Overview of the Characteristics of the Modular Industry and Barriers to its Increased Market Share

Abstract

Modular and offsite construction approaches reduce project duration and cost by synchronizing offsite and onsite work. Project activities are undertaken in a controlled offsite facility to minimize the effects of inclement weather and site disruptions, while meeting safety and quality requirements. To study the characteristics of modular and offsite construction, questionnaires have been conducted during the last decade by many organizations, including the Modular Building Institute (MBI), the Buildoffsite campaigning organization in the United Kingdom, the Canadian Manufactured Housing Institute, the National Institute of Building Sciences, McGraw-Hill Construction, and the Fails Management Institute. This paper introduces comprehensive analysis of the results of a questionnaire survey carried out in collaboration between members of the Department of Building, Civil & Environmental Engineering at Concordia University, the Modular Building Institute, NRB Inc., and the Department of Civil & Environmental Engineering at the University of Alberta. The questionnaire focuses on two issues: (1) the characteristics of the modular and offsite construction industry, and (2) the barriers against increased market share in this industry. For the latter, an effort was made to address a set of five factors identified in a workshop on the topic of challenges and opportunities for modular construction in Canada held in Montréal in 2015 to analyze barriers to growth of modular construction in the Canadian context. Key findings of this survey include requests for use of a separate building code for modular construction design, innovative financing and insurance solutions, standards that consider procurement regulations, and for financial institutions to create lending programs suited for modular construction.