Overview of the Characteristics of the Modular Industry and Barriers to its Increased Market Share
Keywords:Project delivery, Questionnaire, Survey, Barriers, Modular construction, Industry characteristics
Modular and offsite construction approaches reduce project duration and cost by synchronizing offsite and onsite work. Project activities are undertaken in a controlled offsite facility to minimize the effects of inclement weather and site disruptions, while meeting safety and quality requirements. To study the characteristics of modular and offsite construction, questionnaires have been conducted during the last decade by many organizations, including the Modular Building Institute (MBI), the Buildoffsite campaigning organization in the United Kingdom, the Canadian Manufactured Housing Institute, the National Institute of Building Sciences, McGraw-Hill Construction, and the Fails Management Institute. This paper introduces comprehensive analysis of the results of a questionnaire survey carried out in collaboration between members of the Department of Building, Civil & Environmental Engineering at Concordia University, the Modular Building Institute, NRB Inc., and the Department of Civil & Environmental Engineering at the University of Alberta. The questionnaire focuses on two issues: (1) the characteristics of the modular and offsite construction industry, and (2) the barriers against increased market share in this industry. For the latter, an effort was made to address a set of five factors identified in a workshop on the topic of challenges and opportunities for modular construction in Canada held in Montréal in 2015 to analyze barriers to growth of modular construction in the Canadian context. Key findings of this survey include requests for use of a separate building code for modular construction design, innovative financing and insurance solutions, standards that consider procurement regulations, and for financial institutions to create lending programs suited for modular construction.
Rausch, C., Edwards, C., and Haas, C. (2020). Benchmarking and improving dimensional quality on modular construction projects–A case study. International Journal of Industrialized Construction, 1(1), 2-21.https://doi.org/10.29173/ijic212
Ghannad, P., Lee, Y.C. and Choi, J.O. (2020). Feasibility and implications of the modular construction approach for rapid post-disaster recovery. International Journal of Industrialized Construction, 1(1), 64-75. https://doi.org/10.29173/ijic220
Modular Building Institute (MBI). (2015). Permanent modular construction annual report. Charlottesville, Virginia, USA, online: https://www.triumphmodular.com/wp-content/uploads/2020/06/2015-PMC-RB-Annual-Reports.pdf
Pan, W., Zhang, Z. Q., Yang, Y. (2020). A Glossary of Modular Integrated Construction. The University of Hong Kong, Hong Kong.
Gibb, A., Pendlebury, M., (2006). Glossary of Terms. Build Offsite. https://offsite.lboro.ac.uk/-docs/Buildoffsite_glossary_V1.6b_2006.pdf
Haas, C. T., O’Connor, J. T., Tucker, R. L., Eickmann, J. A., Fagerlund, W. (2000). Prefabrication and Preassembly Trends and Effects on the Construction Workforce. Report No. 10, Center for Construction Industry Studies, University of Texas at Austin, Austin, Texas, USA.
Miller, T. D. (1998). Defining modules, modularity and modularization: evolution of the concept in a historical perspective. Proceedings of the 13th IPS Conference of Design for Integration in Manufacturing, Fuglsoe, Denmark.
Tatum, C. B., Vanegas, J. A., Williams, J. M. (1987). Constructability Improvement Using Prefabrication, Preassembly, and Modularization. Report from Construction Industry Institute, University of Texas, Austin, Texas, USA.
Construction Industry Institute (CII). (2002). Prefabrication, Preassembly, Modularization, and Offsite Fabrication in Industrial Construction: A Framework for Decision-Making. Report from University of Texas, Austin, TX, USA.
Construction Industry Institute (CII). (2004). Prefabrication, Preassembly, Modularization, and Offsite Fabrication (PPMOF)–Instructor’s Guide. Report from University of Texas, Austin, TX, USA.
Schoenborn, J. M. (2012). A Case Study Approach to Identifying the Constraints and Barriers to Design Innovation for Modular Construction. Master of Science in Architecture, Virginia Polytechnic Institute and State University: Blacksburg, VA, USA.
Lawson, M., Ogden, R., Goodier, C. (2014). Design in Modular Construction. CRC Press.
