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SmartMarket ReportPrefabricationand Modularization:Increasing Productivity in the Construction IndustryPremierPartners:Par...
■ Design and Construction Intelligence              SmartMarket Report              McGraw-Hill Construction              ...
SmartMarket Report                                                                                                     Int...
SmartMarket Report                                                                                                        ...
Front cover:                                                                                                     The Summi...
Executive Summary                                                                                                 Everythi...
Executive Summary             CONTINUED                                                                                   ...
Recommendations                                                                                                 The resear...
Data:­Section Hed1                                                                                                        ...
Data:­Market Activity and Opportunity                                                                                     ...
Mhc prefabrication modularization_smr_2011
Mhc prefabrication modularization_smr_2011
Mhc prefabrication modularization_smr_2011
Mhc prefabrication modularization_smr_2011
Mhc prefabrication modularization_smr_2011
Mhc prefabrication modularization_smr_2011
Mhc prefabrication modularization_smr_2011
Mhc prefabrication modularization_smr_2011
Mhc prefabrication modularization_smr_2011
Mhc prefabrication modularization_smr_2011
Mhc prefabrication modularization_smr_2011
Mhc prefabrication modularization_smr_2011
Mhc prefabrication modularization_smr_2011
Mhc prefabrication modularization_smr_2011
Mhc prefabrication modularization_smr_2011
Mhc prefabrication modularization_smr_2011
Mhc prefabrication modularization_smr_2011
Mhc prefabrication modularization_smr_2011
Mhc prefabrication modularization_smr_2011
Mhc prefabrication modularization_smr_2011
Mhc prefabrication modularization_smr_2011
Mhc prefabrication modularization_smr_2011
Mhc prefabrication modularization_smr_2011
Mhc prefabrication modularization_smr_2011
Mhc prefabrication modularization_smr_2011
Mhc prefabrication modularization_smr_2011
Mhc prefabrication modularization_smr_2011
Mhc prefabrication modularization_smr_2011
Mhc prefabrication modularization_smr_2011
Mhc prefabrication modularization_smr_2011
Mhc prefabrication modularization_smr_2011
Mhc prefabrication modularization_smr_2011
Mhc prefabrication modularization_smr_2011
Mhc prefabrication modularization_smr_2011
Mhc prefabrication modularization_smr_2011
Mhc prefabrication modularization_smr_2011
Mhc prefabrication modularization_smr_2011
Mhc prefabrication modularization_smr_2011
Mhc prefabrication modularization_smr_2011
Mhc prefabrication modularization_smr_2011
Mhc prefabrication modularization_smr_2011
Mhc prefabrication modularization_smr_2011
Mhc prefabrication modularization_smr_2011
Mhc prefabrication modularization_smr_2011
Mhc prefabrication modularization_smr_2011
Mhc prefabrication modularization_smr_2011
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Mhc prefabrication modularization_smr_2011

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Modular Construction Report from the folks at McGraw-Hill. Report reflects data on the advantages of systems built modular construction techniques and solutions.

