PERMANENT - Modular Building Institute

permanent
modular
construction
2011 Annual Report
The Voice of Commercial Modular Construction™
1
COMPANY PROFILE:
our
global membership
MODULAR BUILDING INSTITUTE
Founded in 1983, the Modular Building Institute (MBI) is the only international non-profit trade association serving
the modular construction industry. Members are manufacturers, dealers and contractors of commercial modular
building projects, as well as associates supplying building components, services, and financing.
Members are located in 12 countries around the globe and provide all types of building space, from relocatable buildings
to complex multi-story permanent construction projects. MBI’s mission is to grow the industry and its capabilities by
encouraging innovation, quality, and professionalism through communication, education, and recognition.
Each year, MBI hosts World of Modular, the largest gathering of professionals in the modular construction industry.
The next World of Modular will be held March 24-26, 2012 in Orlando, Florida.
Canada
United Kingdom
Poland
Portugal
United States
Afghanistan
For more information about the industry visit, www.modular.org.
Mexico
Peru
ABOUT THE Industry:
Commercial Modular Construction
Australia
Chile
South Africa
New Zealand
Commercial Modular Buildings are non-residential factory-built structures designed to meet federal, provincial,
state and local building codes and in some cases designed to be relocated. The commercial modular building
industry is comprised of two distinct divisions:
Permanent Modular Construction – PMC is an innovative, sustainable construction delivery method
utilizing offsite, lean manufacturing techniques to prefabricate single or multi-story whole building solutions in
deliverable module sections. PMC buildings are manufactured in a safe, controlled setting and can be constructed
of wood, steel, or concrete. PMC modules can be integrated into site built projects or stand alone as a turn-key
solution and can be delivered with MEP, fixtures and interior finishes in less time, with less waste, and higher
quality control compared to projects utilizing only traditional site construction.
Relocatable Buildings – A partially or completely assembled building that complies with applicable codes,
and state regulations, and is constructed in a building manufacturing facility using a modular construction process.
Relocatable modular buildings are designed to be reused or repurposed multiple times and transported to different
building sites.
This report focuses on the Permanent modular construction
(PMC) Buildings division with a north american focus. see page 20
for our global outlook.
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TABLE OF CoNTENTS
about pmc
4-5
mcgraw-hill/ FMI reports
6-7
sustainability: minimizing waste
8-9
key markets served
10-15
data collection
16-19
Global outlook
20-21
case studies
22-24
2010 summary
25
BOARD OF DIRECTORS & mbi STAFF
26
3
Whistler Athletes’ Village
Days to complete: 392
PERMANeNT
About
MODULAR CONSTRUCTION
Countless industries regularly use permanent modular
construction including schools, banks, restaurants, hospitals,
medical clinics, day care centers and correctional facilities – just to
name a few. The number of industries [as measured by the North
American Industry Classification System (NAICS)] that utilize our
services are numerous, but the most common categories include:
236116 New Multifamily Housing Construction
236210 Industrial Building Construction
236220 Commercial and Institutional Building Construction
The primary benefits of permanent modular construction
include:
1. Streamlined construction process (in many cases
occupancy occurs 50 percent faster than with
conventional construction)
2. Resource efficient – less labor and fewer materials
wasted.
3. Reduced environmental impact – less site
damage, less material exposure and less waste in
landfills.
Commercial modular buildings are non-residential structures,
60% to 90% completed “off-site” in a controlled environment,
and transported and assembled at the final building site. This can
comprise the entire building or be components or subassemblies
of larger structures. In many cases, modular contractors work
with traditional general contractors to leverage the resources and
advantages of each type of construction.
The term “modular” describes a construction method or
process where individual modules stand alone or are assembled
together to make up larger structures. Unlike relocatable
buildings, PMC structures are intended to remain in one
location for the duration of their useful life.
An important but subtle difference for this report is that
modular construction refers to three-dimensional building
“modules” that are prefabricated off site and transported to the
site to make up the entire building, rather than prefabricated
mechanical systems or wall assemblies.
Permanent modular buildings may be Type V (wood frame,
combustible) or Type II (steel, concrete, non combustible) and
can have as many stories as building codes allow.
Primarily, four stages make up a modular construction project.
First, design approval by the end user and any regulating
authorities; second, assembly of module components in a
controlled environment; third, transportation of modules to a
final destination; and fourth, erection of modular units to form
a finished building.
Modular contractors manufacture buildings (or contract to
have buildings manufactured) at off-site locations. Responding
to customer requests, they typically operate as general
contractors on projects, coordinating the delivery, installation,
site work and finish of the building. Construction primarily
occurs indoors away from harsh weather conditions preventing
damage to building materials and allowing builders to work in
comfortable conditions.