Buildoffsite. (2006). Offsite construction industry survey. Report from Buildoffsite organization, 60 pages, London, UK, online: https://www.buildoffsite.com/content/uploads/2015/03/Offsite-survey-2006.pdf
Pan, W., Yang, Y., Zhang Z.Q., Chan, Y. S. (2019). Modularization for Modernization: A Strategy Paper Rethinking Hong Kong Construction. Report from The University of Hong Kong, Hong Kong. https://www.miclab.hk/mfm
Pan, W., Zhang, Z. Q., Xie, M. C., Ping, T.Y. (2020). Modular Integrated Construction for High-rises: Measured Success. The University of Hong Kong, Hong Kong. https://www.miclab.hk/success
The Building and Construction Authority (BCA). (2017). Design for Manufacturing and Assembly (DfMA), Prefabricated Prefinished Volumetric Construction. https://www.bca.gov.sg/professionals/technology/others/ppvc_guidebook.pdf
Pan, W., Gibb, A.G.F., Dainty, A.R.J. (2007) Perspectives of UK house builders on the use of offsite modern methods of construction. Construction Management and Economics, 25(2), 183-194. https://doi.org/10.1080/01446190600827058
Pan, W., Gibb, A.G.F., Dainty, A.R.J. (2012) Strategies for Integrating the Use of Offsite Production Technologies in Housebuilding. ASCE Journal of Construction Engineering and Management, 138(11), 1331-1340, https://doi.org/10.1061/(ASCE)CO.1943-7862.0000544
McGraw-Hill. (2011). Prefabrication and modularization; Increasing Productivity in the Construction Industry. Bedford, MA, USA. https://www.modular.org/htmlPage.aspx?name=McGrawHill_Prefabrication
FMI. (2013). Survey results of prefabrication and modularization in construction. Raleigh, USA. https://www.fminet.com/insights/fmis-2013-prefabrication-and-modularization-in-construction-survey/
National Institute of Building Sciences. (2014). Report of the Results of Off-Site Construction Industry Survey. Washington, DC, USA. https://www.nibs.org/files/pdfs/NIBS_OSCC_SoftwareSurvey_2014.pdf
Smith, R. E., Rice, T. (2015). Permanent Modular Construction: construction performance. Proceedings of Modular and Offsite Construction (MOC) Summit and 1st International Conference on the Industrialization of Construction (ICIC), Edmonton, AB, Canada, May 19-21, pp. 14-21. https://doi.org/10.29173/mocs172
Smith, R. E., Rice, T. (2015). Permanent modular construction; process, practice, performance. MBI Modular Building Institute and University of Utah, Integrated Technology in Architecture Center, College of Architecture and Planning, Salt Lake City, Utah, USA. https://www.modular.org/documents/document_publication/2015_Off-Site_PMC_Report.pdf
Canadian Manufactured Housing Institute. (2016). CMHI Manufactured Building Survey. Ottawa, Canada. https://www.manufacturedhomepronews.com/wp-content/uploads/2017/06/cmhi_2015_annualCanadianShipmentReportManufacuredHousingDataResearchDailyBusinessNewsMHProNews.pdf
Modular Building Institute (MBI). (2017). Modular Advantage for the commercial modular construction industry (Q3); RB annual statistical data. Virginia, USA. http://www.modular.org/documents/Modular_Advantage/ModularAdvantage_3Q_2017_reduced.pdf
Smith, R., Rupnik, I. (2018). 5 IN 5 Modular growth initiative research roadmap recommendations. Special report by Modular Building Institute. https://www.modular.org/documents/document_publication/2018_1019%205in5%20Deliverable.pdf
Smith, R. E. Quale, J.D. (2017). Offsite Architecture: Constructing the Future. Routledge publications, Taylor & Francis, New York.
