According to a recent study from McKinsey*, “construction is the biggest industry in the world, and yet, even outside of crises, it is not performing well. The ecosystem represents 13 percent of global GDP, but construction has seen a meager productivity growth of 1 percent annually for the past two decades. Time and cost overruns are the norm, and overall earnings before interest and taxes (EBIT) are only around 5 percent despite the presence of significant risk in the industry.”
Monceau Real Estate has been exploring the Modular construction technology for low to mid-rise buildings. While it can lower construction costs by 20% and increase the construction speed by 50%, it also comes with challenges. Modular construction requires a larger upfront investment, a higher degree of coordination and an earlier planning than traditional construction.
Have you ever been part of a modular construction project? Are you aware of any other disruptive construction techniques? If so, please comment or DM me; we would love to hear your thoughts and feedback.
* “The next normal in construction”, June 2020