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Transcript of "Mhc prefabrication modularization_smr_2011"

  1. 1. SmartMarket ReportPrefabricationand Modularization:Increasing Productivity in the Construction IndustryPremierPartners:Partners:
  2. 2. ■ Design and Construction Intelligence SmartMarket Report McGraw-Hill Construction Prefabrication and Modularization: President Increasing Productivity in Keith Fox the Construction Industry Vice President, Product Development SmartMarket Report About McGraw-Hill Kathryn E. Cassino Executive Editor Construction Harvey M. Bernstein, F.ASCE, LEED AP McGraw-Hill Construction McGraw-Hill Construction Editorial Directors (MHC), part of The McGraw-Hill Research & Analytics/ Industry Insights & Alliances John Gudgel Companies, connects people, Michele A. Russo, LEED AP projects and products across the Vice President, Industry Insights & Alliances Managing Editor design and construction industry, Harvey M. Bernstein, F.ASCE, LEED AP Donna Laquidara-Carr, LEED AP serving owners, architects, Senior Director, Research & Analytics Director, engineers, general contractors, Burleigh Morton Design & Production subcontractors, building product William Taylor manufacturers, suppliers, dealers, Director, Partnerships & Alliances John Gudgel Art Director/Production Manager distributors, and adjacent markets. Alison Lorenz A reliable and trusted source Director, Green Content & Research Communications for more than a century, MHC Contributing Art Directors Michele A. Russo, LEED AP Segal Savad Design has remained North America’s Harry Segal, Principal/Creative Director leading provider of construction Reproduction or dissemination Alex Flannery, Designer project and product information, of any information contained Editor plans and specifications, industry herein is granted only by contract Enver Fitch, LEED Green Associate news, market research, and or prior written permission from industry trends and forecasts. In Contributor McGraw-Hill Construction. recent years, MHC has emerged Bruce Buckley as an industry leader in the Copyright © 2011, McGraw-Hill Research Project Manager critical areas of sustainability and Construction, ALL RIGHTS RESERVED Dana Gilmore, MRA, PRC interoperability as well. Research Analyst In print, online, and through Mevhibe Barton events, MHC offers a variety of For further information on this tools, applications, and resources SmartMarket Report or for any that embed in the workflow of our in the series, please contact: customers, providing them with McGraw-Hill Construction the information and intelligence Research & Analytics they need to be more productive, Crosby Drive, Suite 201 successful, and competitive. Bedford, MA 01730 Backed by the power of Dodge, 1-800-591-4462 Sweets, Architectural Record, MHC_Analytics@mcgraw-hill.com Engineering News-Record (ENR), GreenSource and SNAP, McGraw-Hill Construction serves Environmental Benefits Statement: This report is printed using more than one million customers soy-based inks on New Leaf ReincarnationMatte, made with 100% recycled within global construction fiber, 50% post-consumer waste and processed chlorine-free with a community. To learn more, visit cover on New Leaf Primavera Gloss, made with 80% recycled fiber, 40% us at www.construction.com. post-consumer waste, processed chlorine-free. By using this environmentally- friendly paper, McGraw-Hill Construction saved the following resources (calculations provided by New Leaf Paper, based on research conducted by Environmental Defense Fund and other members of the Paper Task Force): 20 fully grown 9,200 gallons 6 million 559 pounds of 1,910 pounds trees of water BTUs of energy solid waste of greenhouse gasesSMR0411_Masthead.indd 2 4/29/11 1:28:54 PM
  3. 3. SmartMarket Report Introduction P refabrication and modulariza- Last year, in the Green BIM SmartMarket Prefabrication and Modularization: Increasing Productivity in the Construction Industry tion are construction processes Report (2010), we looked at the conver- that the industry has used for gence of the BIM and green trends and centuries. So why in 2011 is found that construction professionals who McGraw-Hill Construction conducting for- use BIM on green projects are more likely ward-thinking market research on what to do model-driven prefabrication than many consider to be old, well-established non-green BIM practitioners. These green methods used on construction projects? BIM practitioners saw model-driven prefab Harvey M. Bernstein Well, to paraphrase the song, everything as a way to design and construct greener F.ASCE, LEED AP old about prefab and modular is new again. buildings and have a greener site. Vice President Industry Insights & Alliances This reemergence of prefab and modular Now, in this SmartMarket Report, we McGraw-Hill Construction as a “new” trend is tied to the rise of BIM take a new look at prefabrication and and green building, critical new trends modularization and their impact on a major identified by McGraw-Hill Construction