Monday, August 19, 2019

Innovators Flocking to Modular Construction

Lots of ‘new to modular’ entrepreneurs are seeing huge opportunities in jumping into the commercial modular arena and the venture money is beginning to flow like water from an open faucet.

I’m not talking about single family modular companies, rather the ones that are producing a cookie cutter type of affordable modules that can be stacked many stories high and as wide as the project’s land footprint allows.

Blokable’s opening statement on their website sums up what is beginning to happen all over the US:

"We don’t sell boxes, we develop real estate. Blokable’s unique process and product significantly reduce the cost and time required to create and operate new multi-family housing. We partner with market rate and not for profit land developers and service providers to make housing happen. Building at lower cost, higher quality, and in less time, we create real estate equity."

When we read and hear about modular construction making huge inroads into housing they are not talking about single family homes as that market for the most part is mostly stagnant across the country.

Affordable is the new buzzword and what better to build those units than to go modular. With no shortage of cities looking for solutions to their affordability problems not only is private equity looking for modular companies that show promise but city government’s are waving all sorts of incentives to attract more affordable housing and of course they are seeing modular as the best answer.

And let’s not forget those big non-profits that are turning to modular companies to not only manufacture affordable modules. They also want to partner with those factories to do as much of the delivery, set and finish as the factory can do.

And finally there is another huge market for modular construction when cities and non-profits actually begin getting serious about providing living units for the homeless. Right now there are a couple of modular factories trying to fill that need but as soon as investors and developers see it as a profitable investment the roof will blow off modular construction.

So many things are happening in the modular construction industry and if your company isn’t taking advantage of all the modular association annual meetings happening over the next several months you just find yourself watching the modular construction train passing your station without stopping.

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