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Modular construction is a process of creating buildings in an offsite using the same ......
According to Forbes, during 2017-2018 only 7.5% of the homes built in the US used modular construction, and although this number has grown year on year...
buildrs (all lower case, same font as the text following it, bold, cobalt blue) CEO and co-Founder, David Bess......
New York, June 15, 2021 (GLOBE NEWSWIRE) -- Modular construction is a process of creating buildings in an offsite using the same materials while adhering to building codes to regulations. This can be used in expediting the process and producing building in modules in a sustainable manner. Development of high-rise buildings in urban areas to host company headquarters or residential quarters is likely to induce the need for modular construction. The global modular construction in high-rise buildings market is expected to exhibit 5.60% CAGR over the forecast period (2020-2027), according to the latest projections by Market Research Future (MRFR). Rise of sustainable buildings can create a new opportunity for the market in the coming years.
Having recently completed work on an affordable modular family homes scheme alongside Great Places Housing Group, Sutcliffe has long been advocates of prefab work, with Sean Keyes stating that the recent evolution of modular construction has been a real positive for the industry.
The global modular construction in high-rise buildings market is set to gain huge demand in the coming years owing to heavy inflow of foreign direct investments. Creation of special zones by governments for inviting multinational companies and propel economic growth can bode well for the market. According to the United States Economic and Social Commission for Asia and Pacific (UNESCAP), the surge in FDI is expected to push the demand for modular construction projects. Development of urban areas and need for housing can facilitate market growth. Shortage of skilled personnel is expected to drive the demand for modular construction. The Soho Tower in Darwin, Australia, was constructed in this manner consisting of 21 levels of apartments. Lateral stability of these buildings with the help of a precast concrete basement can contain many plumbing fitments. Moreover, the recognition of sustainable construction methods can favor the market growth in the coming years. High rate of flexibility and low waste volume of materials can lead to many governments adopting the method to create housing units. Moreover, the construction of components in a controlled environment can ensure the quality of buildings in the long run.
The COVID-19 outbreak had been lucrative for the market owing to rapid construction of vaccination zones and hospitals. China, in particular, has been leading in the market by construction hospitals in a speedy process for taking in serious patients and alleviating the burden on the healthcare sector. Moreover, building information modeling has been helpful in assisting with the design and other specification required for builders to complete projects on time. Improvements in BIM can be used in modification of manufactured modules and merge spatial. Permanent modular buildings are expected to experience a heavy push owing to its use in fabrication of single-storey and multi-storey buildings. Use of cranes, jigs, and other tools for stacking the modules and setting the base of buildings can be beneficial in the long run.
Construction of buildings with low spending levels can push the demand for modular construction. Hotel rooms can be stacked on-site to create projects faster. Sustainable development vouched by governments can be achieved through zero net energy buildings. Low emission of carbon dioxide levels and conservation of energy can lead to investments from venture capital firms. Pre-constructed components can reduce the logistics costs and be completed on the site. Sustainable living has propelled the development of zero net energy buildings with large companies investing in familiar neighborhoods. Recently, Sustainable Living Innovations is a recently constructed building using prefabricated components. The building will run on solar power and batteries and comes preloaded with plumbing, electrical wiring, and mechanical equipment.
According to Forbes, during 2017-2018 only 7.5% of the homes built in the UK used modular construction, and although this number has grown year on year, this is still a long way short of market leader Sweden’s mammoth 45%. Sean Keyes, managing director a Sutcliffe explores further
With saving time, saving money and providing a quality product top of the government’s home building agenda, there is now a big push to emulate Scandanvia’s forward-thinking modular approach, in order to solve the housing crisis that we currently find ourselves in.
Housing and regeneration aficionado Mike De’Ath alongside the government’s modern methods of construction champion Mark Farmer is constantly beating the drum for modular housing, with both believing that an additional 75,000 homes per year could be coming to our shores by 2030, in the process creating thousands of new jobs and boosting the economy which has been dented during the last 18 months thanks in no small part to the pandemic.
With more bespoke modular factories being built in the UK, the approximate figure of 15,000 modular houses built per year will continue to rise, and with civil and structural engineering firm Sutcliffe playing their own part in the ‘modular revolution’, managing director Sean Keyes believes that the construction sector is in the perfect position to fly the flag for prefabricated buildings in the North West and beyond.
Having recently completed work on an affordable modular family homes scheme alongside Great Places Housing Group, Sutcliffe has long been advocates of prefab work, with Sean Keyes stating that the recent evolution of modular construction has been a real positive for the industry.
Prefabricated methods of construction have been around for over 12,000 years, with the Egyptians using forms of semi-modular construction when building the pyramids. In today’s society, modular construction revolves around buildings that are built in a factory and brought to site. The advantages of this are usually that the quality of the product is higher and the time on site is shorter, meaning that the quality control can be at a high standard. Producing modular housing reduces carbon emissions, as well as bringing financial gains in terms of reducing construction costs, which has enabled big developers to take on more developments and build more properties across the country; the aforementioned Shorrock Lane scheme has come from a £3m investment from the Great Places Housing Group and I have no doubt that they’ll be working on plenty more similar schemes in the future. The government’s 2017 budget announcement saw 300,000 new houses a year promised and this was well-received across the industry, however, this has yet to materialise with the latest figure of 247,000 built-in 2019 falling 53,000 short of the target.
