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Component Manufacturing dverti$ dverti $ er
Don’t Forget! You Saw it in the
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August 2022 #14277 Page #82
8 Reasons Building Materials Companies Need to Pay Attention to Offsite Construction By Mark Mitchell Whizard Strategy
s offsite construction just a fad or is it going to become the new normal for the construction industry? Is it an untapped market for manufacturers and suppliers? If your business is selling building materials, does it even matter whether you sell to offsite facilities or companies that exclusively build onsite?
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You can probably guess my answers based on the title of this post. Offsite construction is growing rapidly in both the residential and commercial markets. If you don’t adjust your strategy accordingly, you will find yourself playing catch up as the market shifts.
Offsite Construction Is Growing There are two types of offsite construction: panelized and modular. With modular, large components of the building are put together offsite. Often, these are entire rooms with floor, ceiling, walls and many of the interior features already completed by the time the module is transported to the site. Panelized is more of a hybrid approach. Some components of the building are built offsite, like walls and flooring. However, most of the assembly and finishing work still takes place on the jobsite. For the purposes of this post, I’m going to ignore those details. There are important differences between panelized and modular construction, but both involve offsite construction, both are growing and both are becoming impossible to ignore. In the commercial market, panelized and modular construction accounted for $8 billion of the $182 billion spent on non-residential construction in 2018, representing a 4.4% share of the total non-residential construction market. According to the National Association of Home Builders, the share of modular homes in the total single-family home market grew from 2.3% in 2017 to 3.4% in 2018, representing a growth rate of 47%. And there’s every reason to think this is only the beginning, especially in North America. Here are eight reasons I’m confident offsite construction will keep taking a bigger share of the market and why you should be paying more attention to it.
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