Sustainable Modular Homes Jamie Britto, Nicole DeJonghe, Max DuBuisson, Kelly Schmandt modular.

Sustainable Modular Homes

Jamie Britto, Nicole DeJonghe, Max DuBuisson, Kelly Schmandt

www.bren.ucsb.edu/~modular

High End, Low Cost

Our Productsustainable – modular – home

High End, Low Cost

Addressing Customer Needs

•Affordable–Continual savings

•“Green”•Rapid construction•Customization•Human Health

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Customization

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Human Health

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Technical Concept

Sustainable

ModularAffordable

Green Piece

s

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Floors and walls built at stations

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Pieces are assembled at

another station

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Wrapped and ready to go!

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Fly-ash Concrete

Solar Panels

Green Screen

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Green Roofing

Passive Sunlighting

Sustainable Wood

Mixed-use development

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How Our Product is Different

Compared to: 

Initial Cost

Build Time Utility Costs

Human Health

Environmental Impact

Regular site-built Lower Faster Lower Better Lower

Sustainable site-built Lower Faster Similar Similar Lower

Regular modular Higher Similar Lower Better Lower

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Regional Market Focus

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Market SegmentationCustomer focus• Families, baby-boomers, LOHAS

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Market Segmentation• Large developers and municipalities• Immediate demand in hurricane-

devastated areas

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Market AnalysisSize/Growth Rate

– Modular housing is the fastest growing segment of housing market(National Modular Housing Council)

– 10% of modular market

1%Green Modular

9%Regular Modular

The Housing Market

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PricingFor 1,500 ft2 single-family home

Costs Revenues

Manufacturing $75,000 $100,000

Transportation $10,000 $10,000

Installation/Finishing $25,000 $37,500

Totals $110,000 $147,500

Price per ft2 $98

(The additional on-site costs of contractors will increase the price for the customer)

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Projections/Milestones

($5)

($4)

($3)

($2)

($1)

$0

$1

$2

0 1 2 3 4 5

Millio

ns

5 Year Cash-Flow Estimate

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Financial AnalysisRevenue Estimates

Revenue    

Sales (40 homes) $5,900,000 100%

COGS ($4,400,000) 75%

Gross Margin $1,500,000 25%

Expenses    

Sales & Marketing ($175,000) 3%

Research & Development ($90,000) 1.5%

General Administration ($40,000) 0.7%

Total ($305,000) 5.2%

Operating Profits $1,195,000 19.8%

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Green Pieces: a partnershipWorkshop/apd• Architectural expertise

Bren School graduate students• Environmental expertise

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Green Pieces

Why is this a good opportunity?– Solves a real problem– Impending building regulations– Demand is growing– Strong team – Solid profitability– Technology exists and is evolving

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Questions?

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Entering the Market

• Target individual customers• Partnering with construction and

manufacturing firms• Initial revenue model based on semi-

customized designs

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Intellectual Property Strategy

• Automatic copyrighting of designs• Contractual agreements

– Establish ownership and liability– Client is only lawful user

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Technical Feasibility

• Established methods of construction• Innovative design and integration• Alternative materials and appliances

already exist

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Prototypes

• One project under construction– GreeN.O.LA in New Orleans

• New prototypes being designed– Single-family home

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GreeN.O.LA• Mixed-use residential community New Orleans’ Ninth Ward

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Single-Family Home

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Our customer is pained

I want to build my own home, but I have to:- rent- live in my parent’s home- have my parent’s buy me a house- move to a less ideal location- choose a less than ideal home

Time consuming to build a home on siteHomes negatively impact the environment &

human health