MkLotus House by Michelle Kaufman Designs, 2007 INDUSTRY ANALYSIS: PREFABRICATED MODULAR HOUSING Steve Puma, Final Project, SUS6200 Macroeconomics and Ecological Economics, Fall, 2007 November 14, 2007
MkLotusHousebyMichelleKaufmanDesigns,2007
INDUSTRYANALYSIS:PREFABRICATEDMODULARHOUSING
StevePuma,FinalProject,SUS6200
MacroeconomicsandEcologicalEconomics,Fall,2007
November14,2007
TABLEOFCONTENTS
Overview .........................................................................................................................................................3
Background .................................................................................................................................................3
IndustryAnalysis .............................................................................................................................................4
MarketTrends ............................................................................................................................................5
OpportunitiesandThreats .........................................................................................................................6
Products ......................................................................................................................................................8
IndustryConcentrationandAnalysis .......................................................................................................10
PricingandCompetition ...........................................................................................................................10
BarrierstoEntry .......................................................................................................................................12
CostofProduction ....................................................................................................................................13
MarketAnalysis.............................................................................................................................................14
MarketSize ...............................................................................................................................................14
MarketDemand .......................................................................................................................................15
Sustainabilityissues ......................................................................................................................................16
Conclusion:IndustryOutlook........................................................................................................................18
WorksCited...................................................................................................................................................19
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OVERVIEW
BACKGROUND
MostAmericansdreamofowningtheirownhome.However,thecostofbuying
ahomehasincreasedsignificantlydimmingthehopeforsomepeople.More
importantly,thecostofbuildinganewhomehasbecometrulyadreamformost
people.Intheearly1990’s,tocombattherisingcostofowningahome,pre‐fabricated
homesincreasedinpopularity.Apre‐fabricatedhome,ormostcommonlyknownasa
‘modular’home,isbuiltinafactoryandshippedinpiecestotheowner’shomesite.
Thetimeandcostinvolvedinbuildinganderectingamodularhomeisconsiderablyless
thanconventionalconstruction.Thispaperwilllookatwhytherehasbeensuchan
increaseinpopularityofthemodularhome,andwhatthefutureentailsforthis
business.
Intheearly1900s,Sears,Roebuck&Co.beganmarketingmodularhomes
entitled‘HousebyMail’.Thesehomeswereprefabricateddwellingsthatgavehopeto
Americanswhodreamedofowningtheirownhome.Currently,thereareapproximately
120manufacturersintheUnitedStates.Someofthesecompaniesarefullyintegrated,
meaning,theyhavetheirownsales/marketingstaff,woodlots,sawmills,plywood,and
constructionplants.Withtheimprovementsinconstructiontechnology,today’s
modularhomesaresignificantlydifferentthantheSearsmodularhomes.The
differenceisduetotoday’ssophisticatedengineeringtoolsandmachineryusedtobuild
thehomes.
ThemodularhomeindustryisheavilyconcentratedintheEastCoastofNorth
America,wheretheabilitytoconstructhomesindoors,whereworkersandmaterials
arenotaffectedbysevereweather.Thishastheadvantagesofcostsavingsand
extendingthemanufacturingwindowtotheentireyear(inadditiontothesustainability
advantageofbetterworkingconditions).Thereisamajoropportunityforgrowthinthe
Westernregion,sinceonly8ofthemajormanufacturersarecurrentlylocatedWestof
theMississippi.
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ThePrefabricatedModularHomeindustryiscurrentlyexperiencingalarge
amountofgrowthduetocostfactorsandrenewedinterestintheenvironmentand
globalclimatechange.This“environmentalfactor”ispoisedtobecomethenew
industrystandard,asmanyfacetsofmodularbuildinglendthemselveseasilytoefficient
buildingpracticesandgreentechnologies.