Unique to modular construction, while modules are being assembled
in a factory, site work is occurring at the same time or in some
cases prior to construction. This allows for much earlier building
occupancy and contributes to a much shorter overall construction
period, reducing labor, financing and supervision costs. Saving even
more time and money, nearly all design and engineering disciplines
are part of the manufacturing process.
These practical time and money saving alternatives to sitebuilt buildings effectively meet the specialized needs of diverse
businesses. Customers served by modular construction include
federal, state, provincial, and local governments, school boards,
corporations, non-profit organizations, retail establishments,
healthcare providers, as well as individuals, partnerships, and
sole proprietorships. Other uses include medical facilities, airport
facilities, military installations, restaurants, churches, and remote
telecommunications stations.
Also unique to modular construction is the ability to simultaneously
construct a building’s floors, walls, ceilings, rafters, and roofs.
During site-built construction, walls cannot be set until floors are
in position, and ceilings and rafters cannot be added until walls
are erected. On the other hand, with modern modular methods of
construction, walls, floors, ceilings, and rafters are all built at the
Modular Construction Schedule
Design
Eng.
Permits &
Approvals
.
Site Development &
Foundations
Install & Site
Restoration
Time Savings
Building Construction at Plant
Site Built Construction Schedule
Design
Eng.
4
same time, and then brought together in the same factory to
form a building. This process often allows modular construction
times of half that of conventional, stick-built construction.
Permits &
Approvals
Site Development &
Foundations
Building
Construction
Site
Restoration
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SMART MARKET REPORT
FMI Survey Shows Modular as
McGraw-Hill Construction
Growth Opportunity
McGraw-Hill Construction recently released its latest SmartMarket Report, Prefabrication
and Modularization: Increasing Productivity in the Construction Industry which provides
insight into the role that prefabrication/modularization can have on improving productivity
in construction—including impacts on project schedule, costs, safety, quality and waste
reduction.
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.
Through techniques that have been around for decades, prefabrication/modularization
are seeing a renaissance as technologies, such as BIM, have enabled better integration
of prefabricated/modular components; as changes in design such as the emergence of
green have made certain advantages of prefabrication/modularization more important;
and as innovative offsite techniques have emerged. Out of over 800 architecture,
engineering and contracting (AEC) professionals surveyed:
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.
• 66% report that project schedules are decreased - 35% by four weeks or more
• 65% report that project budgets are decreased - 41% by 6% or more
• 77% report that construction site waste is decreased - 44% by 5% or more
"Prefabrication and modular construction processes have
been used for years, but today, with the emergence of new
technologies and construction practices, we have the ability
to utilize these strategies to create innovative and quality
buildings, while also improving construction productivity,"
said Harvey Bernstein, Vice President of Industry Insights
and Alliances at McGraw-Hill Construction. "These reported
productivity benefits of prefabrication and modularization are
particularly exciting in today's economy given the benefits of
creating superior buildings while saving cost, time and waste."
For more information, or to download the free report, visit:
http://construction.com/market_research.
6
“
Lean Construction, BIM, and Green Building Trends:
What is most striking about prefabrication/
modularization is its ability to enable all
these trends, in addition to being more
prominent because of them. It [modular
construction] brings all of them together to
improve productivity in construction.
”
“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.
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sustainability
minimizing waste
It is now widely accepted that the modular construction process is more resource efficient, not only in terms of labor
and money, but also with regard to material usage and waste. The previously cited McGraw-Hill Smart Market Report
(on page 6), indicated that 77% of architects, engineers and contractors surveyed reported a reduction in site waste.
Incredibly, 44% reported that site waste was reduced by 5% or greater.
The EPA reports that the average amount of construction and demolition waste generated for a non residential project
is 4.34 lbs/sq ft. For a 10,000 square foot facility, this amounts to 43,400 pounds of waste, or over 21 tons! If owners
are able to reduce this amount by just 5% using modular construction techniques, that translates into 2,170 pounds of
waste, or over a ton of waste per project diverted from the landfill.
Stephenson Park Preschool
Days to Complete: 122
Projects utilizing modular construction
also have the ability to reduce waste in
another manner. Due to the fact that these
buildings are designed and constructed
to be assembled on site, they are also
therefore “designed for disassembly” or
“design for deconstruction (DfD).” In short,
it is much more practical to disassemble
a modular project and salvage or reuse
significant components of the building
compared to a similar site built facility.
Repurposed modular buildings turn into Chetwynd Seniors’ Housing. Over 320 modular housing units
from the Olympic and Paralympic Village at Whistler were relocated and converted into 156 permanent,
affordable apartments for low-income seniors.
The increasing use of BIM technology
as well as the general public’s growing
disdain to pay for wasteful practices
are two key reasons why modular
construction techniques will continue to
gain in popularity.
