Rethinking modular construction’s business model

Standardise, standardise, standardise goes the beat of the modular construction drum. Standardisation is so indoctrinated in modular construction’s ethos that it permeates not just into the design and manufacturing but critically to the business model as well. Like a car manufacturer, modular construction’s business is premised on supplying standardised solutions at a high volume to lower costs. However, as many failed modular organisations demonstrate, industrialised construction is not the same as manufacturing.

Construction generally lacks the critical mass required for a volume-operation business model. There is simply too much variation. Every site will likely have a unique aspect, shape, topography and soil conditions. Lots on the same street will likely have different planning controls. Some locations will require seismic and flood mitigation, while others must be designed to withstand hurricanes and tornadoes. And building codes often aren’t even unified at a…

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