INDUSTRYANALYSIS
Prefabricatedormodularhomesareconstructedusingthree‐dimensionalboxes
or"modules"thatare90percentto95percentcompletewhentheycomeoffthe
assemblyline.Thisincludesinteriorwallsandfinishwork,andexteriorsiding.Also
utilityworkandconduitlinesaswellasandinteriorwallsandstairsarecomplete.Apre
fabricatedormodularhomeisusuallyshippedintwoorthreesections.Itarrivesona
buildingsitejustneedingtobesetandattachedtothefoundation.Severalmodulescan
beconnectedside‐by‐sideorstackedtocreateafinishedhome.Whencompleted,most
modularhomesarecomposedofgroupsoftwo,three,orfourmodules(boxes)
fastenedtogether.Mostmodularmanufacturersdesigntheirhomeswithintegralroofs
thatarehingedsotheywilllieflatduringshipment.Forsteeplypitchedroofs,anextra
roofunitissometimesrequired.Forroofswithmultipleconfigurations,some
manufacturersprovideindividualrooftrussesthatmustbeinstalledandsheathedat
thesitetofinishthestructure.Thisincreaseserectiontimeandprojectcostbut
providesincreaseddesignflexibility.Modularhomesareconstructedtominimizethe
crackingofgypsumboardsheathingduringshipment.Mostmodularmanufacturers
constructeachboxwithfloorandceilingjoists,evenwhenboxeswillbestacked
vertically.(MSUP1875factorybuilthousing,2007)
Thereareapproximately120differentmodularhomemanufacturersacross
NorthAmerica,withalargerconcentrationofthemlocatedalongtheeastcoast.With
therisingcostsofbuildingstick‐builthomes,themomentumforprefabricatedhomesis
gaining.However,withtherisingcostsofmaterialsandneedforeducationonthepart
ofthefinancialindustryandthepublic,theindustrymaynotbeasgoodadealfor
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peopledreamingofowningahome.Regardless,themodularhomeindustryisgrowing
largerandmeetstheneedsofdifferentpopulations,fromfirsthomestovacation
homes.
MARKETTRENDS
Rangingfromapproximately$100‐$300asquarefoot,modularhomesare
becomingincreasinglypopular.Additionally,thetrendismovingtowards‘greenbuilt’
homes.Greenbuilthomesarehomesbuiltwithenvironmentallyfriendlymaterials.
David,Newey,directorofclientservicesforSoutheastregionofEmpyreanstates:“As
housingcostsriseandaspeoplebecomemuchmorefocusedonmaterialsandqualityof
constructionandqualityofperformanceofthehouse...themarketwilldemandthis
typeofconstructionanddemandthathousesperformbetter”(TriangleBusiness
Journal,2007).Inorderforthemodularhomeindustrytotruly‘takeoff’,educationof
howthehomesaremanufacturedisnecessarytoensurethatthepublicdoesnot
confusemodularhomeswithmobilehomes.ThereisacertainstigmaintheUnited
Statesregarding“mobilehomes”or“pre‐manufactured”homes.Thestigmakeeps
peoplefromotherwiseconsideringthisveryaffordableandefficientwaytogetahome
built.
Anotherimportantfactoraffectingthemodularhomemarketisthelaborforce
intheUnitedStatesandCanada.Inmanyareas,theskilledlaborforcenecessaryto
buildcustom“stickbuilt”homesisn’tavailableduetoaverytightlabormarketso
homebuilderschargeapremiumandestablishwaitinglistsforclientswhowouldlikea
homebuilt.Prebuiltmodularhomesrequirelittleskilledlaborandcomeneedingvery
littledonetobeafullyfunctioningdomicile.Withanordertomoveindateof8weeks
modularhomesarequickertomoveintomostcasesthanconventionalhome.With
modularhomescostinglessthantheirstickbuiltcounterparts,theyofferavery
attractiveoptionforallhomebuyers,notjustthefirsttimebuyer.
