Joanna Schwartz, the CEO of Quartz Properties, a real estate development company that builds attainably priced modern modular residences recently talked about modular’s role in tomorrow’s housing needs for Forbes.
A major construction industry pain point affecting home costs and production is a substantial labor shortage. In fact, labor scarcity ranked as a top issue impacting the construction industry, according to a survey of 400 industry executives, conducted by McKinsey. Felt across the board, the U.S. Chamber of Commerce’s “Commercial Construction Index” for the third quarter of 2021 found that more than half of contractors expressed a high level of difficulty in finding adequately skilled labor.
An issue prior to Covid-19’s onset, the pandemic has only exacerbated the trend, and increased housing costs are not expected to rectify anytime soon. As other sectors are recovering from employment hits caused by the pandemic, construction jobs remain hard to fill.
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Modular May Help To Solve The Labor Shortage
With labor scarce and demand high, the industry must adapt to new methods to keep pace. Finding solutions that maximize labor is paramount for future success.
Modular construction, a practice that has been popular in other countries for years but has yet to make a large impact on the U.S. market, may help to steer the industry back to more stable ground. In 2015, for instance, Sweden led the market with 84% of its homes containing prefabricated timber elements. At that same time, the U.S. lagged behind at only 5%.
The way I see it, there is huge potential for modular to disrupt the U.S. residential real estate construction market, specifically as a labor shortage solution. At Quartz, we strongly believe in the opportunity modular brings. We are involved in the entire process, from land acquisition to home builds.
One of the greatest advantages of modular is the ability to use labor located far from building sites. Rather than seeking labor in areas with a desperately limited supply, modular builds can be produced almost entirely in labor-dense areas, then transported. This labor arbitrage implementation is a major factor in the case for modular.
CLICK HERE to read Joanna’s entire Forbes article
Gary Fleisher is Editor in Chief of Modular Home Source. Email at [email protected]
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