Prefabrication and Modular Construction 2020

SmartMarket Report

Prefabrication and Modular Construction 2020

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Dodge Data & Analytics Prefabrication and Modular Construction 2020 Chief Executive Officer SmartMarket Report Neal G. Bibeau Executive Editor About Dodge Data & Dodge Data & Analytics Stephen A. Jones Research & Analytics/ Analytics Industry Insights Managing Editor Dodge Data & Analytics is North Donna Laquidara-Carr, Ph.D., LEED AP America’s leading provider of Senior Vice President Custom Solutions Director, Marketing & analytics and software-based Communications Tim Waal workflow integration solutions for the Jennifer Shelgren construction industry. Building product Senior Director, Innovation & Product Management Design & Production manufacturers, architects, engineers, Dave DiNitto Erbach Communications Group contractors, and service providers leverage Dodge to identify and pursue Senior Director, Industry Contributors Insights Research Bruce Buckley unseen growth opportunities and Stephen A. Jones Katharine Logan execute on those opportunities for Timothy Schuler enhanced business performance. Director, Industry Insights Research Donna Laquidara-Carr, Ph.D., LEED AP Research Project Manager Whether it’s on a local, regional or Susan Barnett, MRA, PRC national level, Dodge makes the hidden obvious, empowering its Reproduction or dissemination Media Contact clients to better understand their of any information contained Nicole Sullivan markets, uncover key relationships, herein is granted only by contract AFFECT Public Relations size growth opportunities, and pursue or prior written permission from & Social Media 212-398-9680 those opportunities with success. Dodge Data & Analytics. [email protected] The company’s construction project information is the most comprehensive Copyright © 2020, and verified in the industry. Dodge Dodge Data & Analytics, For further information on this is leveraging its 100-year-old legacy ALL RIGHTS RESERVED SmartMarket Report or for any of continuous innovation to help the in the series, please contact: industry meet the building challenges Dodge Data & Analytics of the future. Research & Analytics 34 Crosby Drive, Suite 201 Bedford, MA 01730 To learn more, visit www.construction.com 1-800-591-4462 www.construction.com/ toolkit/reports SmartMarket Report

Introduction

refabrication and modular applied on projects, respondents to the construction are both experiencing survey were routed into separate lines a significant expansion of interest of inquiry about either prefabrication and use as the construction industry or modular construction based on their Pseeks to improve safety, productivity, quality, experience level, and this report presents the cost, schedule and sustainability performance resulting data in two separate sections. while continuing to face workforce shortages, Key findings reveal both commonalities cost uncertainties and other challenges. While and contrasts between the two approaches. Stephen A. Jones major advances have been made in both For example, over three quarters of current Senior Director prefabrication and modular construction users of each are receiving a significant level Industry Insights Research Dodge Data & Analytics since Dodge Data & Analytics published its (medium, high or very high) of these seven first SmartMarket Report on these topics valuable benefits from their use: Stephen A. Jones leads in 2011, many of the underlying drivers ■ Improved Cost Predictability DD&A’s Industry Insights Research division. He ■ and benefits of these approaches remain Improved Productivity is active in numerous powerfully consistent in this new research ■ Improved Quality industry organizations study. Then, as now: ■ Improved Safety Performance and frequently speaks at industry events around ■ Improved productivity and quality are top ■ Increased Client Satisfaction the world. Before DD&A, benefits driving usage. ■ Increased Schedule Certainty Jones was vice president

PREFABRICATION AND MODULAR CONSTRUCTION 2020 MODULAR CONSTRUCTION AND PREFABRICATION ■ Positive impacts on budget and schedule ■ Reduced Waste Generated with Primavera Systems performance are widely experienced. by Construction (now part of Oracle), a global leader in project ■ Construction sites are greener due to less But interestingly, the percentages are higher management software. waste being generated, and safer due to Prior to that, he was among the users of modular construction for working with assemblies and modules principal and a Board of each of these benefits than from the group Directors member with produced offsite. responding about their use of prefabrication. Burt Hill, a major A/E firm While practitioners in both studies forecast This study also examines the positive (now merged with Stantec). ambitious plans to increase the amount of impact of BIM on the achievement of benefits prefabrication and modular construction related to these approaches. they will do over the next few years, the top ■ Less than a quarter (22%) of respondents obstacles they cite to achieving those goals who report using no BIM claim that are also familiar: they experience schedule performance ■ Contractors continue to say that architects improvement from the use of and engineers are not adequately prefabrication, whereas among the enabling prefabrication and/or modular companies that use BIM on half or more of construction in their design solutions. their projects a significant majority (61%) ■ Meanwhile design professionals point to cite improved schedule performance. Donna Laquidara-Carr, a shortage of prefabrication facilities close ■ Similarly, with modular construction, Ph.D., LEED AP to their project sites and to owners’ lack only 21% of non-BIM users report cost Industry Insights of understanding of the value of modular performance improvement compared with Research Director construction as the main reasons they do 46% of those using BIM frequently. Dodge Data & Analytics not design in these approaches from the Clearly the future is bright for continued Donna Laquidara-Carr beginning of a project. currently provides growth in use of both prefabrication and editorial direction, To help address this, one of the main modular construction, and this report analysis and content objectives of Dodge’s new study is to will serve as a benchmark of our recent to DD&A’s SmartMarket provide all industry participants with progress and a baseline against which to Reports. Prior to this position, she worked for more quantification of the benefits of track exciting future expansion. Dodge nearly 20 years with DD&A’s prefabrication and modular construction, wishes to thank Bradley Corporation, the Dodge division, where she especially the latter, which has experienced Modular Building Institute, Pinnacle Infotech, gained detailed insight into the construction industry. dramatic growth since the previous study. the Mechanical Contractors Association Because of the differences in how, when, of America and Skender for supporting where and why each approach is being this research.

Dodge Data & Analytics 1 www.construction.com SmartMarket Report SmartMarket Report PREFABRICATION AND MODULAR CONSTRUCTION 2020 TABLE OF CONTENTS 4 Executive Summary

7 Data

7 Introduction

8 Prefabrication Trends 8 Most Frequent Building Types for Use of Prefabrication 11 Most Frequently Prefabricated Assemblies 15 Impact of Prefabrication on Schedule and Cost Performance 16 Impact of Prefabrication on Seven Specific Benefits 19 Impact of Project Delivery Method on Prefabrication 20 Prefabrication Suppliers and Procurement 22 Use of BIM for Model-Driven Prefabrication 24 Top Factors That Influenced Use of Prefabrication (Last Three Years) 25 Top Positive Impacts That Will Drive More Prefabrication in the Next Three Years 26 Top Obstacles Inhibiting More Use of Prefabrication 27 sidebar Prefabricated and Modular Multifamily

28 Modular Construction Trends 28 sidebar Define Disruption 30 sidebar Hares and Tortoises: A Global Perspective on Modular Construction 32 Use of Specific Types of Modular Construction 35 Most Frequent Building Types for Use of Permanent Modular Construction 38 Impact of Modular Construction on Schedule and Cost Performance 39 Impact of Modular Construction on Seven Specific Benefits 42 Impact of Project Delivery Models on Modular Construction 43 Selection of Modular Construction Suppliers 44 BIM-Driven Modular Construction 46 Top Factors That Influenced Use of Permanent Modular Construction (Last Three Years) 47 Top Positive Impacts That Will Drive More Permanent Modular Construction (Next Three Years) 48 Top Obstacles Inhibiting More Use of Permanent Modular Construction

50 Perspectives of Modular Builders/Manufacturers 50 Differences Between Modular Specialists and Other Respondents 51 Benefits of Modular Construction

62 Owner Perspectives 62 Owner Perspectives on Using Prefabrication and Modular Construction Cover Image Courtesy of Skender; Adjacent Page: Image courtesy of Pyatok Architects

SmartMarket Report Dodge Data & Analytics 2 www.construction.com CONTENTS

65 64 Stacy Scopano, Chief Technology Officer, Skender Officer, Technology Chief Scopano, Stacy 49

60 54 58 56 52

The Union Flats Housing Development, Union City, California City, Union Development, Housing Flats Union The Advocate Aurora Health, Illinois and Wisconsin and Illinois Health, Aurora Advocate Systemic Modularization Systemic Risks Shortage Labor Skilled Mitigate to Prefabrication Using Resources Methodology Interview Thought Leader Studies Case University of Delaware’s Science Technology and Advanced Research Campus, Newark, Delaware Newark, Campus, Research Advanced and Technology Science Delaware’s of University A High-Rise Stylish Modular Hotel Rises in NYC in Rises Hotel Modular Stylish A High-Rise Time First the Right It Doing Line Bottom Triple Sustainability’s and Construction Modular Coliseum Connections, Oakland, California Oakland, Connections, Coliseum citizenM Bowery, New York, New York York, New New Bowery, citizenM

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housing development in Oakland, Calif. developmenthousing Oakland, in 110-unit a modular Connections, Coliseum At Right:

SmartMarket Report SmartMarket Executive Summary

Design firms and contractors agree that both prefabrication and modular construction are providing significant improvements to cost, schedule, quality and safety performance, productivity, client satisfaction and their ability to reduce waste. These companies are forecasting expanded use of both approaches over the coming years as the benefits are more widely measured, owners become increasingly comfortable with the process and the outcomes, and the industry develops more resources to support innovative applications.

Benefits of Using Prefabrication and Impact of BIM on Budget and Modular Construction Schedule Performance When Users report receiving many important benefits from Using Prefabrication or Modular both prefabrication and from modular construction. The Construction chart below shows the percentages reporting significant Modeling technologies are impacting all aspects of the (medium, high or very high level) positive impacts from design and construction industry. This study reveals a the use of each on seven key metrics. strong correlation between companies’ BIM use and the degree to which they enjoy improved schedule Benefits From the Use of Prefabrication and and budget performance from using prefabrication or Modular Construction (Percentage of Users modular construction. The findings are similar for both Citing Medium, High or Very High Levels) users of prefabrication and of modular construction, so PREFABRICATION AND MODULAR CONSTRUCTION 2020 MODULAR CONSTRUCTION AND PREFABRICATION Dodge Data & Analytics, 2020 percentages in the chart below reflect their combined Prefabrication reporting of positive impacts, differentiated by their level Modular Construction of BIM implementation.

Improved Productivity Impact of BIM on Schedule and Budget Performance When Using Prefabrication or 89% Modular Construction (Percentage of Companies 93% by BIM Usage Reporting Improved Performance) Improved Quality Dodge Data & Analytics, 2020 90% Improved Schedule Performance 90% Improved Budget Performance Increased Schedule Certainty 60% 87% 48% 50% 90% 47%

Improved Cost Predictability 30% 81% 28% 88%

Reduced Waste Generated by Construction 81% 86% Companies Not Companies Companies Using BIM Using BIM on Using BIM on Increased Client Satisfaction Less Than 50% 50% or More of of Their Projects Their Projects 80%

86%

Improved Safety Performance 79% 83%

SmartMarket Report Dodge Data & Analytics 4 www.construction.com

p1 Sched Budg BIM

p1 Benes PREFABRICATION AND MODULAR CONSTRUCTION 2020 p2 BldT each.) for forecast specific the on detail more for report this of Trends sections Construction Modular the Trends and Prefabrication the (See each. for forecasts their combining index an on based is below chart summary The types. building major many on years three next the over construction modular of and prefabrication of frequency a high predict participants Survey YearsThree the Next in Construction Modular and ofFrequent Use Prefabrication With Most Types Forecast for Building Summary Executive Forecasts for the Next 3Years) Next the for Forecasts Construction Modular and/or Prefabrication of Frequency Types High for Building Likely Most Healthcare Facilities D Of ces Low-Rise(1–4Stories) College BuildingsandDormitories Multifamily Hotels andMotels Public Buildings Schools K–12 Manufacturing Buildings Commercial Warehouses Of ces High-Rise(5+Stories) Retail StoresandShoppingCenters odge Data&Analytics,2020 ypes (Index Based on Respondent Respondent on Based (Index 37 44

49 50 51 CONTINUED 57 58 Dod ge Data & Analytics Data ge 70 71 74 82

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Forecasting That Level of Use in the Next 3 Years) Next in the Use of Level That Forecasting 3Years and Past the Over 10% Projects of Least at on Use Reporting 3Years (Percentages Next the in Construction Modular Permanent of and Prefabrication of Use Increased for Forecast three years. three next the over engagement increased forecast users Current Years the Next Three in Construction Prefabrication and Permanent Modular of Use Forecast for Increased PREF PERMANENT MODULARCONSTRUCTION p2 IncrUse D Years Past 3 Years Past 3 odge Data Single-Trade Assemblies www.construction.com 62% 17% 31% Panelized Construction 48% 37% 10% to50%ofProjects More Than50%ofProjects 25% ABRICATION (e.g., Wall Panels) Prefabricated & Analytics, 2020 Years Next 3 Years Next 3 33% 75% 38% 21% 59% 42%

Years Past 3 Years Past 3 Volumetric Construction Multi-Trade Assemblies 17% 44% 33% 27% 22% 11% 3D Modules/Full Prefabricated SmartMarket Report SmartMarket Years Next 3 Years Next 3 18% 40% 21% 61% 58% 40% PREFABRICATION AND MODULAR CONSTRUCTION 2020 p3 FutDrvrs 3Years) Next for Forecasts Respondent on 3Years Based (Index Next the in Construction Modular or Prefabrication of Use Increased BenefitsThat WouldMost Encourage each. for findings the combines that index an on based approaches, both with engagement deeper spur to impactful most be will that reasons five top the shows below chart The years. three next the over construction and of modular of prefabrication implementation their increase to them drive would that improvements process or benefits compelling most the identify to contractors and firms design probed survey The Modular Construction and of Use Future Prefabrication Most Important Drivers for Increased Summary Executive SmartMarket Report SmartMarket Improves ProjectSchedulePerformance D Improves ProjectSafety Helps DealWithSkilledLaborShortages Improves ProjectQuality Decreases ConstructionCosts odge Data&Analytics,2020

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CONTINUED 61 Dodge Data &Analytics Data Dodge 72 81 97

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Responses for Next 3Years) Next for Responses on Based (Index Construction Modular or Performance When Using Prefabrication Budget and Schedule on BIM of Impact responses. those from created an index reflect right at charts in the Numbers construction. modular for list a separate and prefabrication of use future increased preventing are that factors of a list from important most three top their selected participants Survey Modular Construction and of Use Future Prefabrication Top Obstacles Preventing Increased p3 FutDrvrs D A Project DeliveryMethodPreventsEffectiveModularUsePlanning Our ProjectT A Owner IsNotInterestedinaModularApproach MODULAR CONSTRUCTION A A Our ProjectT Prefabrication NotPartofProjectDesign Project DeliveryMethodPreventsEffectivePrefabricationPlanning PREF odge Data&Analytics,2020 vailability ofTr vailability ofModularComponentManufacturers vailability ofTr vailability ofPrefabricationShopLocally www.construction.com ABRICATION ypes NotApplicableforModularConstruction ypes NotApplicableforPrefabrication ained Workforce toInstallModularComponents ained Workforce toInstallPrefabricatedComponents 41 51 54 66 70 81 90 92 94 96 Data:­Introduction

Prefabrication and Modular Construction

his SmartMarket Report is a follow-up to a study originally conducted by Dodge Data & Analytics DATA Analysis in This Report (when part of McGraw Hill Construction) and To support this separate analysis approach, published in 2012 as the Prefabrication and Dodge created an online survey with two TModularization: Increasing Productivity in the Construction lines of inquiry, one for prefabrication Industry SmartMarket Report. Its purpose is to establish and the other for modular construction. 66% of total respondents to the study, the current and likely future use of both prefabrication including architects, engineers, GCs/ and modular construction, quantify users’ benefits CMs, trade contractors and modular and challenges related to each, and increase industry builders/manufacturers, responded to understanding of which factors will most effectively drive the prefabrication line of inquiry and the growth and expand future use. remaining 34% responded to the modular ones. See the Methodology on page 64 for About Prefabrication and more information. The findings reported in the Prefabrication Modular Construction Trends section of this report represent Although each can be considered as part of a larger the respondents to the prefabrication category of offsite construction, there are meaningful line of inquiry, and those in the Modular differences between prefabrication and modular Construction Trends section reflect those construction. For example, they are at very different stages that responded to the modular construction of maturity in the US construction market: line of inquiry. Because of the unique • 94% of survey respondents cite experience with nature of their perspectives, the responses

PREFABRICATION AND MODULAR CONSTRUCTION 2020 MODULAR CONSTRUCTION AND PREFABRICATION provided by the modular builders/ prefabrication over the last three years. manufacturers in both lines of inquiry • 38% have used permanent modular construction. were aggregated and are reported on in a • 28% have used relocatable modular construction. separate section of this report.

They also require different planning approaches and implementation strategies, provide different types of benefits and will require different drivers to spur their future growth. For these reasons prefabrication and modular construction are each analyzed and reported on independently in the body of this study.

Definitions From the Modular Building Institute That Are Used in This Survey • PERMANENT MODULAR CONSTRUCTION—A design and construction process performed in a manufacturing facility that produces building components or modules that are constructed to be transported to a permanent building site. • RELOCATABLE BUILDING—A partially or completely assembled building that complies with applicable codes or state regulations and is constructed in a building manufacturing facility using a modular construction process. Relocatable modular buildings are designed to be reused or repurposed multiple times and transported to different building sites.

Dodge Data & Analytics 7 www.construction.com SmartMarket Report Data:­Prefabrication Trends

Most Frequent Building Types for Use of Prefabrication

Prefabrication of single and multi-trade assemblies can Architects/Engineers’ Top 10 Most Frequent be used on a wide variety of building types. This section

DATA Building Types for Using Prefabrication of the report compares the recent experience of the (Forecast for Next 3 Years Compared With History designers, GCs/CMs and trade contractors designated of Last 3 Years) for the prefabrication line of inquiry with their respective Dodge Data & Analytics, 2020 forecasts for the next three years. Architects/Engineers (Next 3 Years) Architects/Engineers (Last 3 Years) Architects’ and Engineers’ Perspectives Ofces Low-Rise (1–4 Stories) The chart at right shows the top 10 building types (from 48% an overall list of 14) that architects and engineers believe 22% will have frequent use of prefabricated single and/or multi-trade assemblies over the next three years. To Commercial Warehouses evaluate the dynamics of the market, the chart also 25% compares those forecasts with this group’s experience 20% with prefabrication frequency over the past three years on those same 10 types of projects. Public Buildings 24% OFFICE BUILDINGS While nine of the top 10 show forecasted growth over 14%

PREFABRICATION AND MODULAR CONSTRUCTION 2020 MODULAR CONSTRUCTION AND PREFABRICATION the next three years, low-rise office buildings (1–4 stories) Healthcare Facilities stand out, surging from less than a quarter of firms (22%) 23% citing high frequency in the past to nearly half (48%) forecasting it in the near future. That building type 19% was already the second most common, so this prediction Retail Stores and Shopping Centers of strong organic growth suggests that prefabrication 23% is well on its way to becoming a standard practice in that market. 15% By contrast, high-rise office (five or more stories) Multifamily ranked 11th among the 14 with only 13% of design firms 21% predicting high frequency of prefabrication. (High-rise office is not included in the chart at right since it did 39% not rank in the top 10.) This may be due to the greater College Buildings and Dormitories complexity of lifting and installing single and multi-trade 20% assemblies on these projects. 15% MULTIFAMILY RESIDENTIAL Contrasting with design firms’ generally positive Manufacturing Buildings prefabrication forecast, multifamily residential shows a 19% dramatic decrease in the predicted level of prefabrication. 11% This contrasts with their bullish forecast for the use of permanent modular construction in this market (see page Hotels and Motels 35), so it may be a matter of replacing prefabrication with 17% modular in their view. 12%

Schools K–12 16% 10%

SmartMarket Report Dodge Data & Analytics 8 www.construction.com

BldgsPerMOD (1) PREFABRICATION AND MODULAR CONSTRUCTION 2020 DATA

high prefabrication activity. high prefabrication of forecast three-year in their it including professionals design (23%) of aquarter almost with professionals, for GCs/CMs, whereas it ranks fourth for design 10 top in the rank even not does type building This LITTLE EXPECTED ACTIVITY SEE CENTERS SHOPPING AND RETAIL STORES firms. 17% design of just with compared building-type inthis prefabrication for demand future the on bullish are GCs/CMs of (30%) third one Almost PROMISING LOOK MOTELS AND HOTELS design firms. of (48%) half almost with compared market future a hot (32%) predicting third one than less with muted, more are GCs/CMs growth, future see groups both Though PREDICTIONS GROWTH SOFTER SEE (1–4 STORIES) OFFICE LOW-RISE ofusage prefabrication. future for prediction intheir frequent most second firms, rank GCs/CMs multifamilyresidential as design of perspective negative the with Contrasting GROWTH SHOWS MULTIFAMILY RESIDENTIAL forecast. that with agree firms design of 23% only comparison, By well. as market future top the forward, going types building predicted top their among it including (49%) half nearly with and, years three past the over frequent most the both as rank facilities healthcare them, Among types. 10 top building these of ineach prefabrication of growth predict GCs/CMs LIST THE TOP FACILITIES HEALTHCARE activity. show prefabrication the most will believe 14) of they that list overall an (from types 10 top building the shows right at chart The experience. reported their does as view, professionals’ design the from differs years three next the over assemblies trade multi- and single prefabricated of use frequent have will types building which for GCs/CMs by forecast The Perspectives Managers’ Construction and Contractors’ General Types Building Prefabrication Frequent for Use of Most Trends Prefabrication