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Ifthemodularhomeindustryisabletogainmomentuminthegreaterhousing
marketwiththeadvantagestheypossess,thereisconsiderableroomforthemto
increasetheirmarketshare.AccordingtoWIREDMagazinein2007,“AVIFRIEDMAN,
ANARCHITECTUREPROFESSORATMCGILLUNIVERSITY,ESTIMATESTHAT5TO10
PERCENTOFALLNEWHOMESINNORTHAMERICAAREPREFAB(ANDABOUT10
PERCENTOFTHATMARKETISUPSCALE).HEPREDICTSTHEPREFABFIGUREWILLJUMP
TOMORETHAN35PERCENTINTHENEXT10YEARS.“
OPPORTUNITIESANDTHREATS
Thereareseveralopportunitieswithprefabricatedhomes.First,theproduction
costsareconsiderablylower.Notonlydocompaniesmanufacturingprefabricated
homesgaineconomiesofscaleintheproductioncosts,otheroverheadcostsarealso
sharedallowingthepricepersquarefoottostaydown.Additionally,piecesofthe
homeareproducedinanenvironmentwheretheclimate‐controlensurestheworkforce
isabletocompletetheworkwiththehighestquality,unlikeatraditionalbuilderwhere
thematerialssitintheelementsoftheweatheratthebuildingsite.Engineering
tolerancesforproductsarefiner,andtheconstructionqualitybetter,duetomachinery
withinthemanufacturingenvironmentusingastablewell‐trainedworkforceversusa
differentsubcontractoroneachjob.Thereisalsolesswasteofmaterialsduring
production,asthereistimeanddataforqualityimprovementefforts,suchasasix
sigmainitiative,whichaidsinloweringthecostofproduction.
Second,prefabricatedhomesareeligiblefortraditionalmortgagefinancing.20
yearsagoandevenasrecentasjust10yearsago,amobilehometraileror
manufacturedhomehadalowermortgagetermandclassifieddifferentlythana
traditionalhome.Today,prefabricatedhomesarebuiltonfoundationsandareofa
leastthesamequalityofconstructionassite‐builthomesareandthereforequalifyfor
30‐yearmortgageloansmakingthemextremelyaffordable.
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Third,materialsusedareusuallyhigher‐gradematerials,focusingongreenbuilt
technologies.Withtheabilitytomachinebuildingmaterialsinmanufacturingfacilities,
companiesareabletobuildhomesofbetterqualitythancanbebuilton‐site.
Additionally,workersarenotexposedtotheelements,areaffordedgoodbenefitsand
workingconditions,andgiventrainingandaccesstothelatesttechnological
constructiontechniquesandtools.
Fourth,modularhomeconstructionundergoessimilarpermitandbuildingcode
inspections,asdoesitstraditionalstick‐builtcounterpart.Withthequalityimproved
andthemajorityofthehomeprebuilt,theonsiteinspectionrequiredisminimal.
Modularhomesmustconformtothesamestateandlocalbuildingcodesasdoother
residences.TheBuildingOfficialsandCodeAdministratorsNationalBuildingCodeisthe
mostcommonlyenforcedofthenationalcodes.Inmostcases,amulti‐stepprocess
happensforeachhousebeingmanufactured.Plansaresubmittedtolocalauthorities
forbuilding‐codeapproval.Thenbuildinginspectorsmustapprovethemanufacturing
processandtheconstructionoftheactualunitsbeforecertificationisgranted.Thisis
sometimesknownasa“third‐partyplancheck”(Cornelius,PumaandSowers,2007).
Uponthegrantingofcertificationforamodelofahome,astate‐approvedlabelis
affixedtoeachunit.
Athreatthatexists,istheconfusionthattheseareexpensive“mobilehomes”.
