The Modular Construction Paradox: Lessons from the UK and Canada

At the recent Building Transformations conference, a guest speaker from the UK shed light on the stark realities of the modular construction industry, comparing its trajectory in the UK with the situation in Canada. Modular construction has long promised to deliver projects on time, on budget, and with greater sustainability. However, the current landscape tells a different story, particularly in Canada, where many modular manufacturers and constructors are struggling to stay afloat.

Challenges in Modular Construction

The promise of modular construction has been hindered by several factors:

• Skilled Labour: A significant shortage of skilled labour has caused delays, making it challenging to meet tight project deadlines. As a solution, retraining initiatives are being implemented to upskill existing workers, helping to mitigate these delays and improve project timelines.
• Material Costs: Rising material costs have made it difficult for manufacturers to choose sustainable options, leading to budget overruns.
• Financial Struggles: Many modular manufacturers are facing financial difficulties, with some even closing their doors.

A Parallel with the Electric Car Industry

A solution to these challenges can be found by drawing a parallel with the electric car industry. The modular industry, much like the fully electric car market, may have gone too far, too fast. While fully electric vehicles represent the future, the transition has been slow due to infrastructure challenges, a lack of trained workforce, and consumer hesitation. Similarly, modular construction has jumped straight to complex solutions, such as producing entire pods or suites, without a transitional phase that would allow for quality improvements and industry adaptation.

The better approach may be a “hybrid” method—focusing on building kits of parts (e.g., floors and exterior walls) rather than entire modules. This approach could help ease the transition and provide more sustainable and cost-effective solutions.

What Lies Ahead for the Future of Modular Construction?

While modular construction holds promise, the industry must take a step back and reassess its approach. By adopting a hybrid model, similar to the automotive industry’s embrace of hybrid vehicles, the modular construction industry can better navigate its challenges and fulfill its potential.

Sources:

• Canadian Construction Association, Modular Construction Report, 2023
• Maximizing Efficiency in Construction: The Impact of Advanced Technologies on Prefabrication and Modular Construction – Building Transformations Conference Insights, 2024