The picture to the bottom right is an example of DfD. The original building was a 10-unit custom office. After 6 years of
use, the building was disassembled and sent to storage. In 2009, a development in Florida required a sales center. It was
determined that 6 of the original 10 units could be relocated and used with renovation. The renovated building features
10 ft. tray ceilings, custom millwork, granite countertops, and a portico entry with a four-plane clay tile roof system.
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BEFORE
RENOVATED REUSE (After)
Days to complete: 110
7,700 total sq. ft.
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key
MARkets
SERVED
Market Size
Permanent modular buildings make up approximately 42% of the total modular
construction industry’s $5 billion in annual revenues in North America (leasing
and sales of relocatable buildings account for the remainder). For 2010, these
companies reported revenue from the following top markets
5% Retail/ Hospitality
20% Multi-Family/Student
Housing/Dorms
Permanent modular buildings are considered real property, built to the
same building codes and requirements as site-built structures, and are
depreciated in a similar manner. As such, the markets for permanent modular
construction are similar to the markets for site-built contractors, with few exceptions.
6% “Other”
42% Education
EDUCATION
Residential Education Center
Days to complete: 270
26% Office & Admin
k-12 Education
From single classrooms to complete campuses, modular construction offers public, private, and charter schools what other construction
methods cannot: accelerated project timelines, more economical pricing, and less disruption. Permanent modular schools are
indistinguishable from other schools and can be constructed to any architectural and customer specifications. MBI members design
and build schools of all types and sizes using traditional building materials such as wood, steel, and concrete. Virtually any size
permanent school can be built, installed, and ready for occupancy in as little as 90 days. Perhaps most importantly, using off-site
technology, open construction sites are eliminated while school is in session. Students are safer and teachers can compete with less
disruption.
EDUCATION
Oregon Child Development Coalition
Days to complete: 287
HIGHER EDUCATION STUDENT HOUSING
From single dormitories to complete campuses, permanent modular construction offers public, private, and charter schools what
other construction methods cannot: accelerated project timelines, more economical pricing, and less disruption. Permanent,
modular student housing is indistinguishable from other school buildings and can be constructed to any architectural and customer
specifications. MBI members design and build student dorms of all types and sizes using traditional building materials like wood,
steel, and concrete. Virtually any size permanent student housing facility can be built, installed, and ready for occupancy, some in as
little as 90 days.
OFFICE & aDMINISTRATIVE SPACE
Permanent modular buildings serve as corporate headquarters, satellite bureaus, institutional and administrative buildings, and offices
for all business types. Modern single- and multi-story buildings can be configured in a number of ways to include independent offices,
conference rooms, elegant lobbies, kitchens, restrooms, and large open spaces for cubicles or other partition systems. MBI members
have architectural and engineering designs for workspace planning, storm water management, landscaping, parking, and zoned
heating and air conditioning. If it is time to capitalize on company growth, modular construction offers a fast, economical approach.
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BARRACKS for Enlisted Soldiers
Fort Hood UEPH
Days to complete: 337
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RETAIL & HOSPITALITY
Simply put, quicker occupancy equals quicker return on
investment. Modular construction is accelerated construction.
Why is this so important to banks, restaurants, convenience
stores, child care centers, and other retail establishments?
Because earlier occupancy means a customer generates
revenue faster. In fact, it’s not uncommon for many modular
buildings to be up and running in as little as 24 hours—
an important consideration for retailers of all types. Typical
retail applications include hotels and motels, restaurants
and diners, banks, golf pro shops, convenience stores, gas
stations, car washes, college bookstores, and concession
stands, to name a few. MBI contractors provide a full array
of services including site, mechanical, and electrical work.
Customers can accommodate their emerging business with
modular buildings customized to their financial needs, space
requirements, and deadlines.
HEALTHCARE
Perhaps a customer’s interest is in serving patients as quickly
as possible in the most safe and aesthetically-pleasing
environment available. If so, modular construction offers
quiet, safe, and clean applications for medical, surgical,
clinical, and dental use. The insight MBI contractors have
from designing and building thousands of medical facilities
has resulted in satisfied healthcare professionals the
world over. If an organization or community needs a new
rehabilitation clinic, emergency room, operating room,
hospital extension, laboratory, diagnostic center, or other
medical facility, remember that modular construction can
be used for custom-built facilities with the tightest budgets
while maintaining strict medical and aesthetic specifications.
Market Share
Learning Tree Daycare
Days to complete: 172
By many accounts, it can be expected for more owners,
developers and contractors to consider modular
construction practices. In fact, the recent McGraw-Hill
SmartMarket Report on modularization indicates that
contractors forecast a 22-23% increase in usage of
prefabrication and modularization over the next two
years. Additionally, a recent FMI survey indicated a growth
opportunity for modular construction.