Educationtothepublicaboutwhatmodularhomesare,andthedifferencesin
construction,mustoccur.Anotherthreatisthatthefinancialindustrymaynothave
experienceindrawinguploansforprefabricatedhomes,thusmakingobtaining
financingharderforindividuals.StuartTyrie,avicepresidentofWellsFargoHome
Mortgage,recommends“anyonethinkingofbuyinganontraditionalhouseshould
spendtimespeakingwithprospectivelenderstomakesuretheyhaveexperience
makingloansonthistypeofhome.”(NewYorkTimes,2006).Anotherthreatisthere
maynotbeacostsavingsasinitiallythought.Forinstance,notonlydoesthebuyer
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havetoobtainfinancingforthemodularhome,butthebuyerwillalsohavetopayfor
theland,taxesandpermitsrequired.
PRODUCTS
Modularhomesmustbebuiltstrongenoughtowithstandthetransportationto
theconstructionsite.Subsequently,thereisafloorandceilingbuiltevenifitisatwo‐
storyhome,alongwiththickerwallsthanastandardsupportingwall.StalwartBuilt
Homes,locatedinFlorida,buildLEED‐certifiedhomesthatwithstand200‐mileanhour
windsgeneratedfromhurricanes.1
ConnorBuildingCompany,locatedinVermont,builds“panelized”homes,similar
tomodularbutrequiringmoreassemblyatthehomesite.Forinstance,portionsofthe
panelizedhomearebuiltatthefactory,thestructuralandpartitionwalls,asarethe
rafters,yet,unlikemodular,areassembledatthehomesite.(Cornelius,Pumaand
Sowers)
Oneofthebenefitsofamodularorprefabricatedhomeisthatthereisless
wasteofmaterials.“RebeccaWoelke,directorofmediarelationsforMichelle
KaufmannDesigns(MKD)inOakland,California,toldEBNthecompany’smodular
homesyieldupto70%lesswastethantypicalsite‐builthomes.”(ENN,2007)Also
noteworthyisthefactthattheprefabricatedhousingindustryhasadoptedlean
manufacturingprinciplesintheirproduction,whichisdesignedtoeliminatewasteor
overstockingofmaterials,whichcostsmoneytositinstorage.
1LEEDcertificationactuallyisdependentonthebuildingsiteitself,aswellastheorientationofthehouseonthatsite,sothiscompanymaybemisrepresentingthefactssomewhat.
8
Takenfromthe2002USCensusBureauforPrefabricatedWoodBuildingManufacturing,belowisatablethatoutlinestheindustrystatisticsbyprimaryproductclass.
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INDUSTRYCONCENTRATIONANDANALYSIS
Thetablebelowistakenfromthe2002EconomicCensusforPrefabricated
WoodBuildingManufacturingbytheUSCensusBureau.Theinformationprovided
describestheemployees,costofmaterialsandvalueofshipments.
Prefabricationhomesaregenerallyoperatedregionallybasedontransportation
costs.
PRICINGANDCOMPETITION
Buyingorbuildingamodernhomeisexpensive.Amodularhomeisawell‐
designedhome,butthecostscanstillbesubstantial.Whilemodularhomesare
generallylessexpensiveasthanotheralternatives,therearecompanieswhospecialize
inhighquality,highcostprebuilthomes.Mosttimestheprefabricatedhomecanbe
classifiedasnewconstruction,whichbuyersmayfindfinancingdifficulttoobtain.
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Generallyinanewconstructionloantheinterestishigheruntilthehomeiscompleted
atwhichtimetheloanconvertstoconventionalhomefinancing.Giventheexpanseof
modularmanufacturerswithaclearlydefinedmarketmanyviewthisasaperfect
competition.Themanufacturersdonotcontrolthecostsforeveryone.Rather,the
fluctuationofcostsofmaterialswouldeventuallydictatethepricestructuresforthe
modularhomesbutmanufacturingtechniqueandeconomiesofscalecouldstillhelpto
keepcostsunderthoseofconventionalstickbuilthomes.
Belowisanexampleofestimatedcostsforaprefabricatedhome/buildingsite.