and initiative within our industry—improving other industry leaders. productivity. Through an Internet survey The emergence of building information of hundreds of AEC professionals, we modeling (BIM) is influencing design and gathered data on the impact of prefabri- construction processes and how project cation and modularization on key industry teams collaborate. In the Business Value productivity metrics including project of BIM SmartMarket Report (2009), we schedules, costs, safety, quality, eliminat- found that a key benefit of BIM is enabling ing waste and creating green buildings. the increased use of prefabrication and Some of the most significant productivity John E. Gudgel Director, modularization, which in turn improves findings from prefabrication and modular- Partnerships & Alliances worksite productivity and overall project ization users include the following: McGraw-Hill Construction ROI. Contractors were especially excited, ■■66% report that project schedules are with 77% believing that BIM would allow decreased—35% by four weeks or more. them to use prefabrication on larger, more complex projects in the future. ■■65% report that project budgets are The phenomenal growth in green build- decreased—41% by 6% or more ing has also had an undeniable impact on ■■77% report that construction site waste the construction industry. Just last year, in is decreased—44% by 5% or more. Green Outlook 2011 we estimated that up to 35% of new nonresidential construction We would like to thank our premier part- is green, representing a $54 billion market ners including NIST, the Modular Building Donna Laquidara-Carr, opportunity that will grow to $120 billion or Institute, Island Companies, and Syntheon; Ph.D., LEED AP Manager, Green Research more by 2015. and our other corporate & association part- and Communications ners for supporting this study. McGraw Hill Construction Harvey M. Bernstein, F.ASCE, Professor with the University of ability. He has over 17 years of direction, analysis and content LEED AP, has been a leader in Reading’s School of Construction experience in technology project to the SmartMarket Reports, the engineering and construc- Management and Engineering in management in the computer and examining critical construction tion industry for over 30 years. England. Bernstein has an M.B.A. telecommunications industries. trends including BIM and green Currently, he has lead responsibil- from Loyola College, an M.S. in John has an M.S. in eCommerce building. Previously, with MHC’s ity for MHC’s market research engineering from Princeton Uni- from George Mason University, Dodge division, she has nearly group as well as MHC’s thought versity and a B.S. in civil engineer- an M.S. in Telecommunications twenty years of experience in the leadership initiatives in areas such ing from the New Jersey Institute from the University of Colorado construction news industry. Since as green building, BIM, interop- of Technology. and a B.S. in Geological Engineer- 2005, as Editorial Training and erability, innovation and global ing from the Colorado School of Policy Manager, she educated a construction markets. Previously, John E. Gudgel is responsible for Mines. team of over 250 reporters on key Bernstein served as the President managing MHC’s relationships trends in the industry, including and CEO of the Civil Engineer- with both national and regional Donna Laquidara-Carr, Ph.D., public-private partnerships and ing Research Foundation. He industry associations. He also pro- LEED AP, has been Manager of the evolution of project delivery currently serves as a member duces and offers thought leader- Green Research and Communica- methods. Donna has a Ph.D. from of the Princeton University Civil ship on construction technology, tions at McGraw Hill Construc- Tulane University, an M.A. from and Environmental Engineering managing MHC’s SmartMarket tion since December 2008. In that Boston University and a B.A. from Advisory Council and as a visiting Reports on BIM and Interoper- capacity, she provides editorial Middlebury College. McGraw-Hill Construction    1  www.construction.com SmartMarket ReportsSMR0411_Letter-bio.indd 1 5/2/11 3:11:15 PM
  4. 4. SmartMarket Report PREFABRICATION AND MODULARIZATION: INCREASING PRODUCTIVITY IN THE CONSTRUCTION INDUSTRY TABLE OF CONTENTS 4 Executive Summary 4 Executive Summary 6 Recommendations 7 Data 8 Market Activity and Opportunity 8 Sectors with Opportunity for Prefabrication/Modularization 10 Building Sectors with the Most Significant Future Opportunity for Prefabrication/Modularization 12 Users of Prefabrication/Modularization 13 Levels of Use of Prefabrication/Modularization: Today and in the Future for Current Users 14 Future Activity by Current Non-Users of Prefabrication/Modularization 14 Firm Size of Prefabrication/Modularization Users 18 Productivity 18 Impact on Project Schedule 19 Impact on Project Budget 20 Impact on Site Safety Photo courtesy of Liam Frederick (cover); Photo courtesy of Perkins Wil (opposite page left); Photo