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Compared With History of Last 3Years) Last of History With Compared 3Years Next for (Forecast Prefabrication Using for Types Top Building 10 Frequent GCs/CMs’ Most BldgsPerMOD (2 Of ces High-Rise(5+Stories) Schools K–12 Public Buildings Of ces Low-Rise(1–4Stories) Multifamily Healthcare Facilities D Commercial W Manufacturing Buildings Hotels andMotels College BuildingsandDormitories odge Data&Analytics,2020 www.construction.com GC/CM (Last3Y GCs/CMs (Next3Y

arehouses CONTINUED ears) ) ears) 15 % 19

% 21% 22% 25% 25% 24% 26% 26% 27% 29% 29% 30% 32% 32% 32% 26% 36% SmartMarket Report SmartMarket 40% 49% PREFABRICATION AND MODULAR CONSTRUCTION 2020 DATA for design firms. 11th and GCs/CMs for 10th with compared forecast, their in fourth are stories) (5+ buildings office high-rise and types), building 10 14 top (among possible intheir even not are stories) (1–4 projects office low-rise in that CMs (23%). history their in it cited who those as forecast in their it (47%) including many as twice over with second, multifamily rank also They prefabrication. frequent feature will and has that type project top the as healthcare inseeing GCs/CMs to similar are contractors trade specialty from findings The Contractors’ Perspectives Specialty Trade related to model-driven prefabrication.) findings more for 22 page (See prefabrication. driven model- in enabling BIM of role powerful the underscores This types. 10 top building the of six for relationship direct that demonstrates below matrix The common. increasingly is use BIM where projects institutional and commercial on especially prefabrication, of frequency ahigh predict all they which with frequency the and contractors trade and GCs/CMs firms, design by BIM of use the between correlation a strong show data The Forecasts by Building Type on Prefabrication Use Impact of BIM BIM Usage) of (by Level Prefabrication of Use Frequent Predicting Respondents All of Percentage Types Building Prefabrication Frequent for Use of Most Trends Prefabrication SmartMarket Report SmartMarket Hotels andHotels Motels and Dormitories BuildingsCollege Public Buildings Building Types (5+ Stories) High-Rise Offices Schools K–12 Healthcare Facilities But interestingly, trade contractors differ from GCs/ from differ contractors trade interestingly, But

Use BIM Projects No 20% 20% 24% 18% 13%

9% of Projects of 50% Than Less on Use BIM

Dodge Data &Analytics Data Dodge 33% 30% 23% 44% 34% 25% of Projects of More or 50% on BIM Use 39% 38% 45% 57% 31% 41%

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of Last 3Years) Last of History With 3Years Compared Next for (Forecast TypesBuilding Prefabrication for Using Top 10 Frequent Trade Most Contractors’ BldgsPerMOD (3 Public Buildings Of ces High-Rise(5+Stories) College BuildingsandDormitories Multifamily Healthcare Facilities D Hotels andMotels Commercial W Manufacturing Buildings Schools K–12 Retail StoresandShoppingCenters odge Data&Analytics,2020 T T www.construction.com rades (Last3Y rades (Next3Y

arehouses CONTINUED ears) ears) ) 21% 23% 23% 29% 31% 33% 34% 34% 33% 37% 38% 37% 37% 39% 39% 43% 45% 47% 58% 63% PREFABRICATION AND MODULAR CONSTRUCTION 2020 DATA

■ ■ ■ next three years. years. three next the over assemblies single-trade of use in the growth significant predict survey in the participated that years. three next the over used be to likely are they which on percentage the and years, three past the over used been have they where projects of percentage the trade prefabricated assemblies, respondents identified single- of growth future and usage current To the explore by Company Type Assemblies Single-Trade of Using Frequency assemblies. of types both of use future and current explores report the of part This hospitals. in racks corridor above-the-ceiling as such assemblies multi-trade create to together working trades several by or bathrooms, public large or headwalls for assemblies plumbing behind-the-wall as such work the of part their on trade a single by out carried be can Prefabrication FrequentlyMost Prefabricated Assemblies Trends Prefabrication

on half or more of their future projects. projects. future their of more or half on assemblies single-trade employ will they that predicting enables contractors to implement prefabrication. to implement prefabrication. contractors enables that in a way designing with engaged more become to them for a need indicates This projects. their of most on usage overall 16% anticipating percentage, only with years, three include single-trade assemblies. will projects their of a majority that (37%) predicting positive, similarly are GCs/CMs enthusiastic, most the are Trade contractors Although predicting a strong increase over the next next the over increase a strong predicting Although The chart at right shows that all three company-types company-types three all that shows right at chart The design professionals forecast the lowest lowest the forecast professionals design

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By TypeBy Company) of Trade Assemblies Single- Prefabricated With Projects of Percent PREF D Ye (Past 3 Engineers Architects/ 15% 28% odge Data 6% 7% ars) www.construction.com 50 to74%ofProjects 25 to49%ofProjects 75% orMoreofProjects AB Charts Assemblies (1.04S-T & Analytics, 2020 Ye (Next 3 Engineers Architects/ 26% 42% 8% 8% ars) Years) (Past 3 GCs/CMs 18% 21% 48% 9%

(Past 3 Years and Next 3Years 3Years(Past Next and Years) (Next 3 GCs/CMs 23% 11% 26% 60% As) SmartMarket Report SmartMarket Years) (Past 3 Trades 12% 12% 35% 59% 16% 14% 39% 69% (Next Trades Years) 3 Prefabrication Trends

Most Frequently Prefabricated Assemblies CONTINUED

Frequency of Using Specific Types of Percentage of Companies Using Specific

DATA Single-Trade Assemblies Prefabricated Single-Trade Assemblies The companies that reported using single-trade (Past 3 Years, By Type of Company) assemblies were asked to indicate how many Dodge Data & Analytics, 2020 specific types they have used. The chart at right Architects/Engineers GCs/CMs Trades shows those results. ■ The growth of prefabrication in healthcare and HVAC, Plumbing and Electrical Racks, similarly MEP-intensive projects gives rise to the Risers and Other Assemblies (Single-Trade) high percentage of all respondents citing racks, risers 49% and other single-trade assemblies, especially among 65% trade contractors who can often make the decision 72% to prefabricate their trade’s part of the work without significantly impacting or involving other trades. Steel Assemblies ■ Steel assemblies are a well-established use of single- 74% trade prefabrication, as demonstrated by the high 62% percentage of architects (74%) indicating experience 30% with them. Headwall Assemblies (Single-Trade) ■ Single-trade headwall assemblies are a healthcare specialty, frequently involving piping for medical 23% gases. The relatively low percentage of trade 43% PREFABRICATION AND MODULAR CONSTRUCTION 2020 MODULAR CONSTRUCTION AND PREFABRICATION contractors citing their use (30%) is more a reflection of 30% the fact that this is most frequently done by mechanical contractors, which represent only a portion of all trade Other Single-Trade Assemblies contractors participating in this study. 23% The “Other” category of single-trade assemblies 23% identified by respondents includes aluminum storefront, 25% a variety of precast concrete elements, millwork, wood framing and trusses, subfloor systems, equipment skids and racks for conduit or equipment.

SmartMarket Report Dodge Data & Analytics 12 www.construction.com

PREFAB Charts Assemblies 1.05 MTAs (2) PREFABRICATION AND MODULAR CONSTRUCTION 2020 DATA

■ ■ ■ strong growth over the next three years. years. three next the over growth strong very predicting are respondents all ones, single-trade with than smaller notably is projects their of half over on assemblies multi-trade of use predicting percentages years. three next the over them use to likely are they which on percentage the and years, three past the over assemblies multi-trade used have they where projects assemblies, respondents identified thepercentage of prefabricated single-trade about question the to Similar by Company Type Assemblies Multi-Trade of Using Frequency Assemblies Prefabricated Frequently Most Trends Prefabrication

the ambitious targets all of these groups are setting. setting. are groups these of all targets ambitious the solutions design their in assemblies assembly. asingle-trade as work own their in prefabricating do they than assemblies multi-trade create to decisions over control less have contractors trade individual because perhaps groups other the years. three next the over assemblies multi-trade with involved becoming forecasting is group each of more 20% about and use, recent their of are almost equivalent interms

Design professionals will need to enable multi-trade multi-trade enable to need will professionals Design Interestingly, are trades positive slightly less contractors trade and GCs/CMs professionals, Design The chart at right shows that, although the total total the although that, shows right at chart The Dod in order to support support to in order ge Data & Analytics Data ge than than

13 CONTINUED

Company) 3Years Type by 3Years of (Past Next and Multi-Trade Assemblies Prefabricated With Projects of Percent PREF D Ye (Past 3 Engineers Architects/ 16% 31% odge Data 6% 9% ars) 50 to74%ofProjects 25 to49%ofProjects 75% orMoreofProjects www.construction.com AB Charts Assemblies (1.05MT & Analytics, 2020 Ye (Next 3 Engineers Architects/ 33% 12% 53% 8% ars) Years) (Past 3 GCs/CMs 16% 31% 6% 9%

Years) (Next 3 GCs/CMs 32% 13% 54% 9% As) SmartMarket Report SmartMarket Years) (Past 3 Trades 11% 28% 9% 8% Years) (Next 3 Trades 19% 13% 14% 46% PREFABRICATION AND MODULAR CONSTRUCTION 2020 DATA ■ ■ ■ (by Level of BIM Usage) BIM of (by Level Assemblies Prefabricated of Frequency Predicting Respondents All of Percentage prefabrication. model-driven of role powerful the reinforcing further assemblies, trade multi- and single both of frequency predicted the impacts use BIM of level the demonstrates, below matrix the As Impact aStrong Has Use BIM results. those shows right at chart The used. have they types specific many how indicate to asked were usage reported that companies The Multi-Trade Assemblies of Types Specific of Using Frequency Assemblies Prefabricated Frequently Most Trends Prefabrication SmartMarket Report SmartMarket

Over 11% Multi-Trade 11% Multi-Trade Over Single-Trade 50% Over 3 Years Next in Projects on Assemblies of Use Predicted of these types of assemblies. assemblies. of types these of versions modular of adoption a rapid presage may also GCs/CMs and designers of half nearly among familiarity mature. to continues assemblies prefabricated for market overall the as increase should and well scores growth. future for well bodes also trade curtainwall and exterior wall assemblies, multi- with experience cite firms design of half over projects. MEP-intensive for practice standard becoming to way their on well are assemblies these that suggests this groups, these by growth for forecasts strong overall MEP-oriented multi-trade assemblies. with years three past the over experience report contractors trade of quarters three and GCs/CMs of Past experience using interior wall or soffit panels also also panels soffit or wall interior using experience Past assemblies, steel single-trade for findings the like Also thirds two assemblies, single-trade for findings the Like

BIM Use Projects (0%) No 27% 16% of Projects of 50% Than Less on BIM Use 27% 41% Dodge Data &Analytics Data Dodge Coupled with the the with Coupled Projects of More or 50% on BIM Use 55% 51% which which This This

14 CONTINUED

(Past 3Years(Past Type by Company) of Prefabricated Multi-Trade Assemblies Percentage of Companies Using Specific Exterior W Curtainwall Assemblies Risers andOtherAssemblies(Single-T HV D Interior W Headwall Assemblies(Multi-Trade) PREF odge Data&Analytics,2020 AC, PlumbingandElectricalRacks, Architects/Engineers www.construction.com AB Charts 8% all orSof tPanels 10 10 all Asemblies % % 19 A ssemblies 1.05MTAs (2) % GCs/CMs 32% 32% 39% 39% 38% 40% rade) 45% T rades 54% 59% 64% 77% PREFABRICATION AND MODULAR CONSTRUCTION 2020 DATA

■ ■ ■ ■ ■ over the past three years by engaging in prefabrication. in prefabrication. engaging by years three past the over improvementperformance that respondents experienced schedule of percentage the shows right upper at chart The Performance Schedule performance. cost and schedule on prefabrication of impact positive the examines report the of page This industry. construction in the metrics important most the of two are budget construction the and schedule project the with Compliance from prefabrication. prefabrication. from years three last the over improvements performance cost and schedule report BIM use that companies the of percentages higher below, matrix inthe shown As Improvements Enhances Use BIM in prefabrication. engaging by years three past the over improvementperformance that respondents experienced cost of percentage the shows right lower at chart The Performance Cost (by Level of BIM Usage) Usage) BIM of (by Level and Cost Performance From Prefabrication Percentages Reporting Improved Schedule Performance Cost and Schedule On of Prefabrication Impact Trends Prefabrication

Performance Performance Cost Improved Reporting Percentage Performance ScheduleImproved Reporting Percentage from prefabrication. prefabrication. from improvement schedule and cost both of evaluation top category. schedule compression. positive impact impact, impact. 5% budget than better (55%) citing (82%), performance cost improved impact. strong a very has it prefabrication, from benefit GCs/CMs are about equal about are GCs/CMs cost about positive more far also are firms Design about enthusiastic more even are Trade contractors schedule a report firms 31% only design of Although greatest the experience Trade contractors even slightly exceeding GCs/CMs in the in the GCs/CMs exceeding slightly even with half citing better than 5% 5% than better citing half with Use BIM Not Do That Companies 22% 31% with their positive positive their with most of those (21%) indicate (21%) those of indicate most Projects of 50% Than Less on BIM Use That Companies

49% 49% Dod CONTINUED with well over half half over well with ge Data & Analytics Data ge

Projects of More or 50% on BIM Use That Companies

52% 61%

15

Three Levels of Improvement) of Levels Three Performance Budget Project on Prefabrication of Impact Improvement) of Levels Three of Each Schedule Performance Reporting (Percentages Project on Prefabrication of Impact D D 1.07 CSben(2) Engineers Architects/ Engineers Architects/ 1.07 CSBen odge Data odge Data Decreased 6–10% Decreased 6–10% Decreased byMoreThan10% Decreased byMoreThan10% Decreased by5%orLess Decreased by5%orLess www.construction.com 13% 11% 35% 59% 31% 21% 4% 6% & Analytics, 2020 & Analytics, 2020 CC Trades GC/CM CC Trades GC/CM (Percentages Reporting Each of of Each Reporting (Percentages 15% 12% 31% 58% 26% 21% 11% 58%

17% 38% 27% 82% 23% 17% 33% 73% SmartMarket Report SmartMarket PREFABRICATION AND MODULAR CONSTRUCTION 2020 DATA ■ ■ ■ in the survey. survey. in the firms design from responses the shows right at chart The Architects/Engineers levels. rating high very and high medium, their of sum the reflects order the Trades). each, In CMs, GCs/ (Architects/Engineers, groups respondent main three the from findings the show separately report the of section inthis charts the perspectives, their between commonalities and To contrasts examine BYRESPONSES COMPANY-TYPE delivery. project of aspects specific other seven on prefabrication of impact the examined survey the cost, construction and schedule project with compliance improved to addition In of PrefabricationImpact on Seven SpecificBenefits Trends Prefabrication SmartMarket Report SmartMarket

project delivery. project on impact positive its of appreciation their to contribute will which of all prefabricate, to what deciding of process the in engaged more are owners and quantified are benefits its grows, usage prefabrication as future the in increase should This rankings. first-place of satisfaction ingreen. interest strong group’s (20%), votes impact high very most the garners it importantly, and, rated, second-highest by which design solutions can actively enhance safety. enhance actively can solutions design which by means other and Design Through Prevention of growth potential the for encouraging is finding This aspect. that in involved directly less are firms design though even (89%), performance, safety improved (66%) cite Two thirds overall first scores productivity improved Although Three quarters (75%) report increased client client increased (75%) report quarters Three reduced waste generated by construction is the the is by construction generated waste reduced and it earns the second-most number number second-most the earns it and

Dodge Data &Analytics Data Dodge CONTINUED demonstrating this this demonstrating

16

Improved Quality Increased ScheduleCertainty Reduced W Improved Productivity D Factor) Each for Contribution High or Very High Medium, Reporting (Percentages Factors Key Seven on Performance of Impact PrefabricationArchitects/Engineers: PREF Improved SafetyPerformance Increased ClientSatisfaction Improved CostPredictability odge Data 8% 9% 10 11 20% 11 13 Very High www.construction.com % % % % AB ChartsBenefits1.08-9OtherBn(2) & Analytics, 2020 aste GeneratedbyConstruction 24% High 29% 35% Medium 38% 39% 32% 42% 34% 33% 66% 34% 28% 34% 75% 34% 39% 78% 80% 83% 86% 89% PREFABRICATION AND MODULAR CONSTRUCTION 2020 DATA

■ ■ ■ ■ ■ all seven benefits. seven all for practitioners these among support widespread more indicating 90%), to (79% range overall in a narrower fall scores high very and high medium, of totals combined the and higher generally are right at shown GCs/CMs from responses the firms, design with Compared GCs/CMs Benefits on Seven Specific Prefabrication of Impact Trends Prefabrication

critical metric for GCs and CMs. and GCs for metric critical a such is it because meaningful particularly is which construction practices. construction green of importance the for appreciation an (18%), by construction generated prefabrication. of use the increase to reason compelling (20%), first ranks safety variances. schedule of risk reducing by certainty improves prefabrication that suggests finding this schedule, on or behind ahead, is project overall an whether of 15). page Regardless (see reduction ofdifferent type schedule-related benefit thanschedule 10%). with (19% compared impact high very and 80%) firms, design with than GCs/CMs with higher noticeably scores The strong very high impact score for reduced waste waste reduced for score impact high very strong The improved responses, impact high very the Among 90% cite increased schedule certainty quality improved on prefabrication of impact The (90%), rated highly is again productivity Improved both for total score (90% compared with with compared (90% score total for both providing perhaps the most most the perhaps providing reflects reflects Dod ge Data & Analytics Data ge , which is a a is , which

17

Reduced W Increased ScheduleCertainty Improved Quality Improved Productivity D Factor) Each for Contribution High or Very High Medium, Reporting (Percentages Factors Key Performance Seven on Prefabrication of Impact GCs/CMs: PREF Increased ClientSatisfaction Improved CostPredictability Improved SafetyPerformance odge Data 18 14 9% 20% 19 14 10 www.construction.com Very High % % % % % AB ChartsBenefits1.08-9OtherBn(3)

& Analytics, 2020 CONTINUED aste GeneratedbyConstruction High 29% 31% 33% Medium 45%

36% 42% 42% 41% 42% 30% 25% SmartMarket Report SmartMarket 31% 35% 34% 79% 83% 83% 85% 90% 90% 90% Prefabrication Trends

Impact of Prefabrication on Seven Specific Benefits CONTINUED

Trade Contractors Trade Contractors: Impact of Prefabrication on Seven Scoring highest among all respondent groups (range of

DATA Key Performance Factors (Percentages Reporting Medium, 81% to 93%), trade contractors’ responses (shown in the High or Very High Contribution for Each Factor)

chart at upper right) reveal meaningful differences from Dodge Data & Analytics, 2020 those of design firms and GCs/CMs. Very High High Medium ■ The percentages of trades giving very high impact scores is significantly larger for every aspect studied, Improved Quality as much as tripled over other groups. 32% 43% 18% 93% ■ Improved quality ranks first overall,compared with second place for GCs/CMs and fourth place for Improved Productivity design firms. 25% 46% 21% 92%

■ Their strong rating for improved safety (31% very high Increased Schedule Certainty and 86% overall) is especially meaningful because it is 15% 42% 31% 88% the trade contractors that provide jobsite labor. ■ Even trade contractors’ lowest rated benefits among Improved Safety Performance the seven, reduced waste generated by construction 31% 35% 20% 86% and increased client satisfaction both show strong very high ratings (25%) and perfectly respectable overall Improved Cost Predictability ratings of 81%. 14% 40% 30% 84%

PREFABRICATION AND MODULAR CONSTRUCTION 2020 MODULAR CONSTRUCTION AND PREFABRICATION Increased Client Satisfaction The Impact of BIM on Performance Factors 25% 35% 21% 81% To see the impact of BIM on those receiving the top levels Reduced Waste Generated by Construction of benefits, the chart at lower right shows, on average 25% 35% 21% 81% across all seven of these factors, the percentage of all respondents who report high or very high positive impact from their use of prefabrication, broken down by their level of BIM usage. Percentages Reporting Improved Project Delivery ■ Significantly less than half (44%) of the companies Performance From Prefabrication currently not using BIM report they are receiving this (Average Percentage Reporting High or Very High high level of benefit from prefabrication. Contribution Across All Factors, by Level of BIM Usage) ■ By contrast, almost two thirds (64%) of those who Dodge Data & Analytics, 2020 report using BIM frequently are enjoying high levels of these performance improvements from prefabrication, 64% and companies still growing their BIM implementation 54% PREFAB Charts Benefits 1.08-9 OtherBn (4) are outperforming those that have not yet adopted, with 44% well over half (54%) seeing improved performance.