Thesecostsvarydependingontheareawherethefinalproductwillbeerected.
“Costs‐ABasicBudgetOutline Costs‐Example1500sqfthome
1.Home/Structure 1. $227,000
i.designfees i.$4,000
ii.materials/structure ii.$210,000($140sqftx1500)
iii.upgrades/finishes iii.$10,000
iv.transportation iv.$3,000
2.Land/Site 2.$148,000
i.lot i.$120,000
ii.sitework/foundation/hookup ii.$18,000
iii.landscaping iii.$10,000
3.Financing/Taxes/Permits 3.$19,000
i.loancosts/closingcosts i.$4,000
ii.salestax/buildingpermits/fees ii.$15,000
Total=$394,000(exampleonly‐costvary)”
(Prefabs.com,2006)
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InCanada,EmpireModularHomesisAlberta’sleadingmanufacturerformodular
homes.“EmpireModularHomesisproudtoprovidemodern,attractive,andhigh
qualitymanufacturedhomes.Ourmodularhomesdisplayexcellentcraftsmanshipand
featurethelatestinnovationsinmanufacturedhomedesignandconstruction.”
(NetventionCompanyProfiles,2007).
Bensonwood,anothermanufacturer,providesgreenbuilthomes,whichoffer
environmentalbenefits,suchas“better‐insulatedstructures;lesswastefrom
construction;reducedtransportationimpacts;and,insomecases,easierdisassembly
forreuse.Prefabricatedconstructionalsohasthepotential,giventheefficiencyof
factoryproduction,todeliverthesebenefitsatalowercostthansite‐builthousing.”
(ENN,2007)
Ahigher‐endbuilderofmodularhomes,locatedinStamford,Connecticut,builds
homeof5,000squarefeetandlarger,cateringtocustomerswhodesirecustomized
details.DarrellHoss,thebuilder,chosetobuildmodularhomesversusstick‐built
homesbecausethebuildingmaterialsarekeptinaclimatecontrolledareaandthe
overallqualityofconstructionismoredurablethanstick‐builthomes.Additionally,the
employeesarelong‐termemployeesversushiredlaborersforstick‐builthomes.
BARRIERSTOENTRY
Themodularorprefabricatedhomebuildingindustryhasseveralbarriersthat
makeentryintothehousingmarketdifficult.Publicopinionisthenumberoneissue
thatthattheindustryfaces.Peoplecontinuetoviewhomesthatarepre‐builtasbeing
madeoflesserqualitycomponentsandbylessskilledlabor.Overcomingthischallenge
willrequiretheindustrytoworktogetherasawholewithacomprehensivemarketing
andpublicrelationscampaigntochangethepublic’sopinion.
Competitionremainshighwithhighlycompetitivelarge‐scaleon‐sitehome
builderswhouseeconomiesofscaletoreducethecostsofland,materials,andlabor.
SomeofthesemegabuildersareevenNewYorkStockExchangetradedfirmsthatcan
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investintheinfrastructuretomeetbuyerneeds.However,onapositivenote,public
opinionshowstherearehundredsofthousandsofpeoplewhodonotwanttoliveina
PlannedCommunityandarelookingtobuildonrawland.
XtremeHomes,whichisa2‐year‐oldcompanylocatedinOroville,California,has
beenabletolessenitsbarrierstoentrybychoosingitslocationwisely.XtremeHomes
intendstotakeadvantageofthepreviously‐mentionedlargemarketopportunitythat
existsontheWestcoast,aswellastheincreasinginterestinenvironmentally‐friendly
technologies.XtremeHomes’CEO,TimSchmidt,hadpreviouslybeenworkinginFlorida,
andsawamarketnichehecouldtakeadvantageof.(Schmidt)
Stateandfederalregulationsalsohavetobefollowedcarefullyandmanystates
haveextremelystringentbuildingstandards.Ifareasbecometoobuiltup,the
regulatingmunicipalitywillbegintotightentheamountofpermitsissued,andtherewill
beintensecompetitionforthelimitedamountofpermitsthatareissued.