courtesy of the Warrior Group (opposite page right) 21 Impact on Purchase and Installation Costs for Materials 22 Expected Impact on Project Schedule According to Prefabrication/Modularization Non-Users 22 Impact on Project Budget According to Non-Users 23 Impact on Reducing Onsite Resources According to Non-Users 23 Impact on Improving Project Quality According to Non-Users 29 Influence Factors 29 Drivers for Use of Prefabrication and Modularization 30 Factors Driving Future Use of Prefabrication/Modularization for Non-Users 31 Non-Users’ Current Reasons for Not Using Prefabrication/Modularization on Projects 32 Users’ Current Reasons for Not Using Prefabrication/Modularization on Some Projects 33 Prefabricated and Modular Building Elements 33 Influence of Job Site Conditions 34 Most Commonly Used Prefabricated and Modular Building Elements 39 Green Building 39 Using Prefabrication/Modularization on Green Building Projects 39 Construction Waste 40 Materials 41 Model-Driven (BIM) Prefabrication 41 Usage 42 Drivers SmartMarket Reports McGraw-Hill Construction  2  www.construction.comSMR0411_ToC.indd 2 4/29/11 3:33:48 PM
  5. 5. Front cover: The Summit at Queens College Student Residence Hall, Queens, NY From left to right: Texas Health Harris Methodist Alliance Hospital, Fort Worth, Texas; Fort Sam Houston Medical Education and Training Complex Barracks, San Antonio, Texas CONTENTS 46 Contractors 46 Usage 47 Productivity 48 Drivers 49 Architects and Engineers 49 Usage 50 Drivers and Productivity 43 Data Sidebar: Drivers Behind Owner Adoption of Prefabrication and Modularization Sidebars 9 Brief History of Prefabrication/Modularization 25 Lean Construction Thought Leader Interviews 15 J. Doug Pruitt, Chairman and CEO, Sundt Construction 24 Gregory Howell, Cofounder and Managing Director, Lean Construction Institute Case Studies 16 Speeding Delivery to Meet a Military Mission: Fort Sam Houston Medical Education and Training Complex Barracks, San Antonio, Texas 26 Pushing the Envelope in Prefabrication: Texas Health Harris Methodist Alliance Hospital, Fort Worth, Texas 36 Innovation in Prefabrication to Achieve a Tight Schedule and Green Results: The Summit at Queens College Student Residence Hall, Queens, New York 51 Glossary 52 Methodology 53 Resources McGraw-Hill Construction 3     www.construction.com SmartMarket ReportsSMR0411_ToC.indd 3 4/29/11 3:33:56 PM
  6. 6. Executive Summary Everything Old Has Become New Again! Building information modeling (BIM), modern manufacturing PREFABRICATION AND MODULARIZATION: INCREASING PRODUCTIVITY IN THE CONSTRUCTION INDUSTRY methods, sustainability goals and recognized productivity gains rejuvenate centuries old-construction processes. Prefabrication and modular construction are processes that have been used by generations of construction professionals. Over the past century, these processes have developed a stigma of “cheapness” and “poor quality.” However, through modern technology, that image has changed. Now it’s a key component of the drive to improve construction industry productivity. Adoption and Usage Percentage of Prefabrication/ Prefabrication and modular building processes are Modularization Users Today (2011) not new activities—63% of those that are using these Source: McGraw-Hill Construction, 2011 processes have been doing so for five years or more. User Non-User Given that prefabrication/modular construction has been around for many years, it is not unexpected that Contractor 85% of industry players today are using these processes 84% on some projects—including 90% of engineers, 84% of 16% contractors and 76% of architects. Engineer By 2013, nearly all players (98%) expect to be doing 90% some prefabrication/modularization on some projects. 10% Among users, usage today is fairly low. Only about a third of users (37%) have been using it at a high or very Architect high level (more than 50% of projects). Over the next 76% two years, usage on projects is expected to moderately 24% grow, with high or very high usage reaching 45% by 2013. Among all players surveyed, the highest level of current Current Drivers to Use of and future usage is among fabricators, mechanical Prefabrication/Modularization contractors and design-builders. (By Player) Among all players, the primary reason they are Source: McGraw-Hill Construction, 2011 not using prefabrication and modularization on some Contractor Engineer Architect or all of their projects is that the architect did not design it into their projects. Owner resistance was the primary Improve Productivity reason given by architect users (39%) and non-users 92% (54%) for not including prefabrication and modularization 70% into their designs. 68% BUILDING SECTORS AND AREAS OF USAGE Competitive Advantage Adopters are using prefabrication/modular building 85% processes on a wide variety of commercial building proj- 60% ects. In particular, respondents today are using it on 52% healthcare facilities (49%), college buildings and dormi- Generates Greater ROI tories (42%) and manufacturing buildings (42%). These 70% respondents see the most future opportunity in health- 43% care facilities (14%), hotels and motels (11%), commercial 40% warehouses (11%) and other building types (10%) that included data centers, prisons, power plants and oil refin- Owner/Client Demand eries. These opportunities do vary by player type. 31% 51% 35% SmartMarket Reports McGraw-Hill Construction   4  www.construction.comSMR0411_ExecSum.indd 4 4/29/11 1:22:26 PM