Razkenari, M., Fenner, A., Shojaei, A., Hakim, H., Kibert, C. (2020). Perceptions of offsite construction in the United States: An investigation of current practices. Journal of Building Engineering, 29, 101138. https://doi.org/10.1016/j.jobe.2019.101138
Dodge Data and Analytics. (2020). Prefabrication and modular construction 2020: Smart market report. Special report by Dodge data and analytics and MBI. https://www.modular.org/documents/public/PrefabModularSmartMarketReport2020.pdf
Salama T, Moselhi O, Al-Hussein M. (2018). Modular Industry Characteristics and Barriers to its Increased Market Share. Modular and Offsite Construction (MOC) Summit Proceedings, Hollywood, Florida, USA, March 22-25, pp. 8-15. https://doi.org/10.29173/mocs34
Salama T, Moselhi O, Al-Hussein M. (2018). Modular Industry Characteristics & Barriers to its Increased Market Share. Modular Building Institute. https://www.modular.org/documents/documen t_publication/Modular_Industry_Characteristics_and_Barrier_to_its_Increased_Market_Share.pdf
Salama, T. (2019). Optimized planning and scheduling for modular and offsite construction. PhD thesis, Concordia University, Montreal, Canada.
Canadian Construction Innovations (CCI). (2015). Challenges and opportunities for modular construction in Canada. Workshop Summary Report, Concordia University, the Modular Building Institute, Canadian Construction Innovations, and University of Alberta. https://www.coursehero.com/file/52660662/Challenges-and-Opportunities-for-Modular-Construction-in-Canadapdf/
Smith, R., Rupnik, I. (2018). 5 IN 5 Modular growth initiative research roadmap recommendations. Modular Building Institute (MBI). https://www.modular.org/documents/document_publication/2018_1019%205in5%20Deliverable.pdf
Smith, R. E. (2010). Prefab Architecture: A Guide to Modular Design and Construction. Wiley Publications, Hoboken, New Jersey, USA.
Modular Building Institute (MBI), Piper, C. A. (2015). Introduction to Commercial Modular Construction. Virginia, USA.
Website of modular building institute (MBI). https://www.modular.org/HtmlPage.aspx?name=foundation_new
PrefabAUS. (2017). Built Offsite magazine. Boston Publishing Pty Ltd. Richmond, Victoria, Australia, Issue 6.
PreFab New Zealand (PrefabNZ) website. http://www.prefabnz.com/Events
Buildoffsite website, online. https://www.buildoffsite.com/newsletters/
Monash University, PrefabAUS. (2017). Handbook for the Design of Modular Structures. Victoria, Australia.
Modular Building Institute (MBI). (2020). Breaking down the modular building code. Online exclusive article. https://www.modular.org/HtmlPage.aspx?name=MA-oi-modular-building-codes&fbclid=IwAR1eEKJSWuapEM8drgDxE5Ypddg1BXY-H4RHgOaYOyk3VN3GJmab03Fe8bk
Modular Building Institute (MBI). (2019). Modular Advantage Magazine. Second Quarter 2019, Virginia, USA. http://www.modular.org/documents/Modular_Advantage/MA_Q2-19-reduced.pdf
International Code Council. (2019). ICC G5-2019 Guideline for the Safe Use of ISO Intermodal Shipping Containers Repurposed as Buildings and Building Components. https://shop.iccsafe.org/icc-g5-2019-guideline-for-the-safe-use-of-iso-intermodel-shipping-containers-repurposed-as-buildings-and-building-components.html
Doermann J., Finzel K., Barrot J. (2020). High-rise modular construction: A review of the regulatory landscape and considerations for growth. Standards research report prepared by Arup to CSA. https://www.csagroup.org/wp-content/uploads/CSA-Group-Research-High-Rise-Modular-Construction.pdf
MBI. (2021). March 2021 government affairs update. https://www.modular.org/HtmlPage.aspx?name=MA-oi-Mar2021-update
Fannie Mae. (2020). Multifamily Modular Construction Toolkit. Special report by Fannie Mae, MBI & NIBS. https://multifamily.fanniemae.com/media/13576/display
Salama, T., Figgess, G., Elsharawy, M., El-Sokkary, H. (2020). Financial Modeling for Modular and Offsite Construction. Proceedings of the 37th International Symposium on Automation and Robotics in Construction (ISARC 2020), Kitakyushu, Japan. https://doi.org/10.22260/ISARC2020/0149
How to Cite
Copyright (c) 2021 Tarek Salama, Osama Moselhi, Mohamed Al-Hussein
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
Articles in the International Journal of Industrialized Construction are distributed under a Creative Commons Attribution-NonCommercial-NoDerivs (CC BY-NC-ND) license that allows others to download these articles and share them with others with an acknowledgement of the work's authorship and initial publication in this journal. The journal articles may not be changed in any way or used commercially.