Skender, a Chicago based design and construction company listed as number 80 on the list of top US Building Contractors, has teamed with BuiltWorlds magazine to release a new research report titled 2019 Modular Construction Update. This report provides some interesting information on the current state of off-site and prefab construction.
The report highlights the fact that, according to Skender, “The global market for modular construction was valued at roughly $111 billion in 2018, according to a report by Zion Market Research. By 2025, that share is projected to increase to $175 billion, and growth has skyrocketed in the past year alone. In a recent survey of BuiltWorlds members, 79% of respondents indicated that they anticipate modular construction’s market share to increase at a faster rate over the next 5 years than it has over the past 5 years, with 21% expecting growth at a constant rate.”
The report illustrates that the expansion potential for building type usage of modular, prefab and off-site construction lies in the following percentages across the industry. Leading the pack is multi-family units at 48%, followed by the hospitality industry at 21%, single-family housing at 12%, healthcare at 10%, other at 5%, and retail and office at 2% each.
The major benefits for the usage of modular production, according to the report, are reduction in construction schedule, reduction of construction costs, safety in the construction cycle, and higher quality products. Additionally, with the current looming labor shortages in the industry, off-site construction is one way to meet that challenge.
The report illustrates some of the domestic companies that are currently using the systems across the various markets in the US. Construction Citizen has previously reported on the production of healthcare pods for a major hospital expansion in Houston and Skenders’ pre-fab manufacturing operation in Chicago. Additionally, we have noticed that major hospitality chains like Marriott have committed to offsite and modular production for its hotel facilities around the US.