The U.S. Census Bureau reports monthly the value of
construction put in place for residential and commercial,
and for public and private projects. Year end data for 2010
indicated that the total U.S. construction put in place was
about $788 billion annualized- $236 billion in residential
and $552 billion in non residential.
Administration Building
Days to complete: 151
The non residential category can be further delineated
into “buildings” and non building categories such as
power, highway and street, and water supply. Building
categories that align with industry key markets are:
lodging, office, commercial, healthcare, and educational.
These categories totaled $201 billion for year-end 2010.
The $2 billion PMC building market, therefore is roughly
one percent of this total.
University of Toronto Ticket Booth
Days to complete: 160
Kirkham Childcare Center
Days to complete: 259
Interior Below
UVa Medical Center
Days to complete: 151
PUBLICLY FUNDED FACILITIES
Governmental users consist of federal, state and local
public sector agencies and organizations, public education
entities, and military housing and administrative projects.
The industry has enjoyed success in focused niches such as
prisons and jails, courthouses, military installations, national
and border security buildings.
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Communications Building
Days to complete: 335
13
target market:
Student
housinG
Case Study:
Bryn Athyn College
Company: NRB, Inc.
Average Size of Modules: 12’ x 52’ x 14’
Total Square Feet: 24,342 sq. ft.
Days to complete: 251
First Place & bEST OF show
This 160-bed, 80,000 sq. ft. building, The Modules, is near Temple
University in Philadelphia, Pennsylvania. Designed by Interface Studio
Architects, the apartment project includes design-driven living space
and cutting-edge amenities. What’s impressive is not just that it is a
prefab, green, contemporary apartment building, but that it may be the
largest modularly-constructed LEED for Homes project in the nation.
Major features include light-filled common spaces, generously-sized
operable windows, environmentally sound finishes, and a green roof
terrace with dramatic views of the Philadelphia skyline. The project was
designed, bid, manufactured and occupied within 12 months.
Architectural Excellence
These three-story Residence Suites of Bryn Athyn College emulate an “old
world” charm prevalent on the campus, with the cut stone, brick and stucco
facade with lead coated copper trims and gutters. Each residence building
contains 6 apartment style suites, with 2 double and 1 single occupancy
bedrooms, bath and beautifully appointed open concept living spaces.
Painted gypsum in accent colors, Italian ceramic tiled floors in common areas,
quartz countertops and solid wood cabinets and stainless steel appliances all
come together to offer the students a luxurious living environment. A center
stairwell opens up two stories to display a large cathedral type chandelier.
Technical Innovation
The steel framed building with pre-poured concrete floors offers the
permanence and performance of conventional construction. The innovative
use of “faux” chimneys on each building houses the lower floor ADA
compliant laundry room and carries the mechanicals from the basement to
the third floor suites. The entire chimney structure was prefabricated off site,
and craned into position on site. Dormers were prefabricated at the plant and
installed on site with the roof.
Cost Effectiveness & Energy Efficiency
“Modularizing” the false chimneys off site, and pre-building the dormers
helped reduce the on-site time and cost as well as disruption to the campus.
Each room or area of the residences have Energy Star rated P-Tach unit heat
pumps installed for energy efficiency. Insulation is a combination of spray
foam in the roof truss and floor areas, and fibreglass with liquid spray applied
vapour barriers for the walls, exceeding most residential standards. These
buildings were completely built together at the plant, including stairwells,
ensuring fit and precision alignment of the modular components so site time
was minimized.
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FINANCIAL
DATA COLLECTION
PERMANENT MODULAR CONSTRUCTION
Data for this report was compiled from previously conducted
surveys with contractors and manufacturing companies (both
members and non–members of MBI). In addition, MBI obtained
data from a variety of sources including public statistics and
information, information obtained from state and provincial
modular regulatory agencies, and direct communication with
company leaders.
SURVEY RESULTS
average building project size
In many cases, a project can be entirely completed by a modular contractor. These turnkey projects typically range in size from 5,000
to 10,000 square feet. In fact, respondents indicated that 65% of their projects were under 5,000 square feet; 20% of projects were
between 5-10,000 square feet; and 7% of projects were between 10-25,000 square feet. Eight percent of projects reported were over
25,000 square feet.
In other cases, modular construction is integrated into the overall project with a traditional general contractor overseeing the site
work, foundation, utilities, and various phases of the building itself. These “hybrid” projects allow modular construction techniques
to be employed on much larger projects than the typical turnkey modular project. It is not uncommon for modular construction to
be utilized on hybrid projects exceeding 100,000 square feet.