Companies Companies Companies That Do Not That Use BIM That Use BIM Use BIM On Less Than on 50% or More 50% of Projects

SmartMarket Report Dodge Data & Analytics 18 www.construction.com PREFABRICATION AND MODULAR CONSTRUCTION 2020 DATA

■ ■ ■ successfully deployed. deployed. successfully be cannot prefabrication assume to reason legitimate a not is a project on in place be may it that fact the so belief, that 18% stated only Importantly, prefabrication. hinders design-bid-build traditional believe they which to degree the asked also were Participants PREFABRICATION DESIGN-BID-BUILD HINDERING prefabrication. of use their with help significant citing respectively 26%, and 30% with well, especially score both design-build and delivery project integrated use of prefabrication. the enabled method that believe they much how asked were right lower at chart in the shown methods the of any with experience prefabrication indicating Respondents Prefabrication Supports Method Delivery toWhich Degree frequent. most third or second first, either been having as method each cited who respondents all of percentages the by out broken these shows right upper at chart The years. three past the over prefabrication involved that projects their on in use were methods delivery project various frequently how asked were Participants Method Delivery of Project Frequency on Prefabrication of Delivery Project Method Impact Trends Prefabrication

would indicate. indicate. would than this comparison frequency proportional greater a far at market inthe occurs which design-bid-build, for total the with compared when especially prefabrication, of use the to correlation a meaningful have both so respondents, of half nearly by frequent most three conducive environment for prefabrication. a highly as it identifying certainly design-bid-build, for combination that surpass they together, added are rankings place second and first its when And method. frequent. most the as it citing 42% with projects, prefabrication to correlation highest the shows build design-bid- traditional that surprising not is it in use, The other two methods are each included among the the among included each are methods two other The frequent most second the as ranks Design-build currently method delivery project common most the As While all three methods garner very positive ratings, ratings, positive very garner methods three all While

Dod CONTINUED ge Data & Analytics Data ge

19

(By Company Type)(By Company Method Delivery Project by the Enabled Was Prefabrication Which to Degree Methods) (Top Frequent 3Most 3Years Last the in Used Was Prefabrication When Method Delivery Project of Frequency 1.15 ProjDel(2 Integrated ProjectDelivery D D Proj Del(1 Construction ManageratRisk Design-Build Traditional Design-Bid-Build Manager atRisk Construction odge Data 9% odge Data 14 17% 50% Helped 67% Helped Signicantly www.construction.com Second MostFrequent Third MostFrequent First MostFrequent % 28% & Analytics, 2020 & Analytics, 2020 14 13 % ) 42% % ) 20% 17 einbidIntegrated Design-build 75% 49% 26% %

38% 19 % Project Delivery 15 76% 46% 30% % 11 SmartMarket Report SmartMarket % PREFABRICATION AND MODULAR CONSTRUCTION 2020 DATA ■ ■ ■ ■ prefabrication companies in the last six months. months. six last in the companies prefabrication about heard have they where shows right at chart The Suppliers About Prefabrication Learning findings. those addresses report the of part This projects. prefabrication for products procure to use frequently most they channels and what suppliers prefabrication and select about learn participants how examined survey The Prefabrication Suppliers Procurement and Trends Prefabrication SmartMarket Report SmartMarket

construction industry. construction inthe expands use its as grow to expected be (48%). shows trade from others than more (51%).colleagues and friends by influenced strongly also are (65%) but publications industry (54%). with work they GCs/CMs the (54%) and publications industry Social media is still an emerging source but can can but source emerging an still is media Social learn contractors trade (48%) publications to addition In on group other any than more rely GCs/CMs The through informed frequently most are firms Design

Dodge Data &Analytics Data Dodge CONTINUED

20

T Clients Friends andColleagues Print andDigitalT D 6Months) Last the Over Source Each Prefabrication Companies About Information of Top Sources Social Media GCs/CMs TheyW NA 1.16 Suplrs(1 rade Shows odge Data&Analytics,2020 1% Architects/Engineers www.construction.com 13 ) ork With % rade Publications 23% 24% GCs/CMs 30% 31% 33% 34% 35% 36% 37% (Percentages Citing Citing (Percentages T rades 48% 48% 51% 54% 54% 65% Prefabrication Suppliers Procurement and

PREFABRICATION AND MODULAR CONSTRUCTION 2020 DATA

■ ■ ■ Products for Prefabrication Projects Procuring of Method Frequent Most purchasing agreements.) locked-in or owner-procured as such methods, other through procuring are they indicated group each of (4%) percentage a small because 100% to up add not do direct. buying mostly are (37%) GCs/CMs of third one over channels, distributor traditional through going primarily report contractors (76%) trade of quarters three over and GCs/CMs of (59%) manufacturers. from directly buy primarily they if or projects prefabrication their for products to procure channels distribution traditional through go often most they if asked were Contractors for Prefabrication Products Procuring four responses. top the shows right at chart The projects. their on services prefabrication of supplier a selecting in influential most the is that six among factor one the identified Participants Supplier of aPrefabrication Selection Prefabrication and Suppliers Procurement Trends Prefabrication less influential. less much are (distance-wise)”) project the to closest is whoever use “We and projects” our of all for company prefabrication same the (“We use options two other The

Trade Contractors Trade GCs/CMs responses shown in the chart. chart. in the shown responses the from so they were deducted prefabrication, self-perform they that report survey the of part in this them. to available alternatives about knowledgeable as not are they because perhaps trades, or GCs/CMs may have. they criteria internal any or input owner price, low than About half of the trade contractors that participated participated that contractors trade the of half About than owners by influenced more much are firms Design more far expertise value GCs/CMs and firms Design (Note that the percentages for each company type type company each for percentages the that (Note thirds two nearly while indicates, below matrix the As Distribution Channels Distribution Traditional 59% 76% Dod Manufacturer Direct From the ge Data & Analytics Data ge 20% 37%

21 CONTINUED

Have TheirOwnSetofCriteria Owner Preference Lowest Bidder Company WiththeBestExpertiseforProject D 6Factors) of a List Prefabrication Company a of Selection Influences Top That Factor Company ClosesttotheProject(byDistance) Same PrefabricationCompanyforAllProjects 1.16 SUPLRS(2)PREF odge Data&Analytics,2020 www.construction.com Architects/Engineers 3% 2% 2% 3% 4% 6% 7% 8% 12 14 14 % 15 % % AB %

GCs/CMs 20% 23% (Most Influential From From Influential (Most T rades 29% SmartMarket Report SmartMarket 39% 45% 47% PREFABRICATION AND MODULAR CONSTRUCTION 2020 DATA ■ ■ ■ ■ those findings. those addresses report the of part This prefabrication). driven model- (i.e., prefabrication to specifically applied being is BIM how about asked were inquiry of line prefabrication the for designated also companies the group, that BIM engagement, see Methodology page 64). Within on information more (for projects their of percentage some least at on deployed being is BIM that say survey in the participated that (89%) companies Most next three years. three next the within levels those at operating be will they believe that levels of and implementation, the percentages at several prefabrication model-driven with engaged currently are that above described users BIM the of percentages the shows right upper at chart The for Prefabrication of BIM Current and Future Implementation prefabrication on 50% or more of their projects. projects. their of more or 50% on prefabrication for BIM use that company-type by percentages future and current the shows right lower at chart The Company-Type by Implementation High-Level Prefabrication for Model-Driven ofUse BIM Trends Prefabrication SmartMarket Report SmartMarket

in the next three years. years. three next in the implementation of level a high predicting (53%) half over actively enable prefabrication in their design solutions. design intheir prefabrication enable actively to more doing be will they that indicator a positive years, three next the over implementers high-level of number current their double nearly engaged in model-driven prefabrication. years. three next inthe 75% to 44% dramatically, grow will projects their of a quarter Though currently the least active, active, least the currently Though engaged, deeply most the are Trade contractors be (99%) will users BIM all virtually years, three Within least at on prefabrication for BIM using percentage The

design firms will Dodge Data &Analytics Data Dodge

CONTINUED which is is which

with with from from

22

Than 50% of Projects (Current and Next 3Years) Next and (Current Projects of 50% Than More on Prefabrication for BIM Using (Percentages Prefabrication by Company-Type for of BIM Implementation High-Level in 3Years) Levels Predicted (Comparing Current Implementation Levels With Model-Driven Prefabrication With Engaged Users BIM of Percentage 1.10-11 Ty D D 17% Engineers Architects/ urn 3Years Current odge Data odge Data psMOD01 25% to49%ofProjects No (0%)Projects Less Than25%ofProject Over 50%ofProjects 49% 17% More Than50%ofProjectsintheNext3Years Planning toUseBIMforPrefabricationon More Than50%ofProjects Currently UsingBIMforPrefabricationon 27% www.construction.com 7% 31% & Analytics, 2020 & Analytics, 2020 BIM (2) prefab 24% 22% 33% 42% GCs/CMs 1% 35% s 38% Trades 53% PREFABRICATION AND MODULAR CONSTRUCTION 2020 DATA

■ ■ ■ company-types. all across percentage average the of inorder listed are They important. most three top their among be to each selected many how indicating percentages with type, company- by reasons eight leading the shows right at chart The it. with engaging are they 10) of that a list (from reasons three to up select to asked were prefabrication for BIM of users current impact, its for expectations the and adoption its for drivers the To understand for Prefabrication BIM Reasons toUse Prefabrication for Model-Driven BIM Use of Trends Prefabrication increasingly wide variety of projects. of variety wide increasingly an on mandated be will use its that expect to reasonable is it understood, widely more become benefits its and grows prefabrication for BIM of use the As GCs/CMs). from demand citing contractors trade (from 34% of high a to owners) from demand citing GCs/CMs (from 20% of low a from ranging findings, these in influence significant shows member team project another by Demand PREFABRICATION FOR BIM OF USE MANDATING THE

are more attentive to cost and schedule improvements. improvements. schedule and cost to attentive more are (17%), trades with compared quality improved GCs/CMs. of concern the is which cost, construction overall the lower always not may that but prefabricating, by savings cost operational internal experience cost reductions. expecting on focused less are but reason) top their is it (at 44%, schedule regarding agree GCs/CMs each). for (40% performance cost and schedule improved coordination. improved for BIM of value the of company-types the by all acknowledgement equal nearly the and by this reinforce findings These disciplines. and systems between coordination spatial Interestingly, twice as many design firms (34%) select (34%)select firms design many as twice Interestingly, are contractors trade for importance high equally Of Successful prefabrication requires comprehensive This may be because trade contractors contractors trade because be may This the first-place ranking ranking the first-place Dod ge Data & Analytics Data ge which which

23 CONTINUED

Among Their Top Their Among Three) be to Reason Each Company-Type Selected Who Model-Driven Prefabrication for BIM Use to Reasons Important Most Reduced OnsiteRework Improved CostPerformance Improved SchedulePerformance Improved Coordination D Architect orEngineerDemand Owner Demand Contractor/CM Demand Improved Quality PREF N/A N/A odge Data&Analytics,2020 www.construction.com Architects/Engineers AB ChartsBIM(3) 17 18 % 20% 20%

GCs/CMs % 23% 24% 25% 25% 25% 26% 27% 28% 28% T rades 34% (Percentages by (Percentages 34% 34% SmartMarket Report SmartMarket 38% 38% 40% 40% 40% 44% PREFABRICATION AND MODULAR CONSTRUCTION 2020 DATA ■ ■ ■ ■ ■ ■ ■ levels of influence, represented by company-type. by represented influence, of levels high very or high either cite that percentages the shows right at chart The years. three last the over prefabrication use to decision their on had factors six of each that influence of level the rate to asked were Respondents Years) Three (Last Top Factors Influenced Use of That Prefabrication Trends Prefabrication SmartMarket Report SmartMarket

change if the current workforce challenges continue. challenges workforce current the if change years, three past the over influence strong a as shortages workforce rate trades and GCs/CMs comfortable with the outcomes. the with outcomes. comfortable more and process the with familiar more benefits, the of aware more become they as change should this but workforce. their on impact direct its of because contractors trade with 18), page (see prefabrication it. enable consciously that solutions design of development more to lead should and control cost on influence apositive have can prefabrication understand engineers and architects that demonstrates firms, design marketplace. in the expectation an becoming is capability prefabrication that indicating firms, design trades, and GCs/CMs for factor 16, 17 18).pages and (see prefabrication using by generated benefits top the influence, its for highest found throughout results. theprefabrication survey for enthusiasm of level their underscoring companies, influential as factors the of Owner demand has been the least influential factor, factor, influential least the been has demand Owner although workforce, of Speaking of a benefit as safety of evaluation the with As with highest second ranks performance cost Improved influential most second the is competitive Remaining productivity improved rate types company three All each rate contractors trade of percentages Larger even slightly outscoring GCs/CMs. This This GCs/CMs. outscoring slightly even

reinforcing similar findings for for findings similar reinforcing than the other types of of types other the than safety scores far higher higher far scores safety and it ranks third for for third ranks it and

fewer than half of of half than fewer Dodge Data &Analytics Data Dodge CONTINUED this may

24

Influence) of Level High or Very High Citing (Percentages 3Years Last in Prefabrication of Use Top Influencing Factors W Improved CostPerformance Remaining Competitive Improved Productivity D Owner Demand Safer W PREF odge Data&Analytics,2020 orkforce Shortages Architects/Engineers www.construction.com AB ChartsBIM(3) orking Conditions 13 % 23% 24% 27% 30% 37% GCs/CMs 42% 43% 45% 48% 49% 49% T rades 57% 58% 63% 66% 69% 77% PREFABRICATION AND MODULAR CONSTRUCTION 2020 DATA

■ ■ ■ ■ of Influence Level High or Very High Indicating Percentages 3Years) (Next Prefabrication of Use on Resource Industry of Impact prefabrication. of use future drive to help also would resources developed externally believe respondents the half about below, matrix inthe shown As Resources Impact of Industry scores. their of averages the reflects order The influence. of level high very or a high predict company of type each from many how represent right at chart in the percentages The years. three next the over prefabrication more drive to influential most the be will believe they benefits which identify to asked were participants expectations, future their To understand Years Three Next the in Prefabrication Top Positive Will That Drive Impacts More Trends Prefabrication

Trade Contractors Trade GCs/CMs Architects/Engineers for prefabrication. for prefabrication. schedule performance will be the top future driver future top the be will performance schedule design solutions. design their of element a valid as prefabrication embrace to ready are companies these suggests which firms, design from demand high a particularly is and GCs/CMs. with than firms design with influential more even is it influences, past for findings the to similar and, and safety in the coming years. coming the in safety and workforce on impact positive prefabrication’s GCs/CMs and trades will be very focused on on focused very be will trades and GCs/CMs that agree respondents All Improving quality project rated, highly as almost is cost construction Decreasing Components Prefabricated of Availability More 60% 58% 46% is third-ranked overall overall third-ranked is improving project Prefabrication for Standardization or Guides Design

Dod 59% 47% 46% CONTINUED ge Data & Analytics Data ge Components Prefabricated for Objects BIM

40% 41% 47%

25

Helps DealWithSkilledLaborShortages Improves ProjectQuality Decreases ConstructionCosts Improves ProjectSchedulePerformance D Influence) of Level High or Very High Forecasting (Percentages 3Years Next the in Prefabrication of Use Influence Will That Top Impacts Improves ProjectSafety D odge Data&Analytics,2020 rvrs (2) Architects/Engineers www.construction.com 3% 27% 28% GCs/CMs

36% 40% 43% 44% T rades 47% 54% SmartMarket Report SmartMarket 57% 58% 59% 60% 66% 69% PREFABRICATION AND MODULAR CONSTRUCTION 2020 DATA ■ ■ ■ ■ reflects the averages of those scores. scores. those of averages the reflects order The three. top their among obstacle each selected company, of many, how type by represent right at chart inthe percentages The prefabrication. more doing from companies their preventing are believe they 10)of that list a (from obstacles biggest three the identified also respondents drivers, the and benefits the rated Having Top Inhibiting of Use Prefabrication More Obstacles Trends Prefabrication Inspection uncertainty and concern about quality. quality. about concern and uncertainty Inspection survey: in the included were that obstacles other two of either 10%) (average cite percentages small Very SmartMarket Report SmartMarket

regardless of owner permission or awareness. awareness. or permission owner of regardless practice business driven internally an as it implement wanting prefabrication, concern. greatest their as them even though design firms identify trades, and GCs/CMs for obstacles major not are prefabrication implement types. project of variety wider in a use for developed are assemblies of types more and method of delivery regardless practice standard a of more becomes prefabrication as improve may types. company by all cited equally about both it. enable effectively more that solutions design develop to need they that message strong a be 16), should page this (see prefabrication from benefits significant experiencing report firms design trades. and GCs/CMs both for obstacle top the Trades express very low concern about owners not not owners about concern low very express Trades Availability of local and facilities trained labor to are project of type the and method delivery Project is design a project’s of part being not Prefabrication

perhaps because they often often they because perhaps

Dodge Data &Analytics Data Dodge CONTINUED Since Since These These

26

NA Their Top Three Out of 10) Top of Out Their Three Among Factor Each Include That (Percentages Projects That Use Prefabrication of Numbers Increasing to Top Obstacles D Concern AboutQuality Inspection Uncertainty Owner Doesn’t Want PrefabricatedElements Costs Too Much Availability ofTr Availability ofPrefabrication ShopLocally Our ProjectTypes NotApplicableforPrefabrication Project DeliveryMethodPreventsEffectivePrefabricationPlanning Prefabrication NotPartofProjectDesign 1.14 Obstacles odge Data&Analytics,2020 Architects/Engineers www.construction.com 2% 4% 5% 6% 10 11 12 % 13 % ained Workforce toInstallPrefabricatedComponents 15 16 % % 17 17 % % 19 % % 21% 21% % GCs/CMs 26% 27% 30% 31% 33% 33% 34% 36% T 40% rades 43% 54% PREFABRICATION AND MODULAR CONSTRUCTION 2020 Sidebar:

D developments at a rapid pace. way multifamily residential to deliver to invest in offsite construction as a costs, cities in particular are beginning past year. revenues and its workforce in the as Plant Prefab, which has tripled its meant growth for companies such The support of local governments has affordable housing in East New York. 167Modular units to deliver of with Brooklyn-based FullStack recently entered into an agreement housing crunch, while New York City in order to address the builders exploring partnerships with modular and $3,650, the city is between $2,400 price of atwo bedroom apartment is Innovation Challenge in 2018. in the Los Angeles County Housing concept won $1 million LivingHomes the CEO of Plant Prefab, whose Nest increased demand,” says Steve Glenn, meeting diminished labor and costs, land costs and permit fees increases in labor rates, material such a perfect storm of significant history. “We in the US have never had greatest housing crises in American construction comes amid one of the embrace of offsite Municipalities’ San Francisco and New York City. that plague metro areas such as help alleviate the housing shortages construction are being employed to Across the US, prefab and modular Housing Shortages developments, remain. residential hurdles forsupport but prefab regulatory municipal and interest driving are multiple major cities in US crises Housing Prefabricated Modular Multifamily and In San Francisco, where the average

Residential Faced with rising housing is finally on an upswing. pains, factory-built housing espite some growing

Dod ge Data & Analytics Data ge integrating the roles of design, integrating the roles of design, are increasingly manufacturers nature of the project. and logistics costs, depending on the often means increased upfront design At the same time, prefabrication cycle risks. exposure to market in quicker returns, as well as less occupied more quickly, resulting time means that units can be reducing onsite construction For housing developers, private Continued Integration craned into place in three days. Agency, were constructed offsite and Housing by VancouverAffordable transitional housing development the 52 units of M. Mitchell Place, a erected in 10 days. In Vancouver, its sister company, Factory OS, was Holliday Development and built by a 110-unit apartment project led by is crane them into place. In Oakland, they arrive onsite, all that is left to do concurrently with sitework, when are built inside a factory, oftentimes traditional onsite builds.” completed 20%–50% faster than projects “have consistently been record of cost savings, more recent modular projects had a mixed track Company found that although early A 2019 report from McKinsey & finished modules—can be assembled. components—in some cases fully with which prefabricated building is the speed perspective, developers’ offsite construction, from a of The primary financial benefit Time Savings For this reason, builders and For and this reason, builders Because building components

27 www.construction.com

structures to be built.” it difficult for prefab and modular the price up and making are driving party certification. Duplicate efforts and they’re not able to accept our third- says, “or they don’t have aprogram different codes and programs,” she districts, cities and towns all have citing California as aleader. “States, offsite construction, Kossayda says, codes to better fit the realities of a sense of uncertainty. leading architecture firms, have fueled capital funding and acquired several raised more than $1 billion in venture of startups such as Katerra, which has with concerns over the rapid growth its factory in Lathrop, Calif., combined would be laying off 170 employees at based modular housing developer, The news that RAD Urban, an Oakland- continued growth, challenges remain. Although the industry is poised for Hurdles toGrowth leading to better industry cohesion.” for ahomebuilding operating system, Homes. “We hope to establish the basis Bensonwood, the owner of Unity the communications director for those buildings,” says Sarah Kossayda, supply the materials and parts for and and build, and those that make between the companies that design “We are trying to connect the dots components for factory-built housing. performance assemblies and with Unity Homes to develop higher- materials manufacturer, partnered In 2018, CertainTeed, a leading acquisitions or strategic partnerships. fabrication and construction through States also need to amend building States also need to amend building

n SmartMarket Report SmartMarket PREFABRICATION AND MODULAR CONSTRUCTION 2020 Sidebar: N of the landscape. landscape. the of view a clearer get to helpful be may it horizon, the over coming changes for ready get to wanting manufacturers and teams delivery project developers, For on. going really what’s about arises confusion where point the to loosely, them use often pundits) media and practitioners industry (researchers, consultants, conversation in the participants and wide, is terms three those of each But it. do to technologies the of one is prefabrication and construction industry as a whole a whole as industry construction disruption. of talk the generating that’s construction modular it’s results, great achieve can prefabrication While Project). Village Urban IKEA-sponsored the example, (for parts flat-packed panelized, of kit or a report) this in profiled Flats, and Union Connections Coliseum Bowery, incitizenM used ones the (like volumetric, be may Modules site. to transported then are which modules, or components building producing process, based a factory- is construction modular construction, offsite of types are both While “modular construction.” “prefabrication” and between distinguishes this report experts, matter subject our from input on First, prefabrication. Based Coming toTerms of construction. business tothe standard adisruption be will shadowed about whether also often by is concerns they construction and modular prefabrication of for the benefits Enthusiasm Disruption Define SmartMarket Report SmartMarket Second, construction. It isn’t the the isn’t It construction. Second,