  7. 7. Executive Summary CONTINUED Level of Decrease in Project 40% Within a building, prefabrication and modular Schedule Due to Prefabrication/ PREFABRICATION AND MODULARIZATION: INCREASING PRODUCTIVITY IN THE CONSTRUCTION INDUSTRY construction are used in a variety of areas but most Modularization often in the building superstructure (27%), mechanical, Source: McGraw-Hill Construction, 2011 35% 30% electrical and plumbing (MEP) systems (21%) and exterior walls (20%). When deciding whether or not to use prefabrication or modularization, the most important factor is the 20% job site accessibility (58%) followed closely by the number of building stories (53%) and the type of building 10% 14% exterior (52%). 10% 7% USAGE DRIVERS The most important driver to current usage of prefab- 0% rication and modularization is its ability to improve 1 Week 2 Weeks 3 Weeks 4 Weeks productivity (82%). This is particularly important to or More contractors (92%). All players also see these processes as making them more competitive in the marketplace (75%). Level of Decrease in Project Budget Due to Prefabrication/Modularization 30% Productivity Improvements— Source: McGraw-Hill Construction, 2011 Primary Future Driver Architects, engineers and contractors are also very closely aligned in the belief that the primary drivers to 24% 20% future usage will be the improvements that prefabrication and modularization can provide to elements of productiv- 19% 17% ity including project schedule, cost, safety and quality. IMPROVED PROJECT SCHEDULES 10% A key metric of productivity is the project schedule. 66% of user respondents indicated that prefabrication/modu- larization processes have a positive impact on project 5% schedules, with 35% of those respondents indicating that 0% it can reduce the project schedule by four weeks or more. Decreased Decreased Decreased Decreased 1%–5% 6%–10% 11%–20% More Than 20% REDUCED COST AND BUDGETS Another key productivity metric is project cost as measured by the project budget. 65% of user GREEN BUILDING AND WASTE REDUCTION respondents indicated that the use of prefabrication/ Green was not a major driver to prefabrication and modu- modularization had a positive impact on project budgets, larization adoption. However, when asked about elements with 41% indicating that it reduced project budgets by of green, including site waste and amount of materials 6% or more. used, a different story emerges. 76% of respondents indi- cate that prefabrication/modular construction reduces SITE SAFETY site waste—with 44% indicating that it reduced site waste More respondents (34%) believe that prefabrication and by 5% or more. In addition, 62% of respondents believe modularization can improve site safety versus those that these processes reduce the amount of materials who think the practices reduce safety (10%). Most users used—with 27% indicating prefabrication/modularization believe that these processes are safety neutral (56%). reduced materials used by 5% or more. McGraw-Hill Construction 5     www.construction.com SmartMarket ReportsSMR0411_ExecSum.indd 5 4/29/11 1:22:27 PM
  8. 8. Recommendations The research findings have varying implications for different industry players. Owners: Reduce project design and construction, help achieve green objec- PREFABRICATION AND MODULARIZATION: INCREASING PRODUCTIVITY IN THE CONSTRUCTION INDUSTRY Consider using schedules—sometimes engineers should evaluate tives should be promoted prefabrication and by a month or more. the quality and availability and emphasized in bids. modularization Decrease purchase and of prefabricated/modular processes on your installation costs of products and be the Specialty projects. This is not your materials—ultimately catalyst for their use. Contractors: grandpa’s prefab! With the decreasing the project Many engineering firms Adopt for competitive precision bestowed by BIM budget. today are already using pre- reasons. For some con- and the quality provided Increase construction fabricated /modular ele- struction specialty trades, by modern materials and site safety—resulting ments for the building such as mechanical and manufacturing facilities, in fewer accidents and superstructure, exterior electrical contracting, pre- prefabrication and modular lower insurance costs. walls, roof and floor, and fabrication/modularization construction offer the Eliminate significant they view their use as a way has become an integral part opportunity to obtain amounts of construction to differentiate themselves of their business. With the significant productivity