Before the 2008 housing crash, most residential modular home factories did very little commercial work. Content to selling homes to hungry new home buyers, factories did not have to look to Commercial building to keep the production lines full.
After 2008 many factories were faced with cutting back production, closing their doors or trying something new. The new thing was commercial modular. A lot of factories found that the margins in commercial were a lot slimmer than residential but the idea of putting 100, 200 or more similar floors to the production line had great appeal.
Commercial developers preyed on those slim margins and the need or modular factories to keep the doors open and quickly signed orders that many factory owners later regretted. That is until now.
One important thing that came out of that post housing recession and slim profit margins in commercial modular was a quick education by both the developer and the factory about how to work together. Profits started to rise to normal levels and the developers found that modular was really a great way to save time and money and at the same time getting a good quality structure that was both green and energy efficient. Win-Win.
Modular has become so accepted that Google is even planning to build their new Silicon Valley Campus using modified modules.
It only makes sense that permanent modular construction would be a top consideration for commercial and retail developers which are dependent on producing a constant stream of revenue.
Modular building construction methods can accelerate time to occupancy up to 50% sooner than conventional construction.
Architects, developers and engineers report time savings of 4 weeks or more and budgets are decreased by an average of 6% as well as a 5% decrease in on-site waste.
A successful business is always moving, growing, and changing rapidly.
Modular commercial and retail buildings are a smart solution to our industry's changing business needs. Commercial modular construction offers a solutions to expand business quickly, and keep everything operating with minimal disruptions and profits flowing.
There are a couple downsides to residential modular factories moving into the commercial modular business:
- Making sure their builders are not pushed out of the way when a project comes to the line
- Direct competition with true commercial modular factories.
Many factories have adjusted themselves to these problems and are beginning to find better ways to integrate commercial into their production lines.
Now when you look at a modular home factory, you will see more than just the same old business of the past. Today they are running smoother and many of them have embraced commercial projects as never before.