Industry Disruption ripe for disruption, disruption, for ripe is construction that view of point common a it’s owadays

Dodge Data &Analytics Data Dodge performance that incumbents’ incumbents’ that performance the delivering upmarket, move [and] then segments… market overlooked targeting successfully by begin disruptive prove that Entrants businesses… incumbent established challenge successfully to able is resources fewer with company a smaller whereby University, encapsulates the idea: business administration at Harvard Clayton Christensen, professor of originator of the business usage, more specific. Here’s how the business, the word means something in the way things are done. But in a disruption is a major disturbance a disruption? In day-to-day usage, constitute and hospitality sectors modular construction in the housing exclusively. almost construction hospitality and/or housing at aimed a few—are name Guerdon—to and Bensonwood (with Unity Homes), Clayton, as such builders volumetric established of upskilling and/or upscaling the and modular; to pivots it as Skender firm construction legacy of integration vertical the Structure; BONE and Kasita Z Modular,Robotics, Blokable, Modular, Blueprint Stack O/S, Factory such as Katerra,startups Entekra, of advent The timeline.) own its on story aseparate that’s but types, building of a range to adaptable are systems (Panel-based innovation. particular this for ripe now are that sectors hospitality and housing the mainly It’s affected. that’s “Disruption” describes a process So does—or will—the rise of

28 www.construction.com

to develop. needs industry the innovations, radical or sustaining disruptive, of talk meaningful be can there Before industry. established an yet not is US in the construction modular that to foster competitiveness—means companies of mass acritical and oriented processes, production manufacturing-based and factory- and improvement, efficiency productivity, on a focus as such factors— qualifying of presence minimal or absence the that case the make they and sector, business or amarket and “industry” an between in distinguishing utility see + Construction, Design of School University’s State Washington Schoolof Architecture. professor at Northeastern University’s industry expert Ivan Rupnik, associate sector, certainly not in the US,” says yet see any in this major ‘disruptions’ described as a disruption. “We don’t modular construction isn’t accurately happening now with the rise of completely replace existing ones. new products or processes that and radical innovations that introduce improvements on previous practice, innovations incremental that make innovations include sustaining occurred. has volume, disruption in offerings entrants’ the adopting start customers mainstream When success. early their drove that advantages the preserving while require, customers mainstream He and Ryan Smith, director of of director Smith, Ryan and He So in business terms, what’s to disruptive Alternatives

PREFABRICATION AND MODULAR CONSTRUCTION 2020 Sidebar:

Ryan E. Smith and John D. Quale, Offsite Architecture: Constructing the Future, Routledge, 2017. Routledge, Future, the Constructing Architecture: Offsite Quale, D. John and Smith E. Ryan publications: https://www.modx.network/media ModX Building InstituteModular https://www.modular.org/HtmlPage.aspx?name=foundation_resources publications: National Institute of Building Sciences Offsite Construction Council: https://www.nibs.org/page/oscc_resources construction. conventional with continued had team the if than more project the costing up end will than the design development stage later or at modular to commitment a making that suggests research is, it when even go; and, to way best the always isn’t It place. first in the towhether use modular construction on decision the includes That to. used they’re than earlier much decisions making and assembly, and transportation of account taking customization, mass facilitate to standardization for opportunities for looking construction: modular for decisions their optimize to need will teams Design requires. systems modular procuring that knowledge and skills new the develop to need will contractors general and teams design owners, sector. market in a volatile costs plant fixed of risks the manage and markets to connect products, their to improvements iterative make technology, embrace development, and in research unions—invest and investors researchers, regulators, relationships—with cultivate to need They’ll competence. and capacity their upgrade and ecosystem, their understand to need will Fabricators example. for practices, labor new and leanmanagement, practices operational data, improvement, incremental standardization, management, chain supply integration, vertical introducing: now are companies renewing and new that practices include will industry an as Development Industry an Developing Across the entire supply chain, chain, supply entire the Across

Industry Disruption

Dod CONTINUED ge Data & Analytics Data ge in-time delivery. in-time just- or staging, near-site include to process construction the of redesign a require assembly and setting panel and Module example. for a factory, in executed a contract of 70% to 65% see to expect can contractors general change: will Scope norm. the become to need will exception, the still now teams, delivery and design project of Integration process. a conventional in than sooner needed are fabrication superstructure of start the support to draws financing: to access earlier municipalities across themunicipalities country. across major with systems its pre-certify to seeking is Katerra, manufacturer, modular one least at issue, this of To in front out get jurisdiction. having authority the of behalf on act to inspector a third-party hire to need may Projects compound. will complexities jurisdictions, inseparate located are jobsite the and manufacturer the When board. on brought be to need will mischaracterizes what, in business inbusiness what, mischaracterizes it But dramatic. fittingly is word The a“disruption.” as change widespread lifting. the doing a robot with modules, 60-ft.-long making factories supplying started they installers, and distributors to products selling of instead tomorrow, if change they’d what considering and lines product their at looking They’re Rupnik. says seriously, this taking are companies product building large the All change. to expected be Permitting and code officials officials code and Permitting on depend will delivery Project Even building supplies can can supplies building Even It may be tempting to refer to this this to refer to tempting be may It

29 www.construction.com

careful way of explaining it.” explaining of way careful and “a judicious calls more Smith what by served better be may they evolvinghospitality sectors’ terrain, and housing the navigating for map a develop companies As them. to available strategies the considering are that businesses misdirect may it and happening, really is terms,

SmartMarket Report SmartMarket n PREFABRICATION AND MODULAR CONSTRUCTION 2020 Sidebar: T may suggest ways the US. toencourage in use broader in markets other what globallyUnderstanding it led toflourish has the US. not in has but wide use seen it still construction, demonstrate ofreport modular benefits the this of The findings Construction on Modular Perspective A Global Tortoises and Hares the country’s rapidly developing the country’s export to underway now initiative an with concrete), in precast (mainly modular of growth the speeding is Authority Construction and Building government’s productivity-focused the from pressure Singapore, In sector. hospitality international the to exporting companies construction modular produce to cross-pollinated have industries furniture and steel thriving Poland, In annually. built homes multifamily and single new million-odd the of 20% some for and volumetric modules account In Japan, panelized construction. housing all of 80% than more for accounts now it where point the to methods conventional displaced construction panelized In Sweden, industries. viable into manufacturing housing modular developed have market. housing America’s 4% of than less for accounts Todayuptake. construction modular sector private of alack to 1975 due in discontinued was it through; break infact not did Breakthrough Operation funding, public significant Despite construction. of modular potential commercial the for project a demonstration Breakthrough, Operation initiated Defense, of Department the with collaboration (HUD), in Development Urban and Housing of Department the 1960s, SmartMarket Report SmartMarket In the meantime, other countries

A Global Perspective on Construction Modular pioneer. Back in the inthe Back pioneer. construction modular a once was US the but today, it of sign little here’s

Dodge Data &Analytics Data Dodge demand; a consumer preference for for preference a consumer demand; in spike asudden with industry, housing a large determinants: main four of afunction be to construction modular of uptake the Steinhardt and Karen Manley found Dale researchers by Australian markets. lagging in those growth for potential strong suggesting Coast, West America’s Kingdom,and United the Australia, are quadrant in that present Also quadrant. right top the in Japan and Sweden shows axes Y Xand along predictors primary two the Mapping factor.) arching over- an as context regulatory with of quality, perceptions consumer and constraints site include factors materials, while demand-side to access and logistics chain supply include factors supply-side (Additional indicators. significant most the as labor construction of cost high and scarcity relative the and demand housing unmet identifies report a 2019 McKinsey construction, modular of viability the to contributing factors Among Notand Others? Some Countries in Off Taken Modular Why Has astounding. of short nothing is sector inthis China’smodular. growth including technology, construction in innovation support to million US$128 injecting budget recent most the with projects, works public its in modular piloting is Kong Hong of government The India. to expertise A six-country analysis in2016 analysis A six-country

30 www.construction.com automated that they haven’t changed haven’t changed they that automated “so Rupnik, says world, in the market automated most the now is Japan America’s, as old as nearly industry a construction modular With the Leaders From Learning can learn from.” from.” learn can US the that in ways things innovative very very, doing are that countries the be to continue Poland and then Japan,competition, Sweden with in societies market, afree within working and sustainability, about talking we’re if “but Architecture, of School University’s Northeastern Rupnik, associate professor at Ivan says speed,” impressive and numbers impressive is Singapore and in China seen we’ve “What insights. productive most the yield may in Poland, growth recent the and Sweden, and in Japan construction of modular success enduring the on A focus runners. front the from learn to opportunity lagging. is US the clear it’s so, Even conclusions. robust support to insufficient still is internationally uptake prefabrication on data available say authors the interest, industry and academic active of years many Despite data: better for need the highlights also report The sector. building multiresidential alarge and dwellings; prefabricated promote that policies or ownership state housing; renovated than rather new The upside of falling behind is the the is behind falling of upside The

PREFABRICATION AND MODULAR CONSTRUCTION 2020 Sidebar:

Smith, Ryan E. & Rupnik, Ivan (2018) 5 in 5 Modular Growth Initiative: Research Roadmap Recommendations; Modular Building Institute, p. 13. p. Institute, Building Modular Recommendations; Roadmap Research Initiative: Growth 126-135. pp. 5Modular 5in 22, (2018) Society, Ivan and Cities &Rupnik, E. Ryan Sustainable Smith, context. country of role –the housing prefabricated of Adoption (2016) Karen &Manley, A. Dale Steinhardt, Kingdom. United State, United Netherlands, Germany, Sweden, Japan, Products. to Projects From Construction: Modular (2019) al. et Nick Bertram, 10%. 9or to closer it bring would in them Adding buildings. relocatable excludes number That construction. frame concrete with competes method the in height, stories eight surpassing now housing modular volumetric modules. With Sweden’s light-wood volumetric into panels turning for process a value-added with changes) funding and market regulatory, of context (in the 1990s in the experimenting began manufacturers modular major country’s the construction, in panelized started Having modular. using hospitality) and/or (multifamily buildings taller of percentage double-digit in its unique is It share. market and sustainability automation, of degree in its exceptional is indelivery. predictability or in fabrication standardization sacrificing without satisfaction client increased and customization of degree ahigh facilitate sale) of point at (including architects for role expanded an and software proprietary that, Supporting in quality. advantage its marketing to shifted soon but speed, and affordability emphasized industry sector. the to specific system inspection and a regulatory is growth that in factor significant most single the Arguably growing. is modular volumetric predominate, systems panelized while And uncommon. not the country, although light wood is in used material primary the is steel gauge Light Europeans.” the even of ahead years 20 probably still it’s and years, 20 for equipment their Sweden’s vertically integrated integrated vertically Sweden’s industry modular Sweden’s Japan’s modular days, early its In

A Global Perspective on Construction Modular Dod ge Data & Analytics Data ge That’s a major factor in public sector sector in public factor amajor That’s says. he practice,” entire in the involved much very are who people all labour, “it’s temporary or unskilled of instead facilities, front-runners’ global In Rupnik. says board,” the across valued are know-how and craft that way the treated, is labor that way “the culture: corporate to pertains aspects significant most the of one experience, countries’ these of aspects many from learn can hospitality and in housing actors other and US haven’t.” We in the hasn’t. Singapore hasn’t. “China Rupnik. says specifications,” sector hospitality to delivering that’s country only the be to continues “Poland US. the and Germany Kingdom, United the France, in Holland, developments hotel to units shipped far so have they them, sector. Between hospitality the supplying on focused entirely almost volumetric fabricators export-based competing two into industry— steel a major China) and (after world in the industry furniture largest strengths—the second unique its translating for notable is It scene. construction modular pipe. the down coming regulations environmental stricter and also anticipates consumers with successful proven technology, a strategy that has a green as construction modular market They fabrication. as well as development and indesign degrees varying to participate companies While American manufacturers manufacturers American While the on arrival a recent is Poland

31 www.construction.com not looking at them enough.” enough.” them at looking not We are homework. our done not have US in the we “But Rupnik. says ‘70s,” the since us from learning been They’ve them.’ from learn to need we things; neat some done ‘America’s insaying, humble more much are Poland and Japan “Sweden, others. of success the from learn to humility takes it But effort. of a lot themselves and potentiallycounterparts, save international their of successes the from deal a great learn can in this country.” construction with associate don’t we something And like. politicians something “That’s Rupnik. says jobs,” secure quality, high- produces that industry an as perceived “It’s countries. leading in construction offsite for support America’s modular manufacturers America’s modular manufacturers

SmartMarket Report SmartMarket n Data:­Modular Construction Trends

Use of Specific Types of Modular Construction

Frequency of Using Panelized Percentage of Projects Using Panelized Modular

DATA Modular Construction Construction The chart at upper right shows the percentage of projects (Past 3 Years and Forecast for Next 3 Years)

on which respondents, by company-type, say some type Dodge Data & Analytics, 2020 of panelized modular construction was used over the past three years and the percentage on which they believe it 50% or More of Projects will be used during the next three years. 25% to 49% of Projects ■ Design firms report the greatest current use,and while Less Than 25% of Projects the overall number predicting future usage does not increase, the percentage of projects using panelized 84% 85% 80% 83% modular construction shows growth. 76% 20% 68% ■ Trade contractors show the most future growth, 23% 27% 15% 15% 10% although their overall usage is lower than the other 19% 19% 8% 15% groups because not all of them do work where panelized 19% 22% modular construction applies.

Types of Panelized Modular 42% 36% 46% 44% 50% 46% Construction Being Used The respondents reporting some level of panelized Architects/ Architects/ GCs/CMs GCs/CMs Trades Trades modular construction usage were asked to identify, from Engineers Engineers (Past 3 (Next 3 (Past 3 (Next 3 PREFABRICATION AND MODULAR CONSTRUCTION 2020 MODULAR CONSTRUCTION AND PREFABRICATION a list of four specific types, which ones they have had (Past 3 (Next 3 Years) Years) Years) Years) Years) Years) experience with on their projects over the past three years. The chart at lower right shows that breakdown. Percentage of Projects Using Types of ■ Wall modules are the most frequent among the four Panelized Modular Construction (Past 3 Years) types of panelized modular construction, especially by Dodge Data & Analytics, 2020 the architects who participated in this part of the survey (95%), who report higher usage than the engineers. Architects/Engineers GCs/CMs Trades ■ High proportions of both design firms (69%) and GCs/ Wall Modules CMs (77%) report using structural insulated panels over TypsMOD01 92% the past three years. It makes sense that fewer trade contractors (45%) report use because many do not work 87% on the building envelope. 82% ■ Nearly half of design firms and GCs/CMs have utilized Structural Insulated Panels modular roof panels. 69% ■ The relatively high percentage (47%) of design firms using modular floor panels may generate a future 77% uptick among contractors (currently at 32%) because 45% they will ultimately be implementing the design Roof Panels solutions that involve the modular floors. 46% 47% 21%

Floor Panels 47% 32% 18%

SmartMarket Report Dodge Data & Analytics 32 www.construction.com

TypsMOD (2) PREFABRICATION AND MODULAR CONSTRUCTION 2020 DATA

■ ■ ■ ■ ■ ■ at lower right shows that breakdown that shows right lower at chart The years. three past the over projects their on with experience had have they ones which three, of alist from identify, to asked were modular volumetric full of usage of level some reporting modular, respondents panelized of types specific the of evaluation frequency the to Similar Used Being Construction Volumetric of Full Types Modular strong. are predictions future modular, but panelized than used frequently less is Today, volumetric full Modular Construction Volumetric Full of Using Frequency Construction Modular of Specific Use of Types Trends Construction Modular

anticipating no involvement. involvement. no anticipating 13% only and projects, upcoming their of more or half on volumetric full see will they (24%) predicting quarter design firms and GCs/CMs. GCs/CMs. and firms design (46%), contractors by trade used commonly most are transported onsite. joined modules 3D as frequent as not site assembly is consistent across company-types, and trades. GCs/CMs firms, design by reported percentages similar types, three the among used frequently most the 75%). to (59% years. three past the (24%) over them of aquarter than less with compared years, three next the over volumetric full with projects) their of more or (25% involvement significant 3D modules slotted into a structure that can be be can that a structure into slotted modules 3D for system construction a flat-packed with Experience are onsite together joined be to meant modules 3D users total in rise projected biggest the show Trades use, future greatest the forecast GCs/CMs forecast (36%) firms design of third one Over and least frequently cited by both both by cited frequently least and Dod ge Data & Analytics Data ge with one one with

with with but but

33

(Past 3Years)(Past Volumetric Construction Modules/Full Types 3D of Using Projects of Percentage 3Years) Next for 3Years(Past Forecast and Full Volumetric Construction Modules/ 3D Using Projects of Percentage Structure ThatCanBeT 3D ModulesSlottedIntoa System forSiteAssembly A Flat-PackedConstruction 3D ModulesBuilttoBeJoinedT D Ty D Ty 48% Ye (Past 3 Engineers Architects/ odge Data&Analytics,2020 12% 12% odge Data 72% CONTINUED ars) psMOD (4) 25% to49%ofProjects Less Than25%ofProjects 50% orMoreofProjects Architects/Engineers www.construction.com p sMOD (5) & Analytics, 2020 Ye (Next 3 Engineers Architects/ 13% 45% 81% 23% ars) 32% ransported Years) (Past 3 GCs/CMs 17% 42% 20% 79% 40% GCs/CMs

43% 44% ogether Onsite 46% 47% Years) (Next 3 GCs/CMs 53% 10% 24% 87% T rades SmartMarket Report SmartMarket Years) (Past 3 Trades 59% 13% 40% 6% 81% 19% (Next Trades Years) 46% 10% 75% 86% 87% 3 PREFABRICATION AND MODULAR CONSTRUCTION 2020 DATA ■ ■ ■ ■ ■ of their projects. projects. their of 25% than less on place taken has that say most although years, three past the over etc.) rooms, exam rooms, utility pods, bathroom (e.g., units building turnkey made factory- of use some report surveyed company-types the of 83%) and 68% between (ranging quarters three About Turnkey Modular Building Units Factory-made of Using Frequency Construction Modular of Specific Use of Types modular structures. relocatable of use predicted and reported their sites.” building different to transported and times multiple repurposed or reused be to “designed are that ones as structures modular relocatable defines Institute Building Modular the construction, modular permanent from them To distinguish Modular Structures Relocatable of Using Frequency Modular Construction Trends Construction Modular SmartMarket Report SmartMarket

levels are expected to remain the same. the remain to expected are levels implementation higher The decline. will projects) their (25% of implementation of level lowest the at companies the only Interestingly, forward. going a reduction show years. three next in the so doing be will they believe (79%) more modular, and relocatable three years. years. three usage, years. three next the in projects their of a quarter least at on units building willtypes be implementing factory-made turnkey that average a predicted generating level. that at 10% currently only with compared years, three next in the projects their of more or 25% on them use will they 31%with predicting (71%) leaders current the are GCs/CMs of level some report firms design (66%) of Two thirds usage, more plan also GCs/CMs and firms Design usage, in growth most the forecast Trade contractors By contrast, There is notable variety across company types in in types company across variety notable is There but predicted growth only increases to 69% in in 69% to increases only growth predicted but trade contractors are least active now and and now active least are contractors trade

Dodge Data &Analytics Data Dodge 29% of all company- all of 29% in using in using

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(Past 3 Years and Forecast for Next 3Years) Next for 3Years(Past Forecast and Modular Structures Percentage of Projects Using Relocatable 3Years) Next for 3Years(Past Forecast and Turnkey Units Building Factory-made Using Projects of Percentage Ty Ty D D 52% 10% 55% Ye (Past 3 Engineers Architects/ Ye (Past 3 Engineers Architects/ 66% odge Data 68% odge Data 4% 6% 7% CONTINUED ars) ars) psMOD (6) psMOD (3) 25% to49%ofProjects Less Than25%ofProjects 25% to49%ofProjects 50% orMoreofProjects Less Than25%ofProjects 50% orMoreofProjects www.construction.com & Analytics, 2020 & Analytics, 2020 78% 18% Ye (Next 3 Engineers Architects/ 69% Ye (Next 3 Engineers Architects/ 51% 14% 52% 4% 8% ars) ars) Years) (Past 3 GCs/CMs Years) (Past 3 GCs/CMs 19% 72% 47% 59% 71% 5% 5% 8% Years) (Next 3 GCs/CMs Years) (Next 3 GCs/CMs 49% 54% 22% 79% 22% 83% 8% 7% 61% 15% Years) (Past 3 Trades 23% Years) (Past 3 Trades 23% 68% 58% 2% 8% 15% 23% 15% 53% 10% (Next Trades Years) (Next Trades Years) 50% 21% 81% 3 3 PREFABRICATION AND MODULAR CONSTRUCTION 2020 DATA

