opinions, and the analysis is based on FMI’s interpretation of the aggregate results.”