The modular construction market is reported on MarketWatch to experience an increased presence to meet the “demand for complex structures at affordable rates, rapid urbanization, and industrialization.” As of 2018, modular construction began staking out its segment in the construction market. Reportedly, the trend is going to continue growing through 2023.
As reported, the “permanent modular buildings” are and will continue to lead the modular construction market over its other segment, “relocatable modular buildings.” These permanent modular projects are creating savings in both time and labor with a remarkable reduction in construction costs. It is forecasted that the housing market will be the leader of instituting modular construction dwellings.
While the highest percentage growth may be seen in the Asia Pacific region, modular construction is making its presence known across the globe. Countries experiencing emerging economies are looking for “modern construction techniques.” Construction companies in the United States “are struggling to build enough residential and commercial buildings to fit demand,” according to a report on eSUB.
Major cities, like New York City, are looking for ways to offer new homes while creating a greener environment and lowering the cost of living. Modular construction is delivering these solutions and more.
Modular construction excited New York City with its largest modular hotel pieced together in 2017 as seen on Building Design & Construction. While it was forecasted that months would be saved compared to traditional construction, the number of truck trips were predicted to be “reduced by 1,200 compared to traditional building methods.” Reduced truck trips around the congested city streets is something that should make all of us city dwellers happy. Not to mention the savings on fuel, equipment maintenance, and avoided traffic delays seen by the contractor.
While other countries are presently leading in the modular construction arena, the trend is extending into the United States according to Stites & Harbison, PLLC. Urbanization is rising in the United States, and there is high demand for affordable and sustainable housing in our major U.S. cities, which are consistently attracting new residents. New York City is one example, with various neighborhoods on a watch list for growth in 2019.
In May of 2018, New York City initiated its first step towards seeking modular construction proposals after keeping an eye on other cities, like Denver, Colorado and Los Angeles. New York began integrating modular construction projects to tackle their housing problems. It is now projected that modular construction will rise to 5% of all new commercial construction in North America by 2021.
According to Stites & Harbison, modular building production occurs in a controlled environment. Repetition of in-house production leads to increased quality along with decreased labor costs. Not to mention, time is also saved with the elimination of scheduling and coordinating on-site construction processes. Along with cost savings, modular construction has also led to greener projects and safer job sites.
Mitigating insurance liability of on-site accidents is a major attraction for contractors. Modular construction transfers unpredictable on-site risks to controlled offsite facilities. With the decrease of onsite accidents, lower premiums are being demanded with regards to liability coverage.
As of the last quarter of 2018, the Big Apple has joined in on the modular building revolution as reported by the New York Post. With projects already completed and more pieces being manufactured, some of New York’s pioneering architects are leading the charge. One such architectural firm is Dumbo-based Garrison Architects.
According to James Garrison, founder of Garrison Architects, modular construction is being seen as New York City’s solution to “housing, infrastructure, and enough money to pay for it.” It is only a matter of getting it down to a science, and companies are evolving their processes to increase production with less time and money involved.
As advanced AI is disrupting the world with exciting, innovative solutions for every industry, the Modular Construction Market is growing into a welcomed presence around the globe. This innovative industry has only just begun to help cities, like New York City, scale while creating a greener, more sustainable environment.
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