■ ■ ■ identified by architects and engineers. and architects by identified types 10 top building the shows right at chart The Perspectives Engineers’ and Architects’ experience. historical their with types building predicted frequently 10 top most their company, of type each for compare, report the of section in this charts The years. three next in the frequency high see will believe they those also and years, three last the over applied been frequently has construction modular which on those identify to asked and types 14 of building a list shown were inquiry of line modular in the respondents survey market, this of dynamics the To examine buildings. of types numerous on construction modular permanent for uses finding are Practitioners Frequently Used Modular Construction Is Most Building Types Where Permanent completion. after in place remain to meant are that sections modular deliverable premanufactured from buildings creating of process the to refers construction modular permanent structures, modular relocatable from Distinct Permanent Construction Modular FrequentMost Building Types for of Use Trends Construction Modular

predicting high future frequency. frequency. future high predicting 25% than more garner none although levels, past over buildings. public on degree a smaller to modular on hotels and motels, facilities healthcare and (see page 8).prefabrication for view future pessimistic their with sharply contrasts This forward. going projects multifamily on modular The other six building types each show a solid increase increase a solid show each types building six other The permanent of use frequent Fewer, however, predict of role the about positive extremely are firms Design Dod ge Data & Analytics Data ge

CONTINUED

35

Compared With History of Last 3Years) Last of History With Compared Construction Building Types for Using Permanent Modular TopArchitects/Engineers’ 10 Most Frequent Healthcare Facilities BldgsPerMOD (1 Public Buildings Of ces Low-Rise(1-4Stories) Schools K-12 Hotels andMotels Multifamily D Manufacturing Buildings Retail StoresandShoppingCenters Commercial W College BuildingsandDormitories odge Data&Analytics,2020 www.construction.com Architects/Engineers (Last3Ye Architects/Engineers (Next3Ye 11 12 % 14 14 14 % arehouses 16 16 % % % 17 17 ) % % 19 % 19 19 (Forecast for Next 3Years Next for (Forecast % 20% % % % 22% 24% 24%

25% ars) ars) 34% SmartMarket Report SmartMarket 43% 51% PREFABRICATION AND MODULAR CONSTRUCTION 2020 DATA ■ ■ ■ ■ ■ differences in their perspectives. perspectives. intheir differences interesting are 14, of there list the from 10 buildings years. three last the over frequency ahigh experienced they say many how with each chose that percentage the compares right at chart The years. three next inthe construction modular permanent of frequency highest the have will believe they 14) of (out that types 10 the building selected GCs/CMs Perspectives Managers’ Construction and Contractors’ General Most Frequent Building Types Construction Building Modular Permanent for of Use Frequent Most Trends Construction Modular SmartMarket Report SmartMarket

making a strong growth prediction (51%). prediction growth astrong making firms design of percentage high the with compared 34%), from (to 32% projects multifamily for modular approaches. innovative of use the for focus a be should and industry construction US the of part a significant represents it but market, inthat projects for funding public available about groups both by activity. modular permanent less see to likely are buildings public that both forecasted for significant upticks. respectively). 34%, and (37% equal nearly is frequency future high predicting group each of proportion activity. less predict who firms design and modular, permanent in increase a strong forecast who GCs/CMs, between dynamic predict strong future use. which only 14%of firms, design with contrasts starkly (22%) and years three last the over frequency high experiencing report who number the twice nearly is modular. permanent of frequency high predicting GCs/CMs foresee a slight pullback in permanent permanent in pullback aslight foresee GCs/CMs firms design of outlook the with agree GCs/CMs K-12) and ed are higher (both buildings Educational The hotel/motel market shows contrasting another 41% with GCs/CMs, for list the top facilities Healthcare While GCs/CMs and design firms selected the same same the selected firms design and GCs/CMs While

This may be due to general concerns concerns general to due be may This Interestingly, though, the Dodge Data &Analytics Data Dodge This This

36

Compared With History of Last 3Years) Last of History With Compared Construction Types for Using Permanent Modular Top Building 10 Frequent GCs/CMs’ Most BldgsPerMOD (2 Multifamily College BuildingsandDormitories Hotels andMotels Healthcare Facilities D Public Buildings Manufacturing Buildings Retail StoresandShoppingCenters Commercial W Of ces Low-Rise(1-4Stories) Schools K-12 odge Data&Analytics,2020 GCs/CMs (Last3Ye GCs/CMs (Next3Ye www.construction.com arehouses ) 14 15 15 (Forecast for Next 3Years Next for (Forecast ars) ars) % % % 17 17 % % 19 22% 20% % 22% 22% 24% 24% 24% 29% 31% 32% 32%

34% CONTINUED 37% 41% PREFABRICATION AND MODULAR CONSTRUCTION 2020 DATA

■ ■ ■ ■ contrast with them, sometimes quite significantly. also but ways in several companies of types other years. three last the over them with frequency high experienced many how with compared markets growth future 10 high top as overall their of each designating percentages the shows right at chart The years. three next the over construction modular permanent feature frequently most will believe they types building which chose also Trade contractors Perspective Trade Contractors’ Specialty Types Construction Building Modular Permanent Frequent for Use of Most Trends Construction Modular

trade contractors. trade contractors. of more or 50% from projections growth frequency list, the top hotels/motels half (46%) having seen high activity in recent years. years. inrecent activity high seen having (46%) half nearly of in spite optimistic feeling a quarter only with on the outlook for modular permanent in multifamily, activity. frequent predicting 10, top their among buildings office high-rise include to company-type only the are but market, office low-rise the in growth forecasting (17% 31%). to experience past of level ahigh citing those from outlook doubling for public buildings, almost positive their in alone are they years, three next the in modular permanent more see should K-12 projects Interestingly, trade contractors agree with design firms firms design with agree contractors trade Interestingly, in others the with alignment in are Trade contractors that view unanimous the join contractors trade While higher facilities, Healthcare ed buildings and Trade contractors’ forecasts align with those of the the of those with align forecasts Trade contractors’ and all earned high high earned all and with over a quarter (27%) (27%) a quarter over with Dod ge Data & Analytics Data ge

37

Compared With History of Last 3Years) Last of History With Compared 3Years Next for Types (Forecast Building Top 10 Frequent Trade Most Contractors’ BldgsPerMOD (3 Schools K-12 Hotels andMotels College BuildingsandDormitories Healthcare Facilities D Commercial W Multifamily Of ces Low-Rise(1-4Stories) Of ces High-Rise(5+Stories) Manufacturing Buildings Public Buildings odge Data&Analytics,2020 www.construction.com T T rades (Last3Y rades (Next3Y 13 arehouses % 17 ears) ears) ) % 15 23% 25% 25% 23% %

27% 25% 27% 27% 27% 31% 31% 31% 35%

CONTINUED 46% SmartMarket Report SmartMarket 50% 52% 56% PREFABRICATION AND MODULAR CONSTRUCTION 2020 DATA ■ ■ ■ ■ ■ modular construction. construction. modular from years three past the over experiencing report respondents that improvement performance schedule of percentage the shows right upper at chart The Performance Schedule performance. and cost on schedule construction modular of impact positive the examines report the of page This Construction Construction and Cost Performance From Modular Percentages Reporting Improved Schedule gains. schedule degree, a lesser to also, and construction modular from performance cost improved to strongly correlates use BIM below, matrix inthe shown As Improvements Enhances Use BIM construction. modular from years three past the over experiencing report respondents that improvement performance cost of percentage the shows right lower at chart The Performance Cost Schedule and Cost Performance Performance Cost and Schedule of on Modular Construction Impact Trends Construction Modular SmartMarket Report SmartMarket

Performance Cost Improved Reporting Percentage Performance ScheduleImproved Reporting Percentage 60% citing better than 5% schedule gains. 5%schedule than better citing 60% percentages citing more than 10% gains. 10% gains. than more citing percentages impact cost about (47%) positive are impact. budget 5% positive than better citing (68%) thirds (91%), two over with performance cost GCs/CMs. or firms design than overall enthusiastic performance, schedule in improvement (over 10% improvement). (over 10% improvement). positive impact, Almost half of trade contractors (46%) and design firms firms design (46%) and contractors trade of half Almost improved about enthusiastic more even are GCs/CMs report contractors trade (36%) of third one over While Nearly two thirds (65%) of design firms agree on its its on agree firms (65%) design of thirds two Nearly impact positive report (88%) GCs/CMs all Almost

(by Level of BIM Usage) BIM of (by Level with 20% reporting the highest level level highest the reporting 20% with Use BIM Not Do That Companies 46% 21%

Projects of 50% Than Less on BIM Use That Companies 46% 44% Dodge Data &Analytics Data Dodge with the similar similar the with they are less they are less Projects of More or 50% on BIM Use That Companies

46% 59%

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Each of Three Levels of Improvement) of Levels Three of Each Reporting Budget Performance (Percentages Project on Construction Modular of Impact Improvement) of Levels Three of Each Schedule Performance Reporting (Percentages Project on Construction Modular of Impact D D Sched Cost Bens(2) Engineers Architects/ Sched CostBens(1) Engineers Architects/ odge Data odge Data Decreased 6%–10% Decreased byMoreThan10% Decreased by5%orLess Decreased 6%–10% Decreased byMoreThan10% Decreased by5%orLess 19% 13% 20% 47% 20% www.construction.com 32% 65% 8% & Analytics, 2020 & Analytics, 2020 C/M Trades GCs/CMs C/M Trades GCs/CMs 28% 20% 40% 88% 20% 23% 91% 48% 36% 18% 18% 18% 46% 20% 8% PREFABRICATION AND MODULAR CONSTRUCTION 2020 DATA

■ ■ ■ ■ ■ ■ firms in the survey. survey. the in firms design from responses the shows right lower at chart The Architects/Engineers level of contribution. positive high very or high amedium, making either as each rating respondents of percentage the shows right upper at chart The delivery. project of aspects specific other seven on construction modular of impact the examined also survey the report, in this earlier prefabrication with shown As Benefits on Seven Specific of Modular Construction Impact Trends Construction Modular medium, high and very high rating levels. levels. rating high very and high medium, their of sum the reflects order the Trades). each, In CMs, GCs/ (Architects/Engineers, groups respondent main three the from findings the show separately report the of section in this charts other the perspectives, their between commonalities and To contrasts examine BYRESPONSES COMPANY-TYPE

prefabrication (66%).prefabrication to rating safety apositive gave than percentage higher a significantly is this Notably aspect. in that involved directly less are firms design though even numbers are similar (86% and 85%, respectively). respectively). 85%, and (86% similar are numbers (20%),prefabrication with compared group this (23%) from votes 89%) acknowledgement 90% over garner all predictability achievement. their to construction modular of contribution the citing respondents of 83% than types. company all across list the top certainty Most (81%) cite improved safety performance, safety (81%) improved Most cite impact high very more earns waste Reduced Improved and productivity client satisfaction (both cost and certainty schedule quality, Improved fewer no with well, as strongly rate benefits other The schedule and quality productivity, to Improvements follow close behind. behind. close follow although the total positive although the positive total Dod ge Data & Analytics Data ge

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High or Very High Contribution for Each Factor) Factor) Each for Contribution High or Very High Construction of Impact Modular Architects/Engineers: Factor) Each for Contribution High or Very High Medium, Reporting (Percentages Construction Modular of Impact Other Bens1 Other Bens(2) Improved SafetyPerformance Reduced W Increased ClientSatisfaction Improved Productivity Improved CostPredictability Increased ScheduleCertainty Improved Quality D Improved Productivity D Improved CostPredictability Increased ScheduleCertainty Improved Quality Reduced W Improved SafetyPerformance Increased ClientSatisfaction odge Data odge Data&Analytics,2020 14 23% 14 14 14 14 16 Very High www.construction.com % % % % % % & Analytics, 2020 aste GeneratedbyConstruction aste GeneratedbyConstruction 31% High (Percentages Reporting Medium, Medium, Reporting (Percentages 43% 46% 42% 40% 43% 41%

Medium 36% 35% 32% 34% 35% 31% 22% SmartMarket Report SmartMarket 81% 83% 86% 86% 85% 89% 88% 89% 91% 90% 91% 90% 92% 93% PREFABRICATION AND MODULAR CONSTRUCTION 2020 DATA ■ ■ ■ positive enthusiasm for modular construction. enormous higher, or showing 80% all are right at shown GCs/CMs from responses the firms, design to Similar GCs/CMs Benefits on Seven Specific Construction Modular of Impact Trends Construction Modular SmartMarket Report SmartMarket

outstanding benefits. benefits. outstanding other six the to inrelation list the on last places it though 83%, respectively). and (90% prefabrication for ratings group’s this exceed user. any by expectation reasonable a as it establishing (99%) firmly acknowledgement The impact on client satisfaction (80%) is strong strong (80%) is satisfaction client on impact The (91%) predictability cost (92%) and certainty Schedule earns nearlyImproved unanimous productivity

Dodge Data &Analytics Data Dodge even even

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Improved Quality High Contribution for Each Factor) Each for Contribution High or Very High Medium, Reporting (Percentages Factors Key Seven on Performance Construction Modular of Impact GCs/CMs: Other Bens(3) Increased ClientSatisfaction Reduced W Improved CostPredictability Increased ScheduleCertainty Improved Productivity D Improved SafetyPerformance odge Data 17 20% 27% 20% 23% 17 27% Very High www.construction.com % % & Analytics, 2020 aste GeneratedbyConstruction 47% 38% High

33% 40% 40% CONTINUED 38% 45% Medium 25% 35% 25% 30% 23% 28% 27% 80% 85% 88% 90% 92% 91% 99% PREFABRICATION AND MODULAR CONSTRUCTION 2020 DATA

■ ■ ■ each performance factor. of achievement higher or medium reporting 80% than more with enthusiastic, equally are and respondents, other the with cases in most align Trade contractors Contractors Trade Benefits on Seven Specific Construction Modular of Impact Trends Construction Modular

first for designers. designers. for first (16%), firms by design granted were (29%) as votes impact high very many as twice the benefits provided. benefits the aspects, the of most for GCs/CMs or firms design of that than larger notably is scores impact high very giving trades of percentages most at risk for safety incidents. incidents. safety for risk at most laborers jobsite the provide that companies the are overall) 86% and high very (39% construction modular from safety improved for rating their strong prefabrication, Even more emphatic than their acknowledgement for for acknowledgement their than emphatic more Even place, In second prefabrication, for ratings their with case the is As is again especially meaningful because these these because meaningful especially again is improved garners almost quality indicating a true appreciation of of appreciation atrue indicating even though it ranked it it ranked it though even Dod ge Data & Analytics Data ge the the

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Very High Contribution for Each Factor) Each for Contribution High Very Factors on SevenConstruction Key Performance Modular of Impact Trade Contractors: Improved CostPredictability Improved SafetyPerformance Improved Quality Improved Productivity D Other Bens(4) Reduced W Increased ScheduleCertainty Increased ClientSatisfaction 16 39% odge Data 24% 27% 29% 27% 25% www.construction.com Very High % & Analytics, 2020 aste GeneratedbyConstruction (Percentages Reporting Medium, High or or High Medium, Reporting (Percentages High 43%

39% CONTINUED 35% 33% 37% 41%

29% Medium 22% 27% 22% 22% 27% 18 18 % SmartMarket Report SmartMarket % 81% 85% 85% 86% 86% 88% 89% PREFABRICATION AND MODULAR CONSTRUCTION 2020 DATA ■ ■ ■ third most frequent. most third or second first, either been having as method each cited who respondents all of percentages the by out broken responses the shows right upper at chart The years. three past the over construction modular involved that projects their on in use were methods delivery project various frequently how asked were Participants Method Delivery of Project Frequency not impede the use of modular construction. construction. modular of use the impede not should aproject on method bid a traditional that suggests This respondents. all across 20% of a total 12%, yielding and 8% between ranged contractors the construction, modular of use effective the hinders design-bid-build believe they say responding architects the of 37% Although construction. modular hinders design-bid-build traditional believe they if asked also were Participants CONSTRUCTION MODULAR HINDERING DESIGN-BID-BUILD respectively. 26%, and 30% are help” “significant citing percentages the where findings, prefabrication the than positive more even is This ratings. help” “significant earning respectively, 34%, and 45% with well, especially score both design-build and delivery project integrated construction. of modular use the enabled method that believe they much how asked were right lower at chart in the shown methods the of any Respondents with modular construction experience with Help Enable Modular Construction Methods Delivery toWhich Degree Modular Construction on of Delivery Project Models Impact Trends Construction Modular SmartMarket Report SmartMarket

about half of respondents. by frequent most three the among included each are traditional design-bid-build. design-bid-build. traditional to second is it where prefabrication, from different is traditional bid environment. environment. bid traditional a in even deployed be can construction modular that As with the prefabrication results, results, prefabrication the with As suggests design-bid-build of ranking second-place The method. frequent most the as ranks Design-build While all three methods garner very positive ratings, ratings, positive very garner methods three all While

Dodge Data &Analytics Data Dodge CM at Risk and IPD IPD and Risk at CM

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Integrated ProjectDelivery (By Company Type)(By Company Enabled by Project Delivery Method Was Construction Modular Which to Degree 3Years)(Last Was Used Construction Modular When Method Delivery Project of Frequency Proj Del(2 D Proj Del(1 T Design-build D Construction ManageratRisk Manager atRisk Construction 8% odge Data raditional Design-bid-build odge Data 31% 39% 15 50% Helped 13% 63% Helped Signicantly Second MostFrequent Third MostFrequent First MostFrequent www.construction.com % & Analytics, 2020 & Analytics, 2020 20% ) ) 18 % einbidIntegrated Design-build 20% 76% 20% 42% 34% 22% 29% 15 % Project Delivery 79% 14 34% 45% % PREFABRICATION AND MODULAR CONSTRUCTION 2020 DATA

■ ■ ■ percentages, by company-type, who selected each. each. selected who company-type, by percentages, the shows right at chart The projects. their on services construction modular provide to a supplier selecting about decision-making their on influential most the is factors six of which identify to asked were Participants Modular Construction Supplier of Selection a Factors Influencing of Suppliers Selection Modular Construction Trends Construction Modular

of a factor. a factor. of more become to expected be can price market, modular the enter providers more As evaluation. competitive for used readily more be can price prefabrication, for available suppliers more are there because where markets, two these between levels maturity different the reflect may This GCs/CMs. of 20% by influencer primary the as cited was and factors six of list same this on overall second ranked it where prefabrication a modular supplier. construction (15%). GCs/CMs than decisions supplier modular their on owners by influenced (31%)more firms far are prefabrication, for findings the Yet to similar 14%). with compared (27% contractors trade for true 12%). (average prefabrication for than value expertise. supplier, Price is not a highly influential factor for selection of of selection for factor influential a highly not is Price 24%) (average modular for greater far is input Owner prefabrication a selecting for findings the with As design firms and GCs/CMs most highly highly most GCs/CMs and firms design This with contrasts Dod ge Data & Analytics Data ge This is especially especially is This design

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Influential Factor) Influential Most the as Each Identifying (Percentage Builder/Manufacturer Modular a of Selection Influences Top That Factor Same ModularBuilder/ManufacturerforAllofOurProjects Have TheirOwnSetofCriteria Owner Preference Company WiththeBestExpertiseforProject D Company ClosesttotheProject(byDistance) Lowest Bidder 0% 0% Suplrs 0% odge Data&Analytics,2020 www.construction.com Architects/Engineers 3% 4% 4% 6% 6% 7% 8% 8% 12 % 15 % GCs/CMs

23% 27% T rades 31% SmartMarket Report SmartMarket 35% 39% PREFABRICATION AND MODULAR CONSTRUCTION 2020 DATA ■ ■ ■ ■ those findings. those addresses report the of part This construction). modular BIM-driven (i.e., activity that to specifically applied being is BIM how about asked were inquiry of line construction modular the for designated also companies the group, that Within 64). page Methodology, see engagement, BIM on information more (for projects their of percentage some least at on deployed being is BIM that say survey in this participated that (89%) companies the of Most future use (average 54% compared with 40%). 40%). with compared 54% (average use future forecasting percentages higher with but prefabrication model-driven for those with align findings The projects. their of more or 50% on construction modular for it using company-type, by users, BIM of percentages future and current the shows right lower at chart The Company-Type by Implementation High-Level years. three next the within levels those at be will who believe they andimplementation, the percentages of levels several at construction modular BIM-driven with engaged currently are who above described users BIM the of percentages the shows right upper at chart The for ModularBIM Construction Current and Future Implementation of BIM-Driven Modular Construction BIM-Driven Trends Construction Modular SmartMarket Report SmartMarket

implementation in the next three years. years. three next inthe implementation of level ahigh 10 of predicting (59%) out six nearly project teams. project on construction modular to approach integrated an drive to help should This contractors. with parity implementation will almost double, construction. modular for it leveraging 77% to 57% from dramatically, grow will projects their of aquarter least at on The number of design firms at a high level of of level high at a firms design of number The engaged, deeply most the are Trade contractors be will users (99%) BIM all virtually years three Within construction modular for BIM using percentage The

in the next three years. years. three next in the Dodge Data &Analytics Data Dodge reaching near near reaching

