Modular Construction Study by McKinsey & Company

Modular construction study: Modular could scale to an industry that represents more than $100 billion in US and European real estate, delivering $20 billion in annual savings

modular construction

McKinsey & Company has recently published a 34 page modular construction study, Capital Projects and Infrastructure Modular construction: From projects to products. By Nick Bertram, Steffen Fuchs, Jan Mischke, Robert Palter, Gernot Strube, and Jonathan Woetzel.

For decades, construction has lagged behind other sectors in productivity performance. Now there is an opportunity for change: shifting aspects of building away from traditional onsite projects to offsite factory production. Even though modular construction is not new, it attracts a fresh wave of interest and investment. Due to labor shortages in developed countries and rapid automation in the workplace, modular keeps growing. Additionally, the world population continues to grow at a steady rate, increasing demand for housing. Altogether, many demographic trends converge to give modular methods an advantageous position in the economy. This modular construction study quantifies the potential benefits, challenges, and looks at whether modular will have a sustainable impact.  To learn more about their findings, you can download this timely publication now.

In addition to many others, here are some topics covered in this publication:

    • Modular encompasses a variety of methods.
    • Modular methods can cut schedules by 20–50 percent
      and costs by 20 percent.
    • Labor dynamics and demand are at the top of the list of
      factors driving adoption of modular.
    • Many markets worldwide have the conditions in place for modular to take root.
    • Modularization can disrupt the construction and real-estate ecosystem