Timetomarketisanotherareathatcanbedifficultfortheprefabricatedor
modularhomeissuetohandle.Althoughitispossibleformanyofthecompaniesto
deliverahomereadytomoveintowithineightweeksthistightturnaroundtimeisnot
alwayspossible.Ifbuyerswantcustomfeaturesoradaptations,themanufacturing
processisslowed.Permittingmustberedoneoramended,andthewholeprocessis
sloweddown.Additionally,whendemandishigh,thehomessimplycannotbebuiltfast
enough.Ifthedemandbecomessohighthatfactoriesconsiderexpansion,themajority
ofcompanieswouldtakemorethantwoyearsandmillionsofdollarstobuildaplant
largeenoughrequiredtoproducemodularhomes.
COSTOFPRODUCTION
Themodularmanufacturershavegeneralspecificationsthathavecosts
associatedwiththem.Ifahomebuyerwantstoupgradeorvaryinanyway,thecost
rises.Thisismuchthesameasaregularstick‐builthome.“Ifyou’retryingtodo
sustainability,”Qualesaidofaffordablehousing,“you’regoingtobeusingmaterialsthat
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arethesameas,ifnotbetterthan,thoseusedinamarket‐ratehome,soyouneed
otherstrategies.”(ENN,2007)Thecostcomparisonofastick‐builthomeversusa
modularisthefactthatwithamodularhome,everythingisbuilton‐siteandthen
shippedtothehomesite.Withstick‐builthomes,contractorsandlaborershaveto
traveltothesiteandmaterialsaredeliveredinseveralsmallbatches.Withamodular,
theshipmentmaytakeacoupleoftrucksandacranewithafewlaborerstoputthe
piecestogether,reducingcosts.”Itremainsvital,however,thatthegeneralcontractor
performingtheonsiteworkbefamiliarwithmodularconstructionandtheprocedurefor
ensuringagoodsealbetweenmodules.”(ENN,2007)
MARKETANALYSIS
Themodularhomemanufacturermarketislocatedacrossthecountry,with
mostoftheconcentrationofmanufacturersontheeastcoast.Thedemandforhigher‐
quality,lower‐costhomesisincreasing.Boththechangingattitudesandevolvingnature
ofhomebuildersandhomebuyerswillhaveamajorimpactontheindustry’sprospects.
MARKETSIZE
Thetop10manufacturershaveeachbuiltaminimumof500homesin2006and
haveacombinedrevenueof4billiondollarswiththetopcompanyapproaching5,000
homesbuiltandshippedinoneyear.Thetop10Company’sresultsinhomesshipped
andgrossrevenuefor2006arelistedbelow.
2006GrossRevenue
“Company 2006HomesShipped (inmillions)
1. ChampionEnterprises 4,653 $1,365
2. CMHManufacturing 3,166 $1,328
3. PalmHarborHomes 1,614 $711
4. MuncyHomes 1,346 $85
5. ExcelHomes 1,200 $111
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6. Ritz‐CraftCorporation 849 $91
7. ProfessionalBuildingSystems 781 $58
8. RoyalConcreteConcepts 600 $68
9. LibertyHomes 552 $97
10. PleasantStreetHomes 526 $57”
(Top31Modular/Whole‐HousePanelBuilders,2006)
Asthemarketcontinuestogrow,whichclearlytheabove‐citedcompaniesare
provingtobetrue,newhomescanbewithinreachofalmosteveryoneinAmerica
allowingthemtheopportunitytoaffordtheAmericandream.
MARKETDEMAND
Modularhomeshaveincreasedinpopularity,particularlyinthenortheast.
