By Gary Fleisher, the Modcoach
In recent years, the buzz around modular construction has been nothing short of deafening. Media outlets, construction experts, and paid speakers have been singing praises about its wonders.
However, much like the story of blindfolded people trying to describe an elephant, the perception of modular construction varies greatly depending on your viewpoint.
Picture a group of blidnfolded people, each touching a different part of the elephant.
The one in front feels an extra-long tail, as does the person at the back. Are those tree trunks or legs they’re touching? And what about those long rock-like projections? You see, everyone knows it’s big, but beyond that, there’s no universal point of reference for collaboration.
Enter the “Experts”
I recall an incident from four years ago when I invited a so-called modular home “expert” to tour a modular factory with me. As he gazed at the production line, he casually inquired about when the steel frame would be added to the house. To my surprise, it turned out he had only visited manufactured home plants, not true modular factories. I had to spend the rest of the tour explaining the distinctions to this “modular expert.”
Fast forward to the present, and I’ve come across numerous housing “experts” who had no idea what true modular manufacturing entails. These same experts were speakers at events and video conferences I attended, leaving me wondering which part of the elephant they were touching before addressing their audiences.
The problem intensifies when these experts share their views with eager investors and developers ready to embrace whatever they’re told. I know very few speakers who’ve actually been in the trenches of modular construction, and most are well-versed only in their narrow segment of the industry.
One common misconception propagated by these “experts” is that modular construction is 25% cheaper, finishes in half the time, and is readily available whenever a developer desires it. It sounds like the ideal solution for building projects like 5-story apartment buildings or hotels, right? Well, not quite.
In reality, I’m not aware of any modular factory in the world that can cut 25% off the cost of a site-built project, especially as lumber prices skyrocketed. And as for the claim of taking half the time, it’s a stretch. Yes, there may be time savings, but not to the extent of cutting the timeline in half, unless you’re only measuring the time from module arrival to occupancy.
Moreover, the idea of getting modules precisely when a developer needs them is a bit more complex. Factories can’t afford to sit idle, waiting for permits, financing, tax credits, and code approvals. Each of these factors can extend module production lead times by weeks, months, or even years, especially given the ongoing material and labor shortages.
Many modular factories used to take whatever projects came their way, ready to begin the process. If a factory produces 15 modules a week and a project requires 75 modules, that’s five weeks of exclusive production for that project. If the project faces a delay due to issues like financing or zoning, can the factory afford to wait? No, they’re businesses, and without product, they lose money, potentially leading to closure.
So, what is the reality of modular construction? It’s an excellent method for investors, developers, and builders to construct various buildings, from hotels and affordable housing projects to single and multi-family homes, ADUs, tiny houses, workforce housing, and more. However, there are limitations, and listening blindly to “experts” can lead you astray.
Before engaging with any modular factory for your project, take the time to find a consultant with a deep understanding of modular reality specific to your project. This reality often extends beyond factory personnel.
Consider this story: a developer spent countless hours and meetings discussing their project with a modular factory’s sales and management side, only to have the engineering department reject it. Unbeknownst to them, another factory within a hundred miles had successfully built similar projects but missed the opportunity due to the absence of a modular-savvy consultant.
Here’s the real scoop: modular construction can be slightly faster, cost-effective, and deliver a superior product compared to site-built projects. It’s also inherently more energy-efficient, greener, and sustainable. The modular factory becomes your partner, identifying issues and proposing solutions before construction begins. You can even visit the production line to witness your modules taking shape. Workers show up consistently, honing their skills in a stable environment.
In the words of Winston Churchill, “Indeed it has been said that democracy is the worst form of Government except for all those other forms that have been tried from time to time…” Similarly, modular construction may not be perfect, but it’s the best option among the alternatives that have been tried.
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Gary Fleisher, the Modcoach, author
