Monday, August 24, 2015

NAHB Completely Disregards Modular Housing

Before you tell me that the NAHB is a great organization and I shouldn't say anything bad about them, take a few minutes and read the following report they recently sent out. If you are a "regular" site builder, these facts are probably very accurate but if you build with that "also ran" modular construction, then this chart is full of holes.

Also, the chart shows "built to rent." Is there a chart for "Owner Land - Built by Contractor?"

One of the comments asked about time from application to permit and that is the great equalizer. But once that permit is in hand, the NAHB timeline loses all meaning to a modular home builder.

Viva Modular Homes!

CLICK HERE to read the entire article from the NAHB.


Anonymous said...

One day people in the Modular industry are going to wake up and stop saying it is the consumer who does not understand the product. it is the building industry itself that is against off-site construction. Architects don't want to see it because they lose scope, subs don't for obvious reasons, GCs don't because they can't justify the same % margin and general conditions with Modular product.
marketing needs to shift to the construction industry itself and stop being so PC about this. What slows the growth of Modular is from within.

Anonymous said...

Except for the Nationals, who are more land developers than builders, most Builders don't build in the traditional sense but today manage a work flow and material supply chain. Once they understand that building modular reduces their onsite risks from OSHA, workmen's comp, weather, and theft with an easier work flow management system then they can understand how technology has made modular or prefab even more efficient from a production standpoint. Although the lead up and prebuild process requires more detailed coordination the on site process has a proven track record of delivering occupancy in a shorter time frame from foundation set to completion. Building for rent with modular means a potential increase in ROI as equity build and monthly cash flow begins sooner.

Anonymous said...

All that was said just above is true. Finding a builder who understands and will monetize those items you list is very rare and difficult to find. All our company hears day in and day out is "how much" per foot. The customer considers all those extra items you list as the reward for taking a risk.
The article subject line was about the NAHB. They are not going to support Modular because their membership considers it a threat. If they were to support Mods you would see traditional builders bail out of this organization and go start another.
Again, our problem is not with the end is with the construction industry.

Anonymous said...

The major home building companies don't see it as a threat. They see constraints in the capability of the existing factories to meet the market needs for units produced. The local residential contractor who sells less than 10 homes a year gets frustrated at delivery schedules of 10-15 weeks from plants. These are weeks that they feel they need to show progress in the field to the client.

Yes we need to better educate the small or niche residential contractor and offer sales training to minimize their and the clients perception that these are empty non-productive weeks.

Unfortunately, many of these smaller contractors are working in the business and not on their business using these weeks to sell more homes for more clients.