Most modular contractors are not limited by project size, but rather by other factors such as bonding capacity, staff resources, or
simply a lack of understanding about the modular process by the owner or architect. While some companies are capable of much
larger projects, many survey respondents indicated that a single turnkey project in the $10-15 million range is well within their scope.
production and productivity
Modular manufacturers are located throughout North America, with larger “clusters” of manufacturers in Pennsylvania, Georgia,
Texas, Indiana, California, and Alberta CN. Most manufacturers in North America are single location operations and can competitively
transport units within a 500 mile radius of their plant. Peak employee size varied significantly obviously impacted by market and
geography as well as the physical size of the plant. While not necessarily an indication of actual activity, the average manufacturer is
approved to build in 20 states.
In general, larger facilities employ between 140-150 workers during their peak production, while smaller plants employ between 6070. Many economists and state agencies use a “multiplier” to determine an industry’s total impact. Common construction industry
multipliers range from 1.76 to 2.12, meaning that for every construction job, another 0.76-1.12 jobs is indirectly created.
The typical modular manufacturer produced about 158,000 square feet in 2010, producing an average of 232 “floors” or “modules.”
This production is about 7% less than reported in 2009. Each module is roughly 600-700 square feet, commonly 12 feet wide by 50+
feet in length. Transportation regulations are commonly the limiting factor in module size.
Depending on the level of customization required by the owner and architect, most modules leave the factory 60-90% complete,
with wiring, plumbing, structural, and mechanical systems inspected and approved before arriving at the site.
16
17
First Place
Permanent Education over 10,000 sq. ft.
Revenue & pricing
North America’s Largest Modular Project
Medical Education Training Center
Over 1 Million sq. ft. built off-site
Annual corporate revenue attributed to PMC was just under $10 million per company.
Many of these companies also generated additional revenue from other sources such
as general contracting services or through leasing activities associated with relocatable
buildings.
Companies reported an increase in pricing from material suppliers in 2010 compared
to 2009. Thirty-eight percent reported increases of 1-3%, while 19% reported
increases of 4-7%.
Fifty percent of the PMC companies are forecasting revenues for 2011 to be about the
same or slightly better than 2010 (1-5%).
market indicators
There are several market indicators that serve as predictors for the health and viability
of the commercial modular industry. By most accounts, 2010 started off slow and
ended with an overall decrease in non residential building activity. McGraw-Hill
Construction (MHC) reported that non residential building dropped 9% for 2010.
However, several indicators point towards an increase in construction activity in the
near future.
Non-Residential Construction Starts – MHC reported that new non residential construction starts for December 2010 jumped 25%, lead by a
significant increase in larger healthcare projects.
The Architectural Billings Index (ABI) is a leading economic indicator of construction activity and shows an approximate 9 to 12 month lag time
between architectural billings and construction spending, with a score above “50” indicating an increase in billings. The ABI for December 2010
was 54.2. This marked the first time in the last three years that the ABI was above 50 for two consecutive months.
In Canada, Reed Construction reported that commercial construction recorded nearly 30 million square feet of new project starts, 17% higher
than in 2009. This growth was driven by government office buildings, recreational, and retail sectors. Industrial construction, such as projects in
Alberta’s Oil Sands region, are expected to lead the modular construction activities in 2011.
School Population Increase in K-12
Public elementary enrollment is projected to continue a pattern of annual increases through 2016. Public secondary enrollment is projected to
decrease 2% between 2007 and 2011, and then begin increasing again through 2016. Public secondary school enrollment in 2016 is expected to
be about 2% higher than in 2007.
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Federal Government
While not as strong as in previous years, the federal government remains “Fortune 1” when it comes to procurement. Many construction
opportunities were put on hold while Congress grappled with continuing resolutions to patch the 2010 budget. Nonetheless, BRAC and other
military programs still present strong opportunities for modular construction.
research and development
The Modular Building Institute continues to advance construction industry competitiveness through a network of research and educational
partners. MBI has two affiliated foundations – the Modular Building Institute Educational Foundation, a U.S. based 501(c)3 entity, and the
Modular Building Institute Canadian Foundation.
Through these entities, MBI hosts student design competitions, awards scholarships, and underwrites white papers and other industry research.
MBI also supports and partners with university-based programs in architecture, engineering and construction management on white papers,
presentations, and research and development opportunities.
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global
OUTLOOK
MBI estimates the PMC market in North American is about
$2 billion, making this region the largest in terms of revenue. It is
expected that an additional $4 billion in revenue is generated in the
modular construction industry outside of North America, perhaps
higher. Data from regions that utilize modular on a regular basis is
difficult to obtain.
