Analysis of the Growth Dynamics and Structure of the Modular Building Construction Industry

Abstract

The modular construction industry has made significant advances in the last two decades that qualifies it as a more efficient, greener and affordable alternative for delivering building projects. Modular construction depends on moving portion of the project work to off-site manufacturing locations where the building is manufactured in modules, transported to the site, and erected in the designed configuration. Currently, modular construction is a sizable industry that encompasses its own stakeholders, customers, vendors, and supply chains. However, there is no comprehensive understanding of the structure and growth dynamics of this industry that is necessary for predicting its future performance trends. Accordingly, this paper presents a comprehensive description of the modular construction industry structure and a preliminary analysis of previous growth trends and dynamics. Different aspects of the industry are described, in terms of its main stakeholders, supply chain interactions, logistical requirements, and economical attributes of manufactured modular buildings. The industry growth dynamics and trends are analyzed by examining available historical performance data of the modular construction industry that have been collected by the Modular Building Institute since 1994. The findings of this analysis should prove useful in developing future advanced models to help in designing efficient policies and measures to support the growth of the modular building industry.