FMI Survey Shows Modular as Growth Opportunity for Construction Industry
Charlottesville, VA – FMI Corporation, the largest provider of management consulting, investment banking and research to the engineering and construction industry, reported in its fourth quarter 2010 Nonresidential Construction Index (NRCI) that modular construction is considered a growth opportunity for the industry.
The NRCI report indicates that in light of the long recession, more contractors are thinking lean and looking for ways to build for less. FMI asked about one trend that could help make the construction business leaner and more efficient, the growth of prefabrication and modular construction. Although the trend for greater use of off-site construction has been growing slowly for years, the recession and new technologies are set to increase the use of manufacturing processes and environments for construction.
Only 11% of the panelists surveyed expected growth for the next three years to be less than 1%, or less than expected GDP growth. Thirty-seven percent expect growth to be between 1% and 5%, but 49% expect growth to exceed 5%. Panelists expect this area to grow faster than the market in general due the growing use of BIM, owners wanting projects faster and for lower cost, safety, quality and the shortage of skilled labor once markets return to more normal growth.
“This report confirms what we’ve believed for a long time, that modular construction is poised for take-off,” said Tom Hardiman, Executive Director of the Modular Building Institute. “Over the past five years there has been a growing interest in the commercial modular construction market from building owners and investors alike. We expect to see continued growth for our commercial building providers as the modular construction industry continues to adopt innovative and efficient construction techniques.”
The NRCI is a quarterly report by FMI which is a sampling of construction industry executives voluntarily serving as panelists for surveys about industry trends. The responses are based on their experience and opinions, and the analysis is based on FMI’s interpretation of the aggregate results.
For more information on the fourth quarter 2010 NRCI, visit www.fminet.com.
FMI is the largest provider of management consulting, investment banking and research to the engineering and construction industry. FMI works in all segments of the industry providing clients with value-added business solutions.
Founded by Dr. Emol A. Fails in 1953, FMI has professionals in offices across the U.S. FMI delivers innovative, customized solutions to contractors; construction materials producers; manufacturers and suppliers of building materials and equipment; owners and developers; engineers and architects; utilities; and construction industry trade associations. FMI is an advisor you can count on to build and maintain a successful business, from your leadership to your site managers. More information on FMI.
The Modular Building Institute (MBI) is the international non-profit trade association serving non-residential modular construction. Members include providers of relocatable buildings as well as permanent modular construction contractors and suppliers. It is MBI’s mission to expand the use of offsite construction through innovative construction practices, outreach and education to the construction community and customers, and recognition of high quality modular designs and facilities.
MBI also administers an educational foundation established specifically to facilitate and deliver research and educational opportunities in the form of design competitions, scholarships and partnerships with leading research entities with an interest in advancing commercial modular construction.
More information about MBI.