Martha’sVineyardisagoodexampleofhowthemarketisincreasing.''Atleasta
quarterofallthenewhousesontheVineyardinthelastyeararemodular,nodoubt,"
saidTisburybuildinginspectorKennethBarwick.''Andthattrendwilllikelygohigheras
timegoeson."(BostonGlobe,2006)
Currentlythetrendofallnewhomesbuiltisapproximately2percentofthe
marketbeingmodularhomes.AccordingtoFredHallahan,principalofHallahan
Associates,whichisafirmthatcompilesindustrystatisticsintheBaltimorearea,
believesthatthetrendwillincreasetoseventoeightpercentbytheendofthedecade.
Belowisagraphshowingtheincreaseinmodularproductionfrom1995‐2005:
15
TheriseinmodularbuilthomesinMartha’sVineyard,knownforsprawling
estates,is“simplearithmetic:thefewertimeslocaltradesmenbangahammer,themorebucksthe
homeownersaves.Charter'srule‐of‐thumbcostforabudget‐consciousmodularhomeofexcellent
qualityis$115persquarefoot,whichgetsthebuyeraplaceinmove‐incondition.Acustomhome,
meanwhile,startsataround$200persquarefootforthemostentry‐levelhomeontheVineyard.”
(BostonGlobe,2006)
SUSTAINABILITYISSUES
Aspreviouslymentioned,theprefabricatedmodularhomebuildingindustryisaperfectmatchforsustainabilityissues.Therearemanypossibleadvantagessuchasthefollowing:
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• Efficientuseofrawmaterials:smallpiecesofwoodandothermaterialscanbeusewherepossible,unlikethetypicalbuildingindustrypracticeofdiscardingthem.
• Abilitytostandardizecomponentsmeanshigherquality,moreefficiency
• Thepossibilityexistsforco‐locationwithothersustainablebusinesses,suchaspowerco‐generationandrecyclingfacilities.
• Betterworkingconditionsforconstructionemployees:
o Stableyear‐roundemploymentmeansmorework
o Longeremploymentmeansbettertrainedworkers,whichleadestohigherquality.
o Betterbenefits
o Workersdonothavetobeadverselyaffectedbyweatherconditions.
• Housescanbeconstructedwithenvironmentally‐friendlytechnologies,suchas:
o “SIPS”panels,whicharesolidwallpanels,constructedbysandwiching2piecesofplywoodaroundaninsulatedcore,andareveryenergyefficient.
o Greenroofs
o Energy‐starcertifiedappliances
o Specially‐designedpassiveheatingandcoolingsystems
o Betterqualitymeansbettersealsbetweenpanelsandsections.
Giventhepreviouslymentionedgrowth,theabilitytotakeadvantageofthesegreentechnologiesmeansthatprefabricatedmodularhousingcanhaveahugeimpactontheenvironmentandclimatechangeissues,sincestructuresaccountforalargepercentageofenergyusageandgreenhousegasemissions.
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CONCLUSION:INDUSTRYOUTLOOK
Althoughprefabricatedhomeconstructionhasmadegreatstridesinthehome
manufacturingmarket,particularlyindesign,constructionandenergyefficiency,there
isstillalotofroomforgrowth,especiallyontheWestCoastoftheUnitesStates.Even
thoughsomeofthemanufacturersarebuildingagreenproduct,itisnotsomethingthat
allthemanufacturershaveyetmastered.Specifically,whenitisnecessarytochange
thespecsofahome,suchastoaddextrainsulationtomakeitmoreenvironmentally
friendly,theremaybemoreexpensiveinthelongrun.Thismaypossiblybemitigatedby
takingadvantageofeconomiesofscale,astheautoandotherlargeindustrieshave
done.Theremayalsobesitelimitationsorareaswhicharenotfamiliarwiththebuilding
process.Inessence,theprefabricatedmodularhomebuildingindustryisnotyetthe
standardwaytobuildhomes,especiallygreenhomes,buttheindustryiscurrently
positionedsothatitwillnotbelongbeforebothofthesethingsaretheindustry
standard.(McGraw‐HillConstruction)
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