The UK is the world leader in high-rise modular construction, and Futureform
is undertaking one of the tallest modular buildings at 19 stories in Wembley. The project,
for client Victoria Hall is a student residence with over 438 student rooms. The striking
new building is split into three wings around a central spiral-shaped tower. This project
also is a ‘first’ in terms of the size of the modules which are exceptionally large, being
around 16m’s long and 3.8m’s wide.
Large markets for modular construction use include the UK, Japan,
and Australia, while China and India are poised to reshape the entire
construction industry. While smaller in terms of total revenue, regions
such as Scandinavia, where an estimated 90% of homes are prefab and
modular, are leaders in advancing modular construction techniques.
China & India – While it is virtually impossible to get accurate
construction data from these regions, no one will dispute the insatiable
appetite these giants seem to have for construction services and
materials. By some accounts, non residential construction spending
in India is expected to exceed US $300 billion by 2013, while China’s
market is expected to be double that figure. China builds the equivalent
of one “Chicago-sized” city each year. A one percent market share for
modular construction would equate to nearly US $10 billion in these
regions, five times the size of the current US market.
United Kingdom - In the U.K., the market for modular construction
is approximately $2.44 billion, of which 33% is associated with leasing
activity while 67% ($1.63 billion) is for sales of modular buildings. Key
markets in the U.K. are similar to the U.S. – education, healthcare and offices.
Europe’s Tallest Modular Building
Victoria Hall
805 Modules,
20 Built in 27 weeks.
The modular construction industry is driven by different markets
in different parts of the world. For example, the energy/extraction
industry utilizes modular facilities heavily in parts of South America
and Australia, as well as in Northern Alberta, Canada. Oil, natural gas,
and coal extraction often occurs in underdeveloped parts of these
regions, creating a demand for building infrastructure to accommodate
workforce housing and administrative office space. This adoption
of modular construction in the energy sector has often led to wider
spread acceptance in other markets such as education, as is the case in
both Alberta and Australia.
*Photos courtesy of O’Connell East Architects
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Projected Energy Metrics (kWh/year)
net Z
EnviroHomes Creates Landmark modular
Zero Carbon
School Building
c ase study
Haydon Bridge High School has recently taken delivery of the first zero carbon modular school building in the UK which was manufactured by North of
England based EnviroHomes Limited. Haydon Bridge High School was awarded £1 million to create a new building that would minimise the school’s
overall carbon footprint. The building is comprised of a 65 square metre classroom area, plus a 90 square metre science lab. The classroom area also
includes a chicken coup and incubator to help the students learn directly about the rearing and care of animals.
The result is a landmark building which not only showcases renewable energy but provides a state-of-the-art environment in which students can learn
about it. Just outside there is an area with polytunnels, a greenhouse and raised beds where students can grow their own produce.
It’s zero carbon, highly sustainable and finished to a very high specification. The attention to detail is fabulous throughout and the fact that it was
manufactured off-site meant the school didn’t have months of disruptive construction going on during term time. Jill Collinson is the Capital Projects
Officer at Northumberland County Council, responsible for Carbon Management Procurement, stated “We definitely see this method of construction as
the way forward for school buildings in the future. “
Simon Astill, Managing Director of EnviroHomes explains, “Right from the start the Haydon Bridge brief called for a zero carbon building. Our ‘fabric first’
approach means starting with the choice of insulation materials to be used. Then we selected the most efficient heating, lighting and control systems to
suit the needs of the building, the students and staff who would be using it. Finally we added renewable technologies to the building, which in this case
was solar thermal & PV and a wind turbine. In fact the addition of these gives the building an A+ energy rating which shows
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7882
0
Projected Energy
Consumption
Renewable Energy
Production
Net Energy Use
*Based on ASHRAE Benchmark kWh/year
The building received a LEED Platinum rating (99.5 points out
of 85), a 206 Green Point Rating, and EPA’s highest indoor
air quality rating, Indoor airPLUS. Additionally, this project
has qualified for the DOE’s Builders Challenge program that
sets a high bar for building energy efficiency. It was also the
winner of the 2009 Green Builder Home of the Year Award,
the PCBC Gold Nugget Award for Net Zero Energy, and AIA
San Francisco’s Energy & Sustainability Merit Award.
Some building features:
This is a purpose built, permanent building with full planning permission. The other key point to make is that our efficient modular construction method
provides a high quality zero carbon building, manufactured, installed and finished in 21 weeks. From the moment the manufactured sections arrived
on-site, there was a fully watertight building within 10 hours.
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*Photos courtesy of EnviroHomes Ltd. - Hayden Bridge High School, Northumberland County Council
modular live/ work townhomes
The 1,540 square foot, zero lot line, townhome provides a
ground floor work studio, 2-bedrooms, light-filled great
rooms, decks, and sustainable landscaping, in addition to a
one car parking garage.