Modular homes built in mass are certainly seen as the way to bridge the gap towards reaching number 10’s lofty target and despite many still favouring the more traditional forms of construction, Sean continued by stating that: “Modern methods of construction are here to stay, especially as the government leans on companies such as Sutcliffe to reboot the economy post-Covid. “There are some projects that need to be completed in a speedy and efficient manner and that is where mass-produced housing really comes into its own. My main prediction for 2022 and beyond is that larger elements of modular construction will be intertwined with the more traditional methods of building, enabling developers to bring elements to site in a ‘plug and play’ type scenario.” Joseph Daniels, founder and CEO of Project Etopia hit the headlines at the Offsite Manufacture Conference in 2019 when he stated that start-up modular manufacturers are finding it much easier to find opportunities abroad compared to the UK, with China and India, in particular, boasting some of the largest modular factories in the world.
One of the biggest disadvantages of modular housing is the inability to oversee production from the UK when thousands of homes are being pre-made thousands of miles away. Chair of ACE North West and a true supporter of creating opportunities for local people through apprenticeship schemes, Sean is hopeful that the minor issues from modular housing can be ironed out, in the process attracting a new raft of professionals to the industry. My dream would be to see more modular factories built in the UK to boost our economy and more high-skilled jobs created. The construction industry needs to be building quality homes at an affordable price and there is no doubt that we are on the right track to doing just that, and this will continue to accelerate if we invest in new technologies including modular. Working on one of Liverpool’s first ever McDonalds restaurants, which in fact was a modular construction development, Sutcliffe as a company predicts that modular homes will cover approximately 10% of the market in a decades time, and with plenty in the pipeline moving forward for prefab sites, Sean has spoken of his desire to work on more projects similar to McDonalds on Prescot Road and Shorrock Lane in the future. We are very much a market driven entity and as the industry changes and more modular houses are made, we will happily follow that trend and provide our services on many more sites. There are certain types of projects that need to be completed at speed and we have a proud track record for doing just that…with McDonalds built in a week. Modular housing is a growing part of the construction industry in the UK and I look forward to seeing the 300,000 new homes a year figure surpassed in the not so distant future with the help of prefab, with Sutcliffe as a company playing their own small part in this.
While still only a small part of the development industry, modular construction has gained renewed attention in the U.S. and abroad for its objective to lower costs, accelerate project timelines, improve quality and reduce waste. In markets where labor and housing are in short supply, modular construction is a strategic priority to build all types of housing that is affordable at all income levels.
However, we have observed that adopting a modular mindset has proven difficult for many in the development space, where the primary approach hasn’t changed all that much in the past 100 years. Add to this a few spectacular missteps, exemplified by the shutdown of one-time industry darling Katerra, and it’s easy to see how misconceptions about modular construction keep it from reaching the mainstream.
Still, it’s hard to argue that modular won’t become a significant player in the development of multifamily housing and other properties in the near future. A McKinsey & Company report suggests the market for modular could reach $130 billion, or about 14 percent of all construction, in the U.S. and Europe by 2030, assuming a moderate rate of growth. Emerging technologies and a newfound desire in the wake of COVID-19 to lean into disruption could push that number even higher
Developers and investors need to understand the full picture of what it means to build modular—moving from what McKinsey calls a “project” mindset to a “product” approach—in order to put the power of modular into action and meet the growing housing need in the U.S. and beyond. Here are a few of the considerations our team advises across modular projects in all sectors.
Modular construction does not happen along the same timelines as traditional design-bid-build or even design-build approaches. It’s easy to get caught up in the benefits—reducing project timelines by as much as 50 percent, according to McKinsey—and overlook the changes that are required to make modular successful.
These include a design discipline to ensure the manufacturing process starts early to deliver successful modular components. Modular may also reduce the number of different unit types that can exist within a multifamily development, limiting customization at the unit level, though not necessarily for the development as a whole. Finally, modular construction requires more upfront costs and cash flow than traditional builds, a reality that is offset by the savings created through economies of scale and quicker speed to market. Even where savings aren’t immediately realized, the speed to market is often a critical factor for developers, outweighing other potential downsides. Your team needs to understand the risks and rewards at every stage and manage the project accordingly.
Modular construction is not the focus of the International Building Code, the guide that is adopted and amended by municipalities to create their own unique building guidelines, standards and regulations. Rather than assuming issues left unaddressed by the code get an automatic exemption, it would be wise to prepare for greater scrutiny and time spent working through design details. While modular industry advocacy groups have stepped up to address the challenges of requiring modular developments to adhere to traditionally constructed spaces, there is still a lot of variety at the state, county and municipal level and many instances of regulations being decided on the fly. Questions related to plant process inspections, off-site quality control, approval of building plans, and inspections of off-site construction are just a few of the items that must be resolved if a project is to move forward. Some municipalities may not be willing to roll the dice on a major modular project, limiting building heights, for instance, to keep projects within their reference framework. Understanding the local perspective can help avoid costly delays or set backs throughout the project.
While incorporating new and emerging technology into the existing construction process is important to saving time and money—and making construction safer and more sustainable overall—it’s only one piece of a complex puzzle. Technology will create efficiencies by enhancing design and logistics, but there is always a human element to development—particularly in the multifamily space, where people live their lives in the homes that we build. Regardless of the income level of the future tenants of a modular multifamily project, providing high-quality and dignified housing should be a priority supported by this innovative approach. Putting people first in all aspects of development will help ease any concerns related to modular development.