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Forecasted Over Next 3Years) Next Over Forecasted Construction inEngaged Model-Driven Modular Highly Are Who Users BIM of Percentage in 3Years) Levels Predicted (Comparing Current Implementation Levels With Model-Driven Modular Construction With Engaged Users BIM of Percentage BIM (2) BIM (1) D D 29% Engineers Architects/ urn 3Years Current odge Data odge Data 34% No (0%)Projects 41% 25% to50%ofProjects Less Than25%ofProjects Over 50%ofProjects 23% at HighorVery HighLevelintheNext3Years Planning toUseBIMforModularConstruction at HighorVery HighLevel Currently UsingBIMforModularConstruction 3% www.construction.com 50% & Analytics, 2020 & Analytics, 2020 55% 23% 22% 38% GCs/CMs (High/Very High Use, Current and and Current Use, High (High/Very 1% 53% 33% Trades 59% PREFABRICATION AND MODULAR CONSTRUCTION 2020 DATA

■ ■ ■ ■ percentage across all who responded. who all across percentage average the of inorder listed are They important. most three top their among be to each selected many how indicating percentages with company-type by out broken reasons eight leading the shows right at chart The it. with engaging are 10) of they why a list (from reasons three to up select to asked were construction modular for BIM of users current impact, its for expectations the and adoption its for drivers the To understand Modular Construction for BIM Reasons toUse BIM-Driven Modular Construction Trends Construction Modular and 30% of trades identify demand from GCs/CMs. GCs/CMs. from demand identify trades of 30% and owners from demand cite firms design of 36% example, For construction. modular in BIM-driven engaged becoming for reasons three top companies’ many among prominently appears member team project another by demand prefabrication, for findings the like Also CONSTRUCTION MODULAR FOR BIM OF USE MANDATING THE

process-related improvements. (20%), contractors trade with compared quality improved (34%)select firms design (35%). performance cost improving (39%) and rework onsite reducing and connection. alignment site to issues coordination limiting in production, coordinated are modules because construction modular firms. design with first construction. modular of benefit akey as it reinforcing Similar to the findings for prefabrication, many more more many prefabrication, for findings the to Similar is contractors trade to importance equal nearly Of and overall second ranks coordination Improved reported, widely most the is performance Schedule This is an integral benefit of of benefit integral an is This who are more attentive to to attentive more are who

Dod ge Data & Analytics Data ge

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Owner Demand Reduced OnsiteRework Improved Coordination Improved SchedulePerformance D Construction Modular for BIM Use to Reasons Important Most Architect orEngineerDemand Contractor/CM Demand Improved Quality Improved CostPerformance NA NA% BIM (3) odge Data&Analytics,2020 Architects/Engineers www.construction.com 17 17 % % 20% 20% 22% 22% 26% 26% 26% 26% GCs/CMs

30% 31% 35% 35% 36% 38% 39% T 41% 41% rades 47% SmartMarket Report SmartMarket 52% 54% PREFABRICATION AND MODULAR CONSTRUCTION 2020 DATA ■ ■ ■ ■ ■ ■ company-type ratings. company-type three the of average the of order in the and company, of type by divided influence, of levels high very or high either cite who percentages the shows right at chart The years. three last the over construction modular use to decision their on had factors seven of each that influence of level the rate to asked were Respondents Permanent Modular Construction (Last 3Years) (Last Construction Modular Permanent Top Factors Influenced Use of That Trends Construction Modular SmartMarket Report SmartMarket

benefits of modular construction. construction. ofmodular benefits the of aware become more as increase likely will and enable both. enable both. consciously that solutions design of development more to lead should and control cost on influence positive have a can construction and modular prefabrication both understand engineers and architects that indicating clearly well, as prefabrication for drivers group’s this with aligns finding (50%). This trades and (58%), performance cost improved by seeking motivated highly most delivery process. process. delivery project in the involved everyone about thinking are and construction offsite using of ramifications safety the of aware are professionals design that sign encouraging (52%), an is it trades or (59%) GCs/CMs motivator, overall. factor influential most competitive (60%), group. that for drivers top the as these identifying clearly companies, and (78%) productivity (51%), (59%) safety shortages of workforce influence 24). page (see prefabrication of drivers top the for findings similar influential factor overall, reinforcing Over one third (36%) of design firms cite safety as a as safety cite firms design (36%) of third one Over Interestingly, respondents all for driver a powerful is demand Owner remain to need the identifying in lead Trades the cite GCs/CMs of percentages larger Notably most the is productivity improve to desire The and while that is significantly less than either either than less significantly is that while and design firms report having been been having report firms design

and being competitive is the second second the is competitive being and outscoring both GCs/CMs (49%) (49%) GCs/CMs both outscoring than do the other types of of types other the do than Dodge Data &Analytics Data Dodge

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Safer W Improved CostPerformance Remaining Competitive Improved Productivity D of Influence) Level High or Very High Citing (Percentages 3Years Last in Construction Modular of Permanent Use Top Influencing Factors W Owner Demand Commercial A D odge Data&Analytics,2020 orkforce Shortages rvrs (2) Architects/Engineers www.construction.com orking Conditions 17 vailability ofPermanentModularComponents % 32% GCs/CMs 36% 41% 41% 42% 45% 47% 49% 50% 49% 50% T 51% rades 53% 53% 52% 58% 59% 60% 65%

78% PREFABRICATION AND MODULAR CONSTRUCTION 2020 DATA

■ ■ ■ ■ company-type scores for each factor. factor. each for scores company-type three the of averages the reflects order The influence. of level high very or a high predict company-type each of many how represent right at chart in the percentages The years. three next the over construction modular more drive to influential most the be will believe they benefits which identify to asked were participants expectations, future their To understand 3Years) (Next Construction Modular Permanent Top Positive Will That Drive Impacts More Trends Construction Modular and value related to these and other usage drivers. usage other and these to related value and awareness increased an show to likely are studies future impact, beneficial its of evidence generates industry the across construction modular with experience more as But overall. highly less scored they although contractors, than more firms design with resonated objectives) green achieving and inspection streamlined construction, (year-round drivers three other The

number acknowledging that for prefabrication (43%). (43%). prefabrication for that acknowledging number the with compared (56%) motivator future astrong as also differently,somewhat note it trade contractors But firms. design from demand high particularly quality project than those rating it as highly for prefabrication (3%). prefabrication for highly as it rating those than higher significantly still is (10%), percentage rating that (42%), concur. (31%) firms design of third one about and years, coming shortages on workforce with dealing impact positive construction’s modular on focused very be will they indicate trades and GCs/CMs of half almost rated highly as almost is cost construction decreasing driver future top the be that agree Safety scores strongly with GCs/CMs (36%) and trades trades (36%) and GCs/CMs with strongly scores Safety prefabrication, for findings the to similar also And results, prefabrication the echoing Again respondents all prefabrication, for findings the with As and even though fewer design firms give it a top top it a give firms design fewer though even and improving project schedule performance will improving will performance schedule project is third-ranked overall and is a a is and overall third-ranked is for modular construction and and construction modular for Dod ge Data & Analytics Data ge improving in the in the

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Very High Level of Influence) of Level High Very or High Forecasting Years (Percentages Three Permanent Modular Construction in Next of Use Influence Will Top That Factors Helps DealWithSkilledLaborShortages Improves ProjectQuality Decreases ConstructionCosts Improves ProjectSchedulePerformance D Enables Y Improves ProjectSafety Helps AchieveGreenObjectives Streamlined InspectionProcess D odge Data&Analytics,2020 rvrs (2) 4% www.construction.com Architects/Engineers 6% 6% 7% 10 ear-Round Construction 12 % % 16 16 % % 21% 27%

GCs/CMs 31% 34% 36% 42% T rades 46% 48% 52% 52% 53% SmartMarket Report SmartMarket 54% 56% 60% 65% 67% PREFABRICATION AND MODULAR CONSTRUCTION 2020 DATA ■ ■ ■ ■ ■ averages of those scores for each obstacle. obstacle. each for scores those of averages the reflects order The three. top their among as obstacle each selected many, how company-type, by represent right at chart in the percentages The construction. modular more doing from companies their preventing obstacles biggest the are eight) of a list (from factors three which select to respondents asked survey The Permanent Construction Modular Top Inhibiting Useof More Obstacles Trends Construction Modular SmartMarket Report SmartMarket

delivery method. method. delivery of regardless implemented be can it so design during frequently more included is and types project more to applicable becomes modular as lessen should obstacles company-types all for obstacles meaningful both are method delivery project the and project top three obstacles. their among as quality or cost either cite respondents themselves. companies and institutions, training and academic unions, trade associations, by addressed be can that need important an identifies This challenging. more even be would components modular install and assemble to trained specifically resources finding industry, the across issue an are shortages workforce Since firms. trained workers,adequately suppliers. in sourcing involved as not are they because (23%), perhaps trades (41%), GCs/CMs and (47%) firms by design obstacle cited second-most the attention. most needing factor the is awareness owner company-type, each for obstacle low a relatively is process modular the withcomfortable its Notably, results. and process modular the with familiar become owners of all respondents. Encouragingly, Encouragingly, about concern express (32%) GCs/CMs of third One prefabrication, for findings the with As Availability of modular component is manufacturers half about for obstacle top the is interest owner of Lack

relatively low percentages of Hopefully this will change as more more as change will this Hopefully though significantly less so by though less significantly only ranking sixth among eight, so so eight, among sixth ranking only as do 25% of design design of 25% do as Dodge Data &Analytics Data Dodge unfamiliarity with with unfamiliarity the type of of type the . These . These

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(Percentages That Include Each Factor Among Top Among Three) Factor Each Include That (Percentages Construction Modular Use Permanent That Projects of Number Increasing to Obstacles Not FamiliarWithProcessofModularConstruction A Owner IsNotInterestedinaModularApproach D Concern AboutQuality Costs T A Project DeliveryMethodPreventsEffectiveModularUsePlanning Our ProjectT Obst odge Data&Analytics,2020 vailability ofModularComponentManufacturers vailability ofTr 8% Architects/Engineers www.construction.com 10 oo Much 12 % 14 % ypes NotApplicableforModularConstruction % 8% 17 ained Workforce toInstallModularComponents 18 % % 20% 23% 24% 25% 25% 25% 25% GCs/CMs 29% 31% 32% 33% T 37% rades 41% 47% 48% 51% 52% PREFABRICATION AND MODULAR CONSTRUCTION 2020 Interview:

testing, property by property. an early product catalog that we begin our offering is. It’s creating almost like what lot of modeling to understand before we engage the client, we do a the lifecycle for us. Very early on, even fabrication facility? integrated designand the useofBIMinavertically Could you walk usthrough BIM applications in parallel. the integration of the entire lifecycle of process, it’s natural that we also see products in the modern offsite disciplines, trades and material of prefabrication to integrate more those early trade applications of BIM. coordination, ultimately expanding drawing production and trade generating visualizations, simulations, followed in the 2000s, contractors in production. material and automated equipment detailed shop drawing, bills of and production processes—driving to maximize their own coordination and foremost, created models, first trades in the ’90s and early 2000s applications in prefab. Steel and MEP telling that BIM had its earliest present in the trades, and it’s also SCOPANO: SCOPANO: modular construction? of prefabricationand of BIMplayed intherise What role hasthedevelopment When we then get a project When we then get a project So as we now see an expansion and The majority of designers BIM is embedded across BIM is embedded across Prefab has always been

Stacy Scopano,Stacy Technology Chief Officer, Skender degree ineconomicsfromtheGeorgiaInstituteofTechnology. chairman oftechnologyfortheAGCBIMForum.Heholdsa building constructionatAutodesk,Inc.Hehasservedasapast at SkanskaUSA.Previously, hewastheseniorstrategistfor industries. Mostrecently, hewasvicepresidentofinnovation used byrealestate,architecture,engineeringandconstruction Stacy’s experienceincludesabroadspectrumoftechnologies

Dod ­ Thought Leader Thought ge Data & Analytics Data ge models, either upstream for design models, either upstream for design of BIM? reality complementingyour use How andaugmented arevirtual offs to complementary platforms. some hand- where we need to make single platform all the way down, and this products and projects can take trying to rationalize which of our the second-generation effort, we’re whole host of challenges for us. For possible. That ended up creating a try to push it as far downstream as was the design platform, and to take discipline and trade. Our approach a lot of specialty platforms for each get to reality, the more it fractures into sets of platforms. But the closer you standardized around some common design community is largely would you highlight? What challenges orobstacles learning environment. feedback an iterative loop that makes start the next project. So it’s avirtual update that source catalog where we a standard module, wall or detail, and any modifications that were made to production process. assembling walls the from, that drive we’re cutting steel from, that we’re information flows in our factory that models. These literally turn into the into fully detailed, production-level of parts, which we ultimately develop opportunity, we start with this catalog SCOPANO: SCOPANO: At the end of the project, we look at At the end of the project, we look at When we develop these The architectural and

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www.construction.com very promising. very promising. platforms and techniques. That’s production with some of these really intimate with the means of There’s a lot of opportunity to get techniques to train our labor force? Why wouldn’t we use these same this should only be for clients. stages of talking about whether productiveness. We’re in the early But Ithink there’s another axis of get richer—with added elegance. horizon, these experiences will technology heading? What’s next? Where doyou seemodeling quantified and informed. is sensory.immersion But it’s also that come with those outcomes. That can quantify of investment the flavors different levels of natural light. And we space. We can put them in spaces with put aclient in a small, medium or big broader set of stakeholders. We can a us the ability to immerse giving inform design are maturing, they’re our production capabilities. the process as we were developing high-end level, we were internalizing ergonomics of the line itself. So at that production flow, the design and the our internal teams to validate the augmented reality experiences for the factory, we created virtual and At the early stages of designing through virtual or augmented reality. a variety of ways, and specifically we’ve to extend that effort looked in or downstream to power production, SCOPANO: As these visual expressions that As these visual expressions that

In the next five-year In the next five-year SmartMarket Report SmartMarket

Data:­Perspectives of Modular Builders/Manufacturers Differences Between Modular Specialists and Other Respondents

Among the 608 companies that responded to this Biggest Variances in Forecast for Frequent survey, 15 focus solely on modular construction as

DATA Use of Permanent Modular Construction in their core business. the Next 3 Years (Comparing Modular Builders ■ In the last three years, 87% of modular specialists and Manufacturers With All Other Respondents) report having used permanent modular construction, Dodge Data & Analytics, 2020 and almost all (92%) cited a high level of experience (more than five completed projects). Modular Builders/Manufacturers ■ By comparison, only 37% of all the other respondents All Respondents have used permanent modular construction in the Public Buildings last three years, and among those, only 29% claim a similarly high level of experience. 46% ■ They also have about twice the level of 21% experience with relocatable modular construction Ofces Low-Rise (1–4 Stories) as other respondents. 46% To share their valuable perspective, this section of the 26% report provides highlights of their responses compared with the other participants. College Buildings and Dormitories 46% Forecast for Frequent Use of 33%

PREFABRICATION AND MODULAR CONSTRUCTION 2020 MODULAR CONSTRUCTION AND PREFABRICATION Permanent Modular Construction in the Next Three Years Healthcare Facilities In general, the modular builders and manufacturers are 46% more optimistic in their view of the future for modular 34% construction than the other participants in the survey. An example can be found in their forecast for which building Hotels and Motels types will frequently feature modular construction in the 54% next three years. The chart at upper right shows the five 40% building types that feature at least 10 percentage point differences between how many modular specialists foresee high utilization of modular and the number of other types of companies that agree with them. The order reflects the magnitude of the variance. The modular specialists are more pessimistic than the full study group regarding future modular use for commercial warehouses, manufacturing buildings and retail stores/shopping centers, but these are less targeted markets in general, garnering no more than 20% from either group.

SmartMarket Report Dodge Data & Analytics 50 www.construction.com

Bldg Type Forecast PREFABRICATION AND MODULAR CONSTRUCTION 2020 DATA

embracing modular construction. modular embracing by industry the of future efficient more a far toward way the pointing practitioners, all for target encouraging an company-type. by results, similar report that participants other of number the and construction modular of use the from benefit that of level high very or a high receiving report specialists modular the of many how between difference construction. modular of benefits the of receipt higher significantly report also research in this participated that manufacturers and builders modular the use, future its forecasting about optimistic more being to addition In Modular Construction the From Use of Reported Benefits Modularof Benefits Construction Perspective of Builders/Manufacturers Modular Although the variances are extreme, they provide provide they extreme, are variances the Although greatest the with benefits five shows right at chart The Dod ge Data & Analytics Data ge

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Positive Impact) High/Very Rating Respondents Other All With Manufacturers and Builders Modular (Comparing Usethe of Construction Modular From Reported Benefits in Variances Biggest VH bene D Schedule Certainty Safety Reduced W Productivity Cost Predictability odge Data&Analytics,2020 www.construction.com T Architects/Engineers Modular Builders/Manufacturers GCs/CMs rades aste GeneratedbyConstruction 14 14 14 14 % 16 17 % % %

% % CONTINUED 20% 23% 23% 24%

25% 27% 27% 27% 31% 33% 38% 39% SmartMarket Report SmartMarket 44% 50% 56% Image courtesy of IMC Construction PREFABRICATION AND MODULAR CONSTRUCTION 2020 case study W getting bids (from subcontractors). getting bids (from subcontractors). and we had a difficult market, time projects that were ongoing in the Construction. “We knew the other at IMC Liberato, project executive been bidding projects,” says Bob construction) in the area, and we had during that same period. sector starts, specifically, rose 257% from 2016 to 2017. Manufacturing N.J./Wilmington, Del., area rose 58% by value in the Philadelphia/Camden, Analytics statistics, construction starts heating up. According to Dodge Data & was as the local construction market was scheduled to start in 2017, just But the project in two years. delivered office facility in Newark, Del., to be laboratory and the 312,000-sq.-ft. chemical company wanted Chemours, labor. The project owner, global challenge—lack of available skilled that the project faced a significant project, it quickly became clear Advanced Research (STAR) Campus Delaware’s Science Technology and site in 25ft-long 3,000-lb assemblies. 3,000-lb 25ft-long in site the to shipped and away miles 100 about ashop in preassembled were racks MEP SmartMarket Report SmartMarket University of Delaware’s Campus Technology Advanced and Research Science “We had projects (under million University of of million University brought on to the $150 Construction was first hen contractor IMC

Using Prefabrication to Mitigate Skilled Labor Shortage Risks Shortage Labor Skilled Dodge Data &Analytics Data Dodge going to have a problem.” needed them. It was evident we were 30 guys to put on the job when we we were laying out, they couldn’t find do the job, but on the schedule that We had people tell us they’d to like just call the plumber down the street. is very high end,” he says. “You can’t especially scarce. “This particular work electrical and plumbing, were people to do the work.” We saw that we couldn’t get enough and labs on the other. IMC saw an provide access to offices on one side which created two long corridors that by architect L2 Partridge in a U-shape, Liberato adds. and spread them around the country,’” right now—let’s the resources take area and Wilmington are stretched available labor. “We decided, ‘The Philly building elements in areas with more would allow the team to manufacture employed a prefabrication strategy that To help meet labor demands, IMC Using Prefabrication Across theUSThrough Utilizing LaborResources Certain trades, such as mechanical, The STAR building was designed NEWARK, DELAWARE NEWARK,

52 www.construction.com closed in. to the elements until the building was prevent the racks from being exposed wrap still on. protective This would where they could be installed with the wrapped and shipped to the site, assemblies,” he says. pound them in 25 foot-long, 3,000 sub-assemble these racks and ship a way we conceived to build and drawings, and, in avirtual model, system piping. plumbing and laboratory gas 32,463 linear feet of HVAC, potable galvanized duct with approximately of welded stainless steel duct and racks consisted of 153,650 pounds water and hot water. In total, the vacuum), high-pressure steam, chilled breathable air, elemental gases and duct, lab services (including RODI, consisted of supply duct, exhaust design and schedule input. Racks his team was able to provide both schematic design, Bernecker says With much of the project still in MEP RacksOffsite Designing andBuilding president at H.T. Lyons. in a shop,” says Chris Bernecker, vice all of the added benefits of working work in a controlled environment with pool of skilled craftsmen, who could of the jobsite, they were able to tap a north the work and going two hours north of the project site. which is located roughly 100 miles racks at its Allentown, Pa., facility, to help design and manufacture the subsidiary of ENGIE North America, down the 10-ft.-wide corridors. opportunity to create long MEP racks Completed racks were shrink- “We took two-dimensional “By outsourcing that portion of IMC contracted H.T. Lyons, a

CONTINUED University of Delaware’s Science Technology and Advanced Research Campus case study CONTINUED NEWARK, DELAWARE