Zero Energy System | High Indoor Air Quality | Resource Conservation
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net Zero energy
Located in a colorful mixed industrial/artist/residential urban
neighborhood in Oakland, California, ZETA launched the first
net zero energy, urban infill, multifamily project.
the building to be carbon negative, that’s to say the building will generate more power than it uses.”
Robert Doran, Principal Building Control Surveyor for Allerdale Borough Council commented, “My role was to check the building for compliance with
building regulations which involved regular inspections for quality control and consistency. Because this method of manufacturing is done inside a
controlled factory unit, consistency is much easier to achieve. In addition there’s no degradation of materials due to bad weather. All in all this is a very
efficient construction method which has resulted in a high quality building that’s fully compliant with all building regulations.
Case study: landcaster
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Passive solar design
zTherm: automated energy controller
Thermal storage conditioned basement
Ultra-efficient envelope: R-39 Roof, R-25 Walls, R5
exterior rigid foam, R-22 Floor, Serious Materials
Windows: R-5 & R-7 Energy Star Rated
Air-to-air heat exchanger
Whole-house integrated fresh air system
Heat recovery ventilator
Wastewater heat recovery system
High efficiency lighting – LED and CFL
EnergyStar™ appliances
100% photovoltaic power
Rigid insulation wrapped building system
High performance cellulose and spray foam insulation
Sustainable finishes including locally produced artisan
ceramic tiles, 100% recycled glass & cement composite
countertops, locally fabricated casework and salvageable
and recycled materials
*Photos courtesy of ZETA Communities, Nandita Geerdink, Louis Langlois and Taeko Takagiar
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case study:
energy efficiency
honorable mention
Green Building Design
and Technical Innovation
Performance I.Q. Classroom, built by M Space Holdings LLC and their affiliate Walden
Structures, Inc., is a 960 sq. ft. classroom with the utmost energy efficiency and technial
innovation. The classroom comes equipped with a thermal displacement ventilation (TDV)
system which regulates both the heating and cooling of the building. Cool air flows out of
a diffuser at floor level; as it starts to rise it picks up heat from the occupants and exits the
room through the exhaust vent located in the ceiling. This system produces improved indoor
air quality, eliminates the transfer of pollutants from one occupant to another, is almost ten
decibels quieter than other units, uses 40% less energy than a standard mixed ventilation
approach and creates a constant and comfortable air temperature. In addition to the TDV
system, the building contains one self-regulating thermostat and is energy management
system (EMS) ready. This technology allows the temperature of the classroom, to be regulated
by a central location, allowing the district to manage and regulate appropriate temperatures
and on/off times to save energy.
The structure of the classroom was designed for optimal daylighting. The building has a
vaulted open ceiling with clerestory windows, exterior light shelves, and operable casement
windows. The interior light fixtures have auto dimming ballasts that increase or decrease the
brightness of the artificial light in correspondence to the amount of natural light available
in the room throughout the day. The daylighting system also creates a more comfortable
environment for the occupants as flicker, glare and noise of fluorescent lights often causes eye
strain, irritation, headache, fatigue and/or stress.
The sound quality inside the classroom is superior. The TDV system’s low ventilation rate causes the fan motor to produce less noise than conventional
cooling systems. Also, the majority of the ceiling is made up of acoustic ceiling tiles. The tiles help to keep the classroom quiet by reducing the
reverberation of noise generated both inside and out of the building.
2010 SUMMARY
Research from construction industry experts such as McGraw-Hill
Construction and FMI indicate that prefabrication and modular
construction techniques are poised to grow at a much stronger
rate than traditional construction opportunities. The ability to
incorporate lean manufacturing techniques, Building Information
Modeling and sustainable construction processes are part of the
reason for wide spread optimism.
The reduced construction schedule advantage is appealing to any
owner or developer interested in maximizing return on investment.
In some cases, such as school campuses or healthcare facilities, the
reduced site disturbance coupled with the quick turnaround are
critical to the project’s success.
For these reasons, many Fortune 500 companies, government
agencies, architects, and entrepreneurs are fueling the growth of
the modular construction industry.
As research and awareness of these advantages becomes part of the
conventional wisdom, the market share for off-site construction is
expected to double over the next five years.
The classroom has a full steel moment frame structure, a concrete floor, 6” steel studs, and 5/8” drywall underlayment making it a strong and
durable structure. Materials were selected from recycled or recyclable products as much as possible. Recycled/recyclable products include, steel
components (i.e. steel frame, studs, door, window frames) acoustic ceiling tiles,
carpet, tile and fiber cement siding panels.
