Less than 4 percent of current US housing stock was built using modular techniques, compared to 15 percent of homes in Japan, and 45 percent in Finland, Norway, and Sweden. Moreover, modular projects may be easier to execute on urban job sites since they require less space for the storage and preparation of materials.ĭespite these apparent benefits, the approach has struggled to gain acceptance in North America. McKinsey analysis suggests that modular techniques could allow home builders to accelerate end-to-end project timelines by 20 to 50 percent while reducing costs by up to 20 percent. Fitting modules together on site is quicker and requires less labor than traditional construction methods. Industrialized production methods allow companies to optimize material utilization, reducing waste. Manufacturing building components in factories and assembling them on site offers solutions to many of the construction industry’s challenges, which include high material prices, disrupted supply chains, and shortages of skilled labor. The case for modular construction in the US is clear.
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