H.T. Lyons, which is a union the basis of design and the footprint. modular, Liberato notes that the team contractor, was able to build all of We had working sessions to also benefited from other advantages. the racks using its existing shop nail down the final design and get For example, quality control of the CUP employees. However, Bernecker says things tweaked.” was assured before it was shipped the company has the option to bring Liberato says Chemours facility to the site. “We did all of the pre- in additional union workers as needed mangers participated in several of the commissioning [at the Systecon shop] on large projects. The multi-trade crew working sessions to make sure they and then they take it apart and ship it,” first built the frame, then the duct work, would approve the access points and he says. “You know that you have a followed by the piping. Most of the spaces between units. running, working and tuned-up CUP work was completed by 30 employees “It also eliminated that process before it’s delivered to the site.” during a standard day shift, but at peak where the engineer designs then Liberato also notes that the strategy production a second shift of 12 workers comes back, gets feedback from helped remove some potential safety was added. contractors and goes back and designs risks by moving production to a Because the racks were designed more,” Liberato says “It was all controlled shop environment. at LOD 400 modeling, they could be designed simultaneously.” Thanks in part to the prefabrication manufactured while steel erection was In order to enable the CUP to be and modular strategy, the project was under way on the STAR building. Once delivered from Ohio to Delaware, it completed on time in December 2019— the building was ready, it took IMC was designed as 16 segments that roughly two years after it broke ground. PREFABRICATION AND MODULAR CONSTRUCTION 2020 MODULAR CONSTRUCTION AND PREFABRICATION crews roughly four months to install could be reassembled onsite. “Without the use of prefab, I don’t see the racks. By comparison, Bernecker Because the CUP was manufactured how we could have met that schedule,” estimates that if the systems had in Systecon’s shop, Liberato says work he says. n been “stick built” onsite rather than on the CUP was able to begin three preassembled, it would have taken months earlier than if it had been built Project Stats stats crews roughly nine months. entirely onsite. Overall, he estimates University of Delaware’s that the CUP would have taken roughly Science Technology and Prefabricated Central nine months to build, if it had been Advanced Research (STAR) Utility Plant constructed conventionally. By using Campus Newark, Del. Another major element of the building the modular option, the CUP project Ground breaking: that the team was able to manufacture only required 5.5 months. December 2017 offsite was the central utility plant. The Most important, IMC estimates that Completion: December 2019 CUP was initially envisioned inside the the strategy transferred about 1,500 MEP Racks consisted of building with an outside utility yard man-days offsite. “That’s a significant 140,000 lbs. of ductwork and for equipment such as cooling towers. amount of labor that we just didn’t 24,900 linear feet of piping. Liberato says that by moving the CUP have [onsite],” he added. MEP Racks consisted of: outside and stacking it, the team was The modular CUP solution cost • Supply duct able to move the entire CUP outside the roughly 3.3% more than was estimated • Exhaust duct building and onto the planned utility to stick-build the CUP onsite. However, • Lab services, including RODI, yard site. This freed up roughly 5,000 Liberato says that cost increase was breathable air, elemental gases, sq . ft. of space inside the building to be likely offset when accounting for the vacuum • High-pressure steam used for other purposes. shorter schedule. “When you build • Chilled water The team contracted Ohio- onsite, you’re going to run into things • Hot water based modular building systems like coordination issues that will set MEP Rack Schedule manufacturer Systecon, which is also you back,” he says. “In the end, • Prefabrication required four a subsidiary of ENGIE, to design, I believe [the modular strategy] was months of field installation manufacture and deliver the CUP. cost neutral.” • If conventional stick-built, “It was basically a mini design-build Although labor was a driving force schedule estimated at 9 months project,” Liberato says. “We gave them in the decision to use prefab and

Dodge Data & Analytics 53 www.construction.com SmartMarket Report Image: OxBlue PREFABRICATION AND MODULAR CONSTRUCTION 2020 case study T made the development eligible made the development eligible from an intermodal transit station— possible. Its location—only a block The Union Flats shows what is Modular totheRescue look at prefab and modular,” she says. the area. “So it’s that we imperative aday to work in two or three hours now commuting remaining workers with nearby big tech projects for the lower profit margins, to compete of housing development, with its and the inability recession of 2008, trades and/or the region during the resulted from migration out of the shortage of skilled labor that has such as the contributing factors Windflower CEO Fei Tsen. She cites even middle-income earners,” says development that is affordable to in the Bay Area trying to do housing a struggle right now for those of us well as environmental ones. “It’s quite economic and social dimensions, as to forget here that sustainability has in the Bay it impossible Area makes Platinum certification. also enabled the project’s LEED degree to which modular construction green design and development is the of The question for practitioners construction in atight market. epitomizes the advantages of offsite development, the Union Flats largest modular multifamily Properties as northern California’s CityView and developers Windflower performance. Completed in 2018 by achieving exemplary environmental construction in the region while pioneered large-scale modular SmartMarket Report SmartMarket The vertiginous cost of housing southeast of San Francisco, development 30 miles 243-unit, mid-rise housing he Union Flats, a 2.4-acre,

Sustainability’s Triple Line Bottom Modular Construction and and Modular Construction

The Union Flats Housing Development Flats Housing The Union Dodge Data &Analytics Data Dodge per day. per 12 of atarate place into craned modules, wood-framed 388 features Flats Union The other and backs onto an embedded to a sidewalk front doors along the along one side, presents ground-floor edges alandscaped promenade plaza, building fronts onto a new civic David Baker Architects (DBA), the achievements possible. in that sense made the rest of its to meet its funding deadline, and compression allowed the project of 12 per day. The resulting schedule concrete parking garage—at a rate Type I podium, or wrapping a Type I either onto afoundation, atop a from Idaho and craned into place— wood-framed modules, shipped and superstructure—could. simultaneous construction of sitework couldn’t meet. Modular—with its date that conventional construction that funding mandated acompletion and Community Development. But the California Department of Housing Infrastructure Infill Grant Program of for millions in funding from the Designed by San Francisco-based The development consists of 388 UNION CITY, CALIFORNIA CITY, UNION

54 www.construction.com construction waste was the main out, surprisingly little. Reduced Platinum achievements? As it turns contribute to the project’s LEED much did modular construction schedule compression, how But beyond that initial enabling Independent ofModular Sustainability dog spa. a co-working, fitness, events and pavilions with spaces for leasing, swimming pool and green-roofed a central courtyard provides a that can build social connectivity, casual interactions among neighbors the nearby hills. Helping to foster the opening up to daylight and views of articulated to provide shade while northwest and southeast, bays are façade, balconies are recessed; at the is self-shading: At the southwest batten configuration. The massing fiber-cement panels in board-and- include wood, stucco and strips of parking garage. Cladding materials

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factor, says Daniel Simons, a principal health, “that hasn’t really happened stats Project Data at DBA. And the manufacturer was with multifamily housing,” also able to obtain linoleum flooring says Simons. Location: at a price that allowed the project to But while individual housing Union City, California substitute it for the VOC-emitting vinyl developments may lack access to the Completed: August 2018 more commonly used in multifamily economies of scale that have allowed Number of Units: 243 housing, which improved the project’s corporations building millions of Project Sq. Ft.: 289,987 indoor air quality. But, in general, says square feet to advance materials health Site Sq. Ft.: 107,522 Simons, “most of the things that we did in the office sector, modular factories Units/Acre: 99 that made the project more sustainable may have an opportunity. “They’ve Open Space Sq Ft.: +/-20,000 were independent of it being modular.” started getting purchasing agreements Parking: 244 The Union Flats was DBA’s first with manufacturers because they Certification:LEED modular project. The firm now has know they’re going to need a lot of this for Homes Multifamily another almost complete, and four stuff, and so they know they can get Mid-Rise—Platinum or five more in design or about to good pricing,” says Simons. “But they Innovation & Design start construction. “We’ve learned a haven’t taken that next step to say, ‘not Process: 6.5/11 lot since the first one,” says Simons. only can we get good pricing, but we Location & Linkages: 9/10 “It was definitely a bit of a proving should also push for PVC-free flooring Sustainable Sites: 16/22 PREFABRICATION AND MODULAR CONSTRUCTION 2020 MODULAR CONSTRUCTION AND PREFABRICATION ground.” Even so, he says that the and other materials health priorities Water Efficiency:9/15 environmental opportunities that that could be on our radar.’” Energy & Atmosphere: were missed on this project—and Another sustainability advantage 23.5/38 that continue to be missed in modular fabricators could offer lies in their Materials & Resources: 8/16 construction more generally—“mostly tighter control of quality standards. Indoor Environmental come from sustainability not yet “The quality of multifamily Quality: 9/21 being on the radar of the factories as construction is variable, to put it Awareness & Education: 2/3 a benefit.” Modular manufacturers generously, in terms of quality of Lead Developer: CityView know that it is the method’s time and insulation installation, thinking Co-Developer: cost savings that are selling their through thermal breaks and even Windflower Properties products, he says, so their research down to mechanical systems,” says Architect: and development efforts are aimed Simons. He sees these as areas where David Baker Architects at improving those outcomes even modular fabricators could leverage Landscape Architect: further. Now, however, he sees some their factory-based methods and April Philips Design Works manufacturers beginning to realize that growing market position to improve General Contractor: prioritizing sustainability can open up the sustainability options available to Cannon Constructors North, Inc. more opportunities. the multifamily sector. “If it becomes Modular Fabricator: a factory standard, we could bring in Guerdon Modular Buildings Room for Improvement more advanced technologies to help Top of Simons’ wish list is healthier with energy efficiency and ventilation materials. DBA’s efforts to improve the at prices that are accessible,” he says. development and attaining LEED quality of materials in their multifamily “There’s a bunch of areas like that Platinum certification—stand as a projects are often stymied by a lack where multifamily housing isn’t milestone for the multifamily sector. of product ingredient transparency, very sophisticated, and modular They demonstrate how modular a lack of choice, prohibitive costs or could help.” construction’s schedule and labor a combination of all three. Unlike the Such improvements will come too market advantages can help get office sector, where money-backed late for the Union Flats. Nevertheless, an environmentally and socially research and advocacy has been able the project’s parallel achievements— progressive project built and contribute to improve materials transparency and in pioneering large-scale modular to sustainability’s triple bottom line. n

Dodge Data & Analytics 55 www.construction.com SmartMarket Report PREFABRICATION AND MODULAR CONSTRUCTION 2020 case study T be cost sensitive,” says Peter Waller, “We knew from the start that it would or differentiation of units by income. to 120% of AMI, with no segregation other half, to households earning 80% area median income (AMI), and the households earning 50% to 60% of the units are rented at rates accessible to area, half of Coliseum Connections’ income developments in the Bay Oakland, Calif. adjacent to arapid transit station in 110-unit housing development located Coliseum Connections, a$43 million, behind the recently completed foray into DfMA is the project team construction. Fresh from their first experience of modular their first are embarking on and contractors design teams number of developers, across North America, a growing SmartMarket Report SmartMarket As one of the first truly mixed- As one of the first Architect: 110 Units: Development Corp townhomes (17), 2 BR townhomes (27) (17), townhomes townhomes 2BR Owners: Enterprises LLCEnterprises Cahill Contractors Contractor:General Cahill Cost: Construction Completion: Type: Construction Certification: Car Parking: DUA: Location: Bike Parking: Bike Ft.: Sq. Building Modular Building Manufacturer: Site: 1.36 acres 1.36 81 (DfMA) on the upswing (DfMA) on the upswing manufacture and assembly everything. With design for here’s time for a first UrbanCore LLC, Oakland Economic Economic LLC, Oakland UrbanCore 1 BR Flats (48), 2 BR Flats (18), Flats 2BR (48), 1BR Flats 1 BR 801 71st Avenue, Oakland, Calif. Calif. Oakland, 71st Avenue, 801 PYATOK architecture + urban design

2019 86 GreenPoint Rating Platinum (149) Platinum Rating GreenPoint 98 134,584 sq. ft. sq. 134,584 $43 million $43 I-A, III-A, V-B III-A, I-A, Doing First Time Right It the Dodge Data &Analytics Data Dodge Guerdon Guerdon Contractors, the project’sContractors, general Villanueva, project manager at Cahill in order to execute well, says Purnima strategy of overplanning everything with DfMA. So the team adopted a the project team had prior experience Except for the factory itself, no one on Planning forSuccess in Boise, Idaho. Enterprises, amanufacturing facility were prefabricated at Guerdon All units of both building types low-rise neighborhood to the east. two-story townhouses meeting the the transit lines, and three rows of the west side of the site, facing of 66 elevator-served flats along blocktwo types: a five-story layout consists of four buildings of modular project’s straight-forward we could manage.” efficient a construction approach as Pyatok Architects, “so it had to be as principal in charge of the project at Coliseum Connections Coliseum The wood-framed volumetric OAKLAND, CALIFORNIA

56 Architects, Gates + Gates Associates Architects, & Heger Inc. & Heger Acoustics Consultant: Acoustics Waterproofing Consultant: Studio, Inc. Consulting, Inc. Consulting, Civil Consultant: Luk and Associates Consultant: Civil Color: Color: Utility Consultant: Utility Interior Consultant: Design Energy Consultant: Consultant: Energy Landscape Architect: Design Lighting Minuscule Lighting: Modular Consultant: MEP Consultant: MEP Structural Consultant: Specifications: www.construction.com Colour Studio, Colour Inc.

Pawprint Specs, LLC Specs, Pawprint Emerald City Engineers, Inc. Engineers, City Emerald Millennium Design and and Design Millennium the permitting of them. A pleasant for the modular system and to guide develop an effective set of drawings prefabrication consultant helped to it ramped up the learning curve, a efficient design. more efficient process and a more The result, he says, was both a design team and also the owner.” discipline in the process—for the “Working with modular instills a and changing things,” says Waller. you have to start opening up walls prefabrication are lost the moment to be right. “The advantages of requires, and those decisions had than conventional construction decisions much earlier in the process to consider, coordinate and finalize “overplanning” required the team she says. a fantastic, successful project,” but we all left thinking this was contractor. “It was ataxing approach, Davis Energy Group, Inc. Group, Energy Davis Prefab Logic LLC Logic Prefab Golden Associates Landscape To a boost to the team as give From a design perspective, RGD Acoustics, Inc. RGD Acoustics, DCI Engineers DCI SCH Simpson Gumpertz Gumpertz Simpson SCH DE + Dilworth Elio Elio + Dilworth DE

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Doing It Right the First Time OAKLAND, CALIFORNIA

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surprise was how smoothly the below-grade structure is being built complex permitting process ran, says onsite at the same time, and both Waller. In California, prefabricated require supervision. For the modular volumetric modules are permitted at units, quality control is not just a the state level, while site work, onsite matter of making sure the finishes connections and building envelopes are to spec; it is also validating are permitted locally. In keeping critical tolerances: alignments for with their overplanning strategy, the anchor tiedown system that runs the architect met with the city’s plan continuously through the stacked checker early and often to maintain units from the foundations, for communication lines throughout the example, and points of connection complex approvals process. Far that have been coordinated with MEP from setting up objections to the contractors in the field. “All of that at Intensive planning helped achieve goals like a shorter construction innovative construction method, the once is a challenge people may not schedule for Coliseum Connections. building department was keen to think about when they think modular,” engage. “Everyone’s talking about says Villanueva. modular, and we need to learn how The project had its own quality than estimated for a similar site- to permit these projects,” is how control representative monitoring built project. Because the cost of PREFABRICATION AND MODULAR CONSTRUCTION 2020 MODULAR CONSTRUCTION AND PREFABRICATION Waller describes the attitude. And production at the factory full-time, the modules themselves wasn’t although the inspectors naturally but with over 20 workstations at the significantly less than conventional wanted to consider the safety of the facility, “you’re not going to catch construction, much of the savings project as a whole, they were able everything,” says Villanueva. (She accrued from reduced staffing to limit their review to the plans to beef up factory monitoring overhead on the shorter construction municipality’s jurisdiction. on modular projects Cahill has lined period. A shorter construction Another key aspect of planning up for next year.) Atypical units, such schedule also meant the owner was was the staging of the delivered as corner suites, seemed to give the able to begin collecting rent sooner, modules prior to installation. Leasing most trouble, with egregious glitches which for an affordable housing a nearby parking lot enabled units like missing plumbing or electrical project in the Bay Area’s notoriously to be delivered at all hours and wiring necessitating remedial unaffordable real estate market, placed in exactly the right order work onsite. Villanueva estimates makes a difference. “Schedule is to be transported just a few blocks that finding and correcting such money,” says Waller. to the site as they were needed. deficiencies post-delivery amounted Underlying these hard metrics, Because the crane and crew that set to about 4% or 5% of the factory the major achievement of this first the modules are in high demand— contract value. “The challenge is venture into DfMA was teamwork. and expensive—having everything trying to account for these unknowns “The city, the developers, the in place to increase efficiency is a big in a schedule,” she says. “How much contractor and the design team: deal, says Waller. At peak flow, the out of tolerance units will be, how People were motivated to make crew was setting 14 to 16 units a day, many deficiencies you’ll find—you this project a success,” says Waller. taking only five weeks to set them all. just don’t know.” Villanueva agrees: “The fact that we Even with those deficiencies, worked together, figured it out, over- Challenges however, using DfMA still enabled planned it, saw it succeed and now But even with exemplary planning, the project to shave about $4 million know what to expect so that future challenges arose. Chief among dollars off the construction cost projects will be even more successful, them from Cahill’s perspective was compared with conventional stick- that’s a huge accomplishment,” she quality control. It is the nature of built methods, and to reduce the says. As other project teams embark prefabrication that modular units entire construction schedule to on DfMA for the first time, they may are being built in the factory and 17 months, about 4 months less find that encouraging.n Image Courtesy of Pyatok Architects

Dodge Data & Analytics 57 www.construction.com SmartMarket Report Image courtesy of citizenM PREFABRICATION AND MODULAR CONSTRUCTION 2020 case study A lighting, blinds, and TV. and the room’s iPad—which controls TV (pre-wired), art, movable furniture Added onsite were a wall-mounted glass-enclosed shower and toilet pod. furnishings and fittings, and a frosted- fire-proofing, finishes, lighting, fixed with windows and thermal enclosure, Modules were shipped complete cellar), site-cast concrete podium. in 15 stories on athree-story (plus consists of 210 modules, stacked properties, the Bowery building construction chops on eight European citizenM, which earned its modular Developed by Dutch hotel brand by Piece Piece do in the factory, the better.” the factory, inthe do can we more labor, the skilled find to difficult increasingly it’s because and repetition, much so there’s “Because Concrete Architectural Associates. Amsterdam-based with the project for architect Planners, and Architects Group Jacobs B. Stephen with aprincipal Astrachan, Isaac-Daniel says sense,” total makes modular healthcare, even for some residential, Side. East Lower in 2018 Manhattan’s on completed building 300-key a 19-story, Bowery, citizenM is hotel, modular tallest world’s the way, the with Pioneering scale. of economies greater even unlock can project to project from specifications chains’ hotel of consistency the modular, while of efficiencies the maximizes Standardization on method. the capitalize to positioned well sector hospitality the makes buildings SmartMarket Report SmartMarket “For hospitality, for some A High-Rise Stylish Modular Hotel Rises in Modular NYC Rises Hotel Stylish A High-Rise of repetition in hotel in hotel repetition of level high the US, in the up picks construction modular of s adoption

Dodge Data &Analytics Data Dodge and bolted into place. into bolted and craned and required as unwrapped then lot, aneighboring on staged Delivered modules were transport. during ingress moisture prevent to membrane in a waterproofing wrapped individually was it facility, manufacturing climate-controlled the in completed was one each As route. en modules the protect to planning convoy. special and permit of Transportation Department a requiring compliance ADA for designed units the only with York— New of streets the through truck a flatbed on ride to modules steel-framed the allow 9 feet by 8 feet by feet 48 of Dimensions side. either on room guest sq.-ft. a165- with corridor of a section offering affordable luxury, modular modular luxury, affordable offering as itself markets citizenM Although Cons and Pros high-rises. stylish be can hotels modular that demonstrates Manhattan, in constructed building modular a19-story Bowery, citizenM Transportation required careful comprises moduleEach typically citizenM Bowery citizenM NEW YORK, NEW YORK

58 www.construction.com

schedule. Then wind speeds during during speeds wind Then schedule. the to customs and shipping added in Europe) hotels client’s the for modules the built had (which Poland in facility a manufacturing use to decision the example, For out. pan not did advantage that meant factors complicating of anumber project, this for But construction.) off months or weeks shaves typically which simultaneously with site work, construction under are (Units modular. go to reasons main the of one often is schedule even, in about achieve. would footage square same the with hotel a typical what than rooms guest more a third about in fits property Bowery The size. unit small its is affordable citizenM makes chiefly modular.”and What conventional between different much that not is construction of cost “the I hear,” Astrachan, what says “From affordability. to contribute necessarily doesn’t construction With construction costs coming coming costs construction With CONTINUED A Stylish High-Rise Modular Hotel Rises in NYC NEW YORK, NEW YORK

