How Modular Solutions Can Help Address High Construction Costs
Date Posted: February 23, 2023
Posted In: Discussion, News,
From Building Design+Constrcution: Since the onset of the Covid-19 pandemic, we have seen record-high construction costs and delays that have affected almost every industry across the country. And, with the most recent report from CBRE, it’s clear construction costs will continue to rise.
The global real estate services firm has predicted a staggering 14.1% annual increase in U.S. construction costs by the end of 2022—up from an 11.5% escalation in 2021, and far outpacing the historical average increase of two to four percent each year.
Although there might be some relief coming in the short term, there is no question the industry must adapt to a changing landscape. To combat these ever-rising costs due to supply chain disruptions, skilled labor shortages and inflation, there will be a fundamental shift in how projects are assembled and delivered.
THE FUTURE IS MODULAR
Modular building solutions are not new concepts by any means. They can be traced back all the way to antiquity when ancient Romans used a prefabricated system of assembling massive sections of roads that stretched hundreds of thousands of miles and can still be seen to this day. Debates about modular construction over on-site traditional construction have been ongoing for centuries, but modular performance has evolved—with better technology, more efficient processes and faster implementation—and is more credible now than it ever was.
Change can be difficult. However, when done right, modular design and construction can address some of the key challenges the industry is facing today.