This classroom exceeds Title 24, California’s Energy Efficiency Standards for
Residential and Nonresidential Buildings, by 26% in interior lighting and exceeds
the total energy efficiencies in Title 24 by 40%. The building also has a web based
Crestron control keypad. This keypad controls the lights, thermostat, audiovisual
equipment and any other technology that may be present in the classroom.
24
25
Board of Directors
President
Mike Ridley
President
Britco Structures
President Elect
John Lieffrig
Region Vice President
ModSpace
Vice President
Michael Bollero
President/CEO
Southern Modular Industries, LP
Treasurer
Gary Bockrath
CFO
Acton Mobile Industries
Secretary
Wesley Carter
Sales Manager
Warrior Group
Past President
Joseph Lopardo
Vice President, Modular Buildings
Williams Scotsman
Executive Director
Tom Hardiman
Executive Director
Modular Building Institute
Cover Image: The Modules
Photo by Sam Oberter Photography
Back cover Image:
Kirkham Childcare Center
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2011 MBI Sponsors
Board Members:
Rick Bartolotti
President
Universal Modular Building Solutions, Inc.
Harry Klukas
Senior VP
Black Diamond Group
Kendra Cox
Production Manager - Stayton
Blazer Industries, Inc.
Nora McGrath
Director
M Space Holdings LLC
MBI sponsors are commercial modular construction leaders who
align themselves with MBI in a collaborative effort to promote the
industry, educate participants within the industry, and ensure a
positive and ethical business environment throughout the industry.
Champion Commercial Solutions
championhomes.com
DeLuxe Building Systems, Inc.
deluxebuildingsystems.com
Construction Simplified
800-843-7372 ext 281
johnerb@deluxebuildingsystems.com
TM
www.deluxebuildingsystems.com
M Space Holdings
mspaceholdings.com
8 Storeys
Above: Example of an 8 Story Building
William Duffield
VP and General Manger
McDonald Modular Solutions, Inc.
Christopher Peterson
Vice President, Finance & Operations
Satellite Shelters, Inc.
Walter Griffin
Modular Program Manager
Mule-Hide Products Co., Inc.
Laurie Robert
VP Sales & Marketing
NRB, Inc.
Garth Haakenson
CEO/President
Pacific Mobile Structures, Inc.
Kathleen Tell
VP Sales
Tell Manufacturing, Inc.
Bill Haliburton
Vice President, Manufacturing
ATCO Structures & Logistics, Ltd.
Jody Werner
Vice President & General Manager, Southeast
Vanguard Modular Building Systems, LLC
Doug Henriquez
Director
Clayton Building Solutions
Kathy Wilmot
Vice President
Wilmot Modular Structures, Inc.
MBI Staff
Universal Modular Building Solutions, Inc.
umodular.com
“Year-round assembly with up to
50% faster time to occupancy.”
Building Modular Mid & High Rise
Commercial Residential Structures
Throughout the Mid-Atlantic, Northeast, & Caribbean
www.deluxebuildingsystems.com
Building Modular Mid & High Rise
johnerb@deluxebuildingsystems.com
Commercial Residential Structures
Throughout The
Mid-Atlantic & Northeast & Caribbean
800.843.7372 ex. 281 |
NRB, Inc.
nrb-inc.com
MBI Headquarters
944 Glenwood Station Lane, Suite 204
Charlottesville, Virginia 22901 USA
Toll-free phone: 888-811-3288
Phone: 434-296-3288
Fax: 434-296-3361
info@modular.org
www.modular.org
Ramtech Building Systems
ramtechmodular.com
Walden Structures, Inc.
waldenstructures.com
Walden Structures Awarded NAVFAC Permanent
Modular Barracks
Warrior Group, Inc.
warrior-group.net
Size: 37,000 sq. ft.
Currently Under Construction
For more information, please contact us at: 801 Opal Avenue, Mentone, CA 92359
Phone (909)389-9100. Fax (909)389-9134. Website: www.waldenstructures.com
Executive Director
Tom Hardiman, CAE
x 158, tom@modular.org
Accountant & Office Manager
Annie Diggs
x 157, annie@modular.org
Operations Director
Steven Williams
x 153, steven@modular.org
Marketing Specialist
Joni Lane, LEED Green Associate
x 156, joni@modular.org
Communications Manager
Erin Whitt
x 152, erin@modular.org
Business Development Director
David Sikora
x 155, david@modular.org
Evans-Kimmell Hall
Days to complete: 113
© 2011 Modular Building Institute, all rights reserved.
27
All products are trademarks or registered trademarks of their respective owners.
The Voice of Commercial Modular Construction™
28
Modular Building Institute
944 Glenwood Station Lane, Suite 204
Charlottesville, Virginia 22901 USA
Toll-free phone: 888-811-3288
Phone: 434-296-3288
Fax: 434-296-3361
info@modular.org