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construction exceeded the crane’s steel. A concrete core and a blade completed in 2014) switched to capacity, resulting in lost time. And shear wall support the building’s conventional when the DOB refused there was a several-months-long lateral loads, with modules fastened to permit the incorporation of a break in construction due to an to these elements and one another sprinkler system that could not be extraneous circumstance. “Little via steel connections. locally inspected. Since then, the things add up,” says Astrachan. “Marrying up the tight tolerances city has become more supportive of a module with a cast-in-place of modular construction, and DOB Modifying for Modular concrete core was a challenge,” inspectors travelled to Poland And contrary to the usual says Michael Schwartz, a senior to inspect sprinklers in Bowery recommendation to design with associate at DeSimone Consulting modules. With citizenM’s first North offsite in mind from the outset, Engineers, structural engineers for American modular development now citizenM Bowery didn’t start out as the project. Connections for the complete, “they’re over the hump,” modular. The project was originally modules had to withstand the large says Schwartz, and the company has intended to be site-cast concrete, forces a tall building generates, modular hotels for other American and the design had already been while also providing sufficient field cities in the works. n approved by New York City’s tolerances, avoiding interference Department of Buildings (DOB) when with adjacent modules and allowing a change in ownership structure room to assemble the modules. PREFABRICATION AND MODULAR CONSTRUCTION 2020 MODULAR CONSTRUCTION AND PREFABRICATION resulted in the shift to the new Wherever the two structural systems method. The design team filed a met, the engineers maximized post-approval amendment to modify the connections’ tolerances, and stats the building to facilitate modular. stood ready to respond in the field Changes included relocating the with a sketch or site instruction Project Data mechanical room from the 18th floor to keep the modules stacking at a Location: to the third floor to reduce the weight rate of eight to 10 a day. Astrachan New York, NY the modules would need to support describes the potential for problems Project Size: and to allow work to begin on it while where conventional and modular 100,000 square feet the modules were being placed. A systems meet as the project’s “No. 1 Construction Start: structural redesign was also needed. lesson learned.” 2012 The structural solution entails Quality control may be the primary Construction Complete: three distinct layers. The lowest layer, advantage of modular construction 2018 up to the third floor, comprises large- that this project was able to realize. Owner: volume amenity spaces—such as a With work being conducted out of citizenM lounge with a cafe and bar, a ground the weather, at workbench height, floor cafe, and a double-height and with assembly-line production Architect: Stephen B. Jacobs Group lobby—that were not well-suited to methods, “modular construction Architects and Planners modular construction; rather than takes the pressure off the back end Interior Design: force things, this section remained in of the construction schedule,” says Concrete Architectural site-cast concrete. A massive, three- Schwartz. “There was none of the Associates foot-deep transfer slab, with spans usual check-listing—cracked tile, Structural Engineer: reaching 34 feet, was introduced at loose wallpaper—when the hotel was DeSimone Consulting Engineers the fourth floor to provide a base trying to open.” General Contractor: for the 15 stories of guest-room The Bowery location is citizenM’s The Rinaldi Group modules. And above them, the second shot at building modular in top floor—which accommodates New York. The first initiative (which Modular Builder: Polcom Group a rooftop bar with outdoor seating became the brand’s conventionally and views—is framed with structural constructed Times Square property,

Dodge Data & Analytics 59 www.construction.com SmartMarket Report Image Courtesy of CannonDesign PREFABRICATION AND MODULAR CONSTRUCTION 2020 case study W existing building. including atenant improvement of an across three different sites of care, installed 137 exam room modules team has integrated project delivery exam rooms. To date AAH and its care’s most common spaces: patient construction of one of ambulatory AAH has now begun modularizing spaces. Applying these standards, care rooms, and reception and intake stations, bathroom pods, inpatient patient exam rooms, emergency care frequently repeating spaces, such as consistent design standards for its Cannon, AAH has developed a set of the initiative. program, in a written overview of architects for AAH’s modular their system,” says CannonDesign, consistent results across delivering improvingmarket, cost certainty and advantage by accelerating speed-to- organizations can create competitive construction approaches, healthcare capital improvement program. project, but across its billion-dollar modularization—not just on a single a program of standardization and construction. on AAH has embarked exploring the potential of modular and 27 hospitals, is care centers 500 healthcare system comprising some an Illinois- and Wisconsin-based Advocate Aurora Health (AAH), construction—and has progressed construction—and has progressed a medical office building then under test—a hypothetical modularization of The program began with a beta Iterative Improvements SmartMarket Report SmartMarket Working in collaboration with “By shifting to modular design and at 12% annually, trending upwards office buildings ith costs for medical

Systematic Modularization

Dodge Data &Analytics Data Dodge construction for patient exam rooms. rooms. exam for patient construction modular use to begun has AAH contributing factors: the following as the most significant identify and fabrication perspectives from owner, design, construction case study, project representatives In a set of notes generated for this tolerances of 1/8 of an inch per 10 feet. three sites of care and construction list items for modules across all says CannonDesign), no punch 30% of construction cost is rework, no need for onsite rework (typically pods, include no defects in delivered building’s structural grid. suggested atweak to the Oak Lawn project-integrated modular fabricator modular in mind) to just two once the that had not been designed with meet the requirements of a building for the beta test (to an initial five achieve the design dropped: from of variations that were needed to Ill. With each iteration, the number build completed in 2019 in Oak Lawn, Lombard, new- Ill., and a 62,300-sq.-ft. 8,630-sq.-ft. tenant improvement in completed in 2017 in Chicago, a outpatient center a 55,000-sq.-ft. across three sites of care, including Advocate Aurora Health Indicators of quality improvement Indicators ILLINOIS AND WISCONSIN

60 www.construction.com ■ ■ ■ ■ ■ ■ ■ ■ modular scope. of waste two dumpsters for the fixtures: an average of only one or accessories and for the modules’ of packingalmost exclusively boxes drywall is possible, waste consists has plummeted. When precutting of measures, project waste productivity according to CannonDesign. from use of modular is about 28%, from use of modular is about 28%, time typical reduction in delivery care center.recent 62,300-sq.-ft. A care center to twice that on the most weeks on the initial 55,000-sq.-ft. modularization range from two attributable in whole or part to Overall schedulemarket. savings improve speed-to- the projects’ field work), productivity gains day that’s typical for construction 25% improvement over the six-hour a day (a able to work eight hours Because manufacturing teams are

each pod the pods production jigs such as table-height work and teams from project to project trained union labor, and consistent to starting production decisions and their execution prior continuous improvement) withstand transportation logistics studs, and CNC-cut gypsum board and pre-piped boxes, precut steel plumbing, pre-bent electrical pipe possible, including preassembled Productive and ergonomic setups, A quality review checklist for Teams consisting of properly Consistency of design across Mockups to confirm design Kaizen learning (a process of Higher quality materials to Nested prefabrication wherever As an incident of the quality and As an incident of the quality and

CONTINUED

Advocate Aurora Health ILLINOIS AND WISCONSIN

case studyCONTINUED

Many of the factors contributing stats Project Data Exam Pods: 53 to improved quality and efficiency Exam Pod area: 6,360 sq. ft. also foster worker safety—both in Owner: Advocate Aurora Health Schedule Compression: 2-3 weeks the factory and, through reduced User: AMG Medical Office Building (AMG congestion, onsite. In 10,485 hours Construction Manager: Lombard): worked across the three projects, The Boldt Company Type: Tenant improvement there were only two safety incidents, Modular Standardization and Completed: 2018 and neither was OSHA recordable. Design: CannonDesign Modular Fabrication: Project Area: 8,630 sq. ft. A Collaborative Effort Integrated Modular Design Exam Pods: 12 Exam Pod Area: 1,440 sq. ft. Underlying the achievements and Examination Room Pod Area: Schedule Compression: None iterative improvement of AAH’s 120 sq. ft. Medical office building modular program is an Integrated Total Examination Room Pods (AMG Oak Lawn): Project Delivery structure. “It took true (Three Projects): 137 Type: New build team collaboration and effort to get Total Pod Area: 16,440 sq. ft. Completed 2019 this all to work,” says Greg Heiser, a Total Project Area: 125,922 sq. ft. Project Area: 62,292 sq. ft. principal in CannonDesign’s Chicago Medical Office Building Exam Pods: 72 office. “We can’t stress that enough.” (AMG Sykes):

PREFABRICATION AND MODULAR CONSTRUCTION 2020 MODULAR CONSTRUCTION AND PREFABRICATION Exam Pod Area: 8,640 sq. ft. In particular, IPD’s characteristic Type: New build Schedule Compression: cost transparency incentivizes Completed: 2017 One month wholehearted collaboration. Project Area: 55,000 sq. ft. According to a joint statement from owner, design, construction and fabrication representatives, “without prior to finalizing the pod layout and collaborative approach to IPD commercial structure, the true ■ Resolution of MEP and fire inspections in-shop and onsite cost advantages of the exam pod protection routing before Based on the success of its modular integration with traditional construction prefabrication starts (coordination initiative so far, AAH and its project would be difficult to bring to fruition.” and routing that optimize the pods delivery team are now exploring The owner’s role as proponent is might not optimize MEP design opportunities for expanding the essential, as is the early onboarding efficiency and productivity) use of modular construction to of the CM, the design team and the ■ Reduction of onsite through-floor other frequently repeated spaces. modular fabricator. “It is a different penetration tolerances As the modular program takes its process,” says Heiser, “a different way ■ Planning of site logistics for place in the organization’s suite of of thinking.” The team also highlights unloading and hoisting the pods, offsite construction strategies— the role of technology in the projects’ with implications for the window including building envelope panels, successes: “You’re taking a completed of entrance, the rest of the building multi-trade racks and interior wall element and dropping it into something production schedule and the panels complete with rough-ins— that’s already partially constructed,” enclosure schedule: (a minimum additional advantages are expected says Heiser. “That wouldn’t have path of 12-ft.-wide-by-10-ft.-6- to open up. “The things AAH wants been possible without BIM to help us in.-high is typically needed to to see next, and the volume of their understand the tolerances involved and transverse the pods through the capital demand, will drive some of the coordination all this would take.” building, and must be coordinated these,” says Ryan Yoho, director of Prime examples of that coordination with all overhead work) construction management at the Boldt include: ■ Procurement of the pods Company, CM for the projects. “If you ■ Early communication with the ■ Early engagement of the have the right capacity, you can be construction manager/build partner Authority Having Jurisdiction to more bold with what’s next.” n to bring all trade partners on board facilitate an efficient, systematic

Dodge Data & Analytics 61 www.construction.com SmartMarket Report PREFABRICATION AND MODULAR CONSTRUCTION 2020 DATA Data: modular construction. modular and prefabrication of use their driving benefits similar cited owners the of Many Construction and Modular ofUse Prefabrication Driving Benefits construction. modular and prefabrication using of challenges and benefits the of discussion open and frank a encourage to order in confidential kept were Interviews residential. and healthcare, education, hospitality sectors: infour approaches these using projects with individuals five with conducted were interviews construction, and modular who are prefabrication with engaged owners of To perspective the gain The Research the industry. of it use wider in tosee force the driving to be that they have but recognize they also praises, its sing construction modular who and engagedOwners are prefabrication with Construction Modular and Prefabrication Using On Perspectives Owner SmartMarket Report SmartMarket • • • All are planning to increase to increase are planning All The five participants have different havedifferent participants five The All participants are senior are senior participants All approaches in the future. inthe approaches these with engagement their first modular projects. modular first their of planning are midst inthe two and buildings, modular two or Twoa while. one have completed for prefabrication using of projects majority the building been has One modular. with levels of experience and development manager. acquisition and executive director to an presidents, vice senior and to partner, assistant a managing from approaches, to these use for decision the responsible and companies executives intheir

­ Owner Perspectives Owner

Dodge Data &Analytics Data Dodge ■ ■

decision. their in factor a significant as approaches. these use to decision their in factor amajor as schedule compress to participated mentioned the ability Two owners mentioned quality quality mentioned Two owners who owners the of all Nearly • • • • • Hospitality owners: Both owners owners Both owners: Hospitality Residential owner: “We want want “We owner: Residential Education owner: “We originally originally “We owner: Education Healthcare owner: “We think “We owner: Healthcare “You it do owner: can Healthcare us tous concept.” this attracted really That operations. six additional months of you have12 building, months spend you only if But operations. of have months 42 you only then traditional, building spent is that 18 and of months, months of 60 period you have overall hold an If [for property]. the period hold overall inyour history operating “You more alot appeal: gain exact its driver, explains one and important an as schedule mention of that.” all provides modular cheaper, and faster and them to want also build we and buildings, sustainable relatively quickly.”relatively completed be could that a solution was it because atmodular looked the field. in out than environment easier inan inspected be can it tested or be of alot can it because quality better is construction] [modular up.” put steel the or done sitework the getting or permitting like activities other with in parallel

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these approaches. these of use the driving factor a major as issues labor with important drivers for two owners. two for drivers important Two owners mention dealing dealing mention Two owners Improved site logistics are are logistics site Improved • • • • • Residential owner: Since Since owner: Residential “Trained, owner: Healthcare Hospitality owner: “More “More owner: Hospitality Education owner: She notes that notes that She owner: Education Healthcare owner: Many of Many owner: Healthcare transportation costs.”transportation by offset partially only rates,” labor lower are which “much with in Pennsylvania facility offsite an are using York, they in New that mentions he are are they building homes the important driver. important rooms” an guest was the in of finishes quality consistent elements happen offsite shrunk shrunk offsite happen elements construction of alot major that fact The of land. piece asmall on Cube aRubik’s around people moving we were so have interim housing, not we did and space, limited had site. “We urban a-half-acre atwo-and- on program phase multi- their arethey constructing prefabricated work.” the doing is that pool labor ... adifferent scarce it’s generally more becoming is labor skilled bathrooms and breakbathrooms areas.” need [who] somewhere, to park there trying out people many as “you don’t have because hospital operating the on impact the noteshe akey reducing is driver and facilities, medical functioning in take place projects their

PREFABRICATION AND MODULAR CONSTRUCTION 2020 DATA Data Sidebar: Data

■ ■ ■ partners have embraced it: “We “We it: embraced have partners their construction prefabrication, drive initially they after that driver. major the being as affiliated is he which with brand the of leadership the credits he and sector, hospitality the from one was use its of driver direct the wasn’t who owner only The approaches. these of use the drive owners that is interviews five the from finding clear One Approach This Taking Decision-Makers for

was important in the decision. the in important was neutral cost being that mention did afew market), labor their to due them for stick-build traditional than 10% cheaper least at be will it that expectation the have (they mentioned cost savings as driver owner.residential and education the for factor key driver. a as innovative be to desire the While only the residential owner was Sustainability an important mention owners five the of Three • • • The healthcare owner notes notes owner healthcare The Education owner: Mentions that that Mentions owner: Education Hospitality owner:“Taking Hospitality Residential owner: “We are a “We owner: Residential were attracted to.”were attracted we that aspects environmental the and style the “had they because vendor modular their selected they with technology.” moving and agile as ourselves we likeand new firm, thinkto of phase to phase.”phase we as went from needs space the falling behind.”falling you are then not changing, you are if we that believe to because us important is that something is to industry this approach innovative inan part

Owner Perspectives Owner

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■ ■ ■ implementing approaches. these in faced have they challenges unique up brought each benefits, the on agree owners the While Prefabrication/Modular Using With Challenges prefabricating whole rooms. whole rooms. prefabricating to components prefabricating from shift them seen has He project.” every at required superintendent a of instead place in one builds multiple managing superintendent one with in ashop something build can they when multiplier aforce is prefabrication] [using and done, work get to workforce a find to trying are “They advantages. own their seeing are partners trade and contractors general their that reports He hours.” onsite versus hours offsite of goal a percentage up set even we cases some In project.’ onamount this of prefabrication the optimize to you say, want ‘We to starting are we prefabricate,’ to you want ‘I saying of instead where, point the to getting are

greater automation. greater improvementindustry with for opportunity an sees he and manual, very still also are companies that these notes owner healthcare also healthcare owner.healthcare by noted the challenge another issue. this address help to activity more expect Both modular companies is still limited. and prefabrication of chain supply the that find owners hospitality Accurate cost estimation is is estimation cost Accurate the issue, arelated On the of one and healthcare The • CONTINUED “Cost systems are not based on on are systems “Cost not based at the point where we are really we are where really point at the prefab. We are and not modular

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■ ■ ■ and the need for speed.” speed.” for need the and issues] [shortage workforce the to due naturally direction in this moving is industry The plants. building and modular shops prefabrication own their buy to starting companies construction major I see ... survival for direction in this moving is industry “The states, owner healthcare the fact, In approaches. these embrace will industry construction the buildings, of types their for that, agree All matures. industry the as a factor of less far be to them expect challenges these of most raise who owners the that note to important is It

these projects. from expect to what on guidelines big financial lenders with basic providing on working are who industry this in a group of part is he and construction, of mode this understand better to needs still sector financing the that challenge for the healthcare owner. prefabrication has also been a for design to processes their its parameters. You within work to have model. modular the of limitations the of terms in atrade-off is there The residential builder notes builder residential The Getting designers to change to change designers Getting The education owner finds that •

“Lenders are not used to are not used “Lenders the draw schedules.” the parameters and understand don’t for modular. They lending for prefab model.” inthe not accounted is cost folks. That those with associated overhead the all and onsite of people amount the Ihave half offsite, building the of half building Iam if example, an As to apples. apples comparing SmartMarket Report SmartMarket n

PREFABRICATION AND MODULAR CONSTRUCTION 2020 Methodology: ■ ■ ■ ■ ■ Prefabrication Research Study Construction Modular and in the study. study. in the participate to allowed were below listed companies of types the for worked who respondents Only TYPE FIRM survey. the to received were responses qualified 608 of A total Respondents sources: following the from collected was data 2019. of The November and in October professionals industry of construction online survey an using Study Modularization and 2019the Prefabrication conducted & Analytics Data Dodge SmartMarket Report SmartMarket

architecture)—165 responses and funding partners. both including research partners, memberships of association professionals construction and specialty. undertaken projects of types region, size, including categories, many by identified are panelists The US. the across contractors and architects of construction samples representative contain Panels Contractor and Architect & Analytics Data Dodge The Panels: Contractor and Architect Engineering—33 responses (excluding landscape Architecture Participation from the Dodge Database of Dodge Data & Analytics • • • • • • The Association of Union of Union Association The National Electrical Contractors Contractors Electrical National Mechanical ContractorsMechanical (MBI) Institute Building Modular American Institute of Steel Institute American Associated Builders and and Builders Associated Constructors (TAUC) (TAUC) Constructors Association (NECA) Association Association of America (MCAA) of America Association Construction (AISC) Construction Contractors (ABC)

Dodge Data &Analytics Data Dodge ■ ■ ■ Prefabrication and Modular Respondents but inquiry, of lines both for options response similar used questions survey some consistency, For construction. modular for and the other for prefabrication one inquiry, of lines two had project in this used survey The RESPONDENTS MODULAR PREFABRICATION AND homes. family two- or one be could projects their of 50% than more no addition, In years. three last inthe project construction modular or permanent prefabrication a in 2018, and project building non-residential or a multifamily on worked have to had respondents study, in the To participate PARTICIPATION FOR ADDITIONAL REQUIREMENTS TOTAL Manufacturers Builders/ Modular Contractors Trade GCs/CMs Engineers Architects

manufacturers—15 responses 219 responses fabricator/installer)— erector, enclosure building erector, concrete fabricator/ (category includes steel fabricator/ 176 responses site/geotech contractor)— manager, civil/ design-builder, general contractor, construction Modular builders/ Specialty/trade subcontractors GCs/CMs (category includes ­

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Prefabrication Prefabrication Line of Inquiry of Line 66% 66% 40% 62% 77% 11% ■ ■ ■ analytic variable in the analysis. analysis. in the variable analytic an as used is use BIM of Level USE BIM company. of type by respondents survey overall of percentages involved. groups all for thresholds significance statistical meets which discipline, by breakdown the is Below inquiry. of line prefabrication the to responded 66% other The survey. the of remainder the for inquiry of line construction to modular the respond and users those representing group the as serve to construction modular with experience enough had have to determined were respondents total 608 the of 34% instrument, survey in the questions screening each approach. of nature unique the to specifically tailored were questions other

50% of Projects of 50% Use BIM on 50% or More of Projects of More or 50% on BIM Use Than Less on BIM Use BIM: Use Not Do • • • • • • The table below shows the the shows below table The initial the into built rules on Based Modular Respondents: 55% Respondents: Modular 43% Respondents: Prefabrication Respondents: 33% Modular 46% Respondents: Prefabrication Respondents: 12%Modular 11% Respondents: Prefabrication

Modular Construction Modular Construction Line of Inquiry of Line 89% 60% 38% 23% 34% 34%

n SmartMarket Report Resources Organizations, websites and publications to help you get smarter about prefabrication and modular construction.

ACKNOWLEDGEMENTS:

We would like thank Bradley, a Premier Partner, for their vision in committing to this research and their support of our efforts.

Dodge Data & Analytics We also thank the Modular Building Institute, also a Premier Partner, for their Main Website: www.construction.com support, expertise and help with garnering participation in the study, both the Dodge Construction Central: www. quantitative online survey and participation in the qualitative owner interviews. construction.com/products We thank our Supporting Partners Pinnacle Infotech and the Mechanical Contractors Market & Competitive Intelligence: Association of America (MCAA) and our Contributing Partner Skender, without www.construction.com/products/ construction-market-data whose support this research and publication would not be possible. Sweets: www.construction.com/ We thank all of our association research partners, including the Associated Builders products/sweets and Contractors (ABC), the American Institute of Steel Contractors (AISC), the SmartMarket Reports: National Electrical Contractors Association (NECA) and the Association for Union www.construction.com/ Contractors for distributing the survey to their members. We again thank MCAA for toolkit/reports their participation in this effort as well.

We also thank the people who participated confidentially in the owners’ in-depth interviews for candidly sharing their experiences.

Finally, we thank all those who participated in the case studies, interviews and articles for sharing their insights, data and images to help the industry learn more about this vital topic.

www.bradleycorp.com www.modular.org

Produced with support from Premier Partners Contributing Partner Other Resources Bradley: www.bradleycorp.com Skender: www.skender.com BIMForum: https://bimforum.org The Modular Building Institute: Lean Construction Institute: Association Research Partners www.modular.org www.leanconstruction.org Associated Builders and National Institute of Building Sciences Supporting Partners Contractors: www.abc.org main website: www.nibs.org Pinnacle Infotech: www. American Institute of Steel National Institute of Building pinnaclecad.com Construction: www.aisc.org Sciences Off-site Construction Mechanical Contractors Association National Electrical Contractors Council: www.nibs.org/page/oscc of America: www.mcaa.org Association: www.necanet.org The Association for Union Contractors: www.tauc.org ■ Design and Construction Intelligence SmartMarket Report www.construction.com/toolkit/reports

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