site waste, making the from their competition. inherent efficiencies and gains on your projects. project greener. productivity gains and cur- Owner demand is the Allow the specification General rent projections showing primary driver for architects and installation of Contractors and increased usage on proj- to include prefabrication / better quality and more Construction ects, specialty contractors modular construction into sustainable building Managers: need to acquire experience their project design. materials. Build prefabrication/ with prefabricated/mod- modular efficiencies ular processes in order to Architects: Specify prefabrication into your pre-construc- remain competitive. Understand and educate and modularization in tion planning and bids. clients on the benefits of your design. Once you Prefabrication provides Manufacturers: prefabrication and mod- get the client’s buy-in, predictable results for your Promote the green ben- ularization. As the initial make sure you include schedule and costs. The efits of your products. interface with the client, the prefabrication/modular- research shows that it can Although most architects, architect has the greatest ization into your design. decrease the purchase and engineers and contractors influence during the design The early decision to bring installation costs of mate- do not view prefabricated phase in determining if pre- it into the project allows rials and compress project and modular products as fabrication and modular for greater continuity of schedules. These factors a primary way to achieve construction will be used in design maximizing poten- can ultimately decrease the their green building objec- a project. tial productivity gains. The project budget and allow tives, all professionals Understand the key number one reason engi- GC and CM firms to be agree that these processes benefits that prefabri- neers and contractors give more competitive. reduce waste and the cation/modularization for not using prefabrication Include the green amount of materials used offer, such as improved or modularization is that the factor. It is clear that pre- on projects. Manufacturers project productivity, pro- architect did not include it fabrication and modu- need to raise awareness of ducing more sustainable in the project design. lar construction can help these green benefits. buildings and ultimately reduce waste and result Create BIM objects increasing ROI for the client Engineers: in a greener construction of prefabricated and and other members of the As the professionals site. Given that green has modular products. BIM project team. Architects primarily responsible for become a major factor in use continues to rise, and should educate clients that the structural integrity the construction market- BIM is a driver to increased using prefabrication/modu- and systems efficiency place, the fact that prefabri- use of prefabrication/ larization can measurably: of buildings during their cation/modularization can modularization. ■ SmartMarket Reports McGraw-Hill Construction   6  www.construction.comSMR0411_Recommendations.indd 6 4/29/11 1:34:20 PM
  9. 9. Data:­Section Hed1 Introduction Construction Trends Driving Prefabrication/Modularization P refabrication and modularization are certainly not new to the Prefabrication and Modularization: Increasing Productivity in the Construction Industry  data construction industry. However, current influential construction Note About trends, such as the increasing interest in lean construction, the the Data rising use of BIM technologies and the growing influence of green The data in this report construction have caused many practitioners to reconsider their appeal. In are based on an online fact, the National Research Council’s 2009 report on improving productivity in survey of 809 contrac- the construction industry recommends prefabrication/modularization as an tors, architects and “opportunity for breakthrough achievement.”1 These factors, combined with engineers. The con- tractors comprise 65% recent advances in prefabrication/modularization, make this a critical trend in of the total respon- the construction industry. dents, while architects total 12% and engi- Lean Construction neers 23%. The large The strong increases in productivity offered by using prefabrication and number of respondent modularization fit squarely into the lean building model. The difficult firms in all three player economic conditions in the construction industry have increased the appeal of categories provides a statistically mean- lean methods and practices. For more information on the use of prefabrication ingful sample for the and modularization to achieve a lean approach, see pages 24 and 25. study conclusions. BIM For full methodology, The increasing use of BIM also contributes to the potential for increased use see page 52. of prefabrication and modularization. In a recent study about the use of BIM on green projects, McGraw-Hill Construction (MHC) found that the use of BIM model-driven prefabrication on more than one quarter of their projects is expected to increase from 37% to 73% among practitioners who use BIM for green work. Even those who are currently not using green BIM expect an increase from 22% to 57%.1 BIM helps enable prefabrication of tightly inte- grated MEP systems, allowing designers to maximize space for other uses in high-tech buildings like hospitals. Green Building Green building has grown into a substantial part of the overall construc- tion market. MHC’s Green Outlook 2011 estimates that nonresidential green building will comprise 28%–35% of the total market by the end of 2010. This dramatic increase in market share, from less than 5% in 2005, reflects the fact that green building sustained steady growth throughout the recession, even as the overall construction market shrunk by nearly one-third.2 MHC also predicts that the growth of the market share for green will not abate as the construction industry recovers from the recession. By 2015, MHC projects that 40%–48% of nonresidential construction will be green. As the results of this study demonstrate, this has strong implications for rising interest in prefabrication and modularization, which helps eliminate waste onsite and conserve resources. Bringing the Trends Together 1 National Research Council of the National Academies. Advancing the Competitiveness and Efficiency of the U.S. Construction Industry. What is most striking about prefabrication/modularization is its ability to Washington DC: The National Academies Press, 2009. 2 Green BIM SmartMarket Report: How Building Information Modelling is Contrib- enable all these trends, in addition to being more prominent because of them. uting to Green Design and Construction. McGraw-Hill Construction. July, 2010. 2 Green Outlook: Green Trends Driving Growth, 2011. It brings all of them together to improve productivity in construction. McGraw-Hill Construction, October, 2010. McGraw-Hill Construction   7  www.construction.com SmartMarket ReportsSMR0411_Data_Intro_MarketActivity.indd 7 5/2/11 11:53:49 AM
  10. 10. Data:­Market Activity and Opportunity Sectors with Opportunity for Prefabrication/Modularization Building Sectors Using Currently, prefabrication /modularization is being used on Prefabrication/Modularization Prefabrication and Modularization: Increasing Productivity in the Construction Industry  data many types of building projects demonstrating its appli- Source: McGraw-Hill Construction, 2011 cability across nonresidential construction. Healthcare Facilities The five sectors using prefabrication/modularization in 49% over 40% of projects are: Higher Education (e.g., Dorms, College Buildings) Healthcare (49%) ■■ 42% Higher Education (42%) ■■ Manufacturing Manufacturing (42%) ■■ 42% Low-Rise Office (40%) ■■ Low-Rise Office (1–4 Stories) 40% Public (40%) ■■ Public These sectors also present strong opportunities in the 40% construction market, which bodes well for a vigorous prefabrication/modularization future market. Commercial Warehouse 37% Healthcare K–12 School Healthcare is a sector that is well-suited for prefabrica- 36% tion/modularization techniques. The interior layout of hospital rooms allows for efficient use of modulariza- High-Rise Office (5+ Stories) tion, and it is a sector highly responsive to strategies that 30% shorten schedule—a particular benefit prefabrication Hotel brings to a project (See page 18). 29% According to McGraw-Hill Construction’s economic forecast, the market activity for healthcare construction Retail is expected to increase in 2011 and 2012 to become more 24% than a $28 billion market opportunity in 2012. Multifamily Dormitory and Education Projects 23% Like healthcare buildings, dormitories and school proj- Bank ects have features that are well-suited to prefabrication/ 18% modularization. Dorms and classrooms allow for use of Food Service (e.g., Restaurants, Convenience Stores) modular room design, and these projects also benefit from faster construction schedules. 16% As the largest construction sector by value (over $43 Auto (e.g., Garages) billion in 2011), education presents a significant oppor- 14% tunity for prefabrication/modularization—both currently and in the future (see page 10). Transportation (e.g., Train Stations, Bus Depots) 14% Variation by Player Contractors: Across the board, contractors report ■■ (46%), followed by commercial warehouses (43%). heavier current involvement in prefabrication/ Engagement in the other sectors is 30% or lower. modularization, predominantly in healthcare (61%), ■■Architects: Their heaviest use is in low-rise offices dormitory/education (50%) and public buildings (46%). (43%) and healthcare facilities (36%), with less than a Engineers: Engineers are using prefabrication/modu- ■■ third reporting use in other sectors. larization most often in manufacturing buildings SmartMarket Reports McGraw-Hill Construction   8  www.construction.comSMR0411_Data_Intro_MarketActivity.indd 8 5/2/11 11:54:14 AM

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