The latest benchmarking report from architectural/engineering/construction technology analyst and content provider BuiltWorlds paints offsite construction as a sector in the midst of an evolution, revealing widespread internal prioritization of the concept as well as increasingly diversified facilities and methods. “Offsite construction, particularly prefabrication and modularization, is experiencing rapid growth and innovation across residential and commercial applications,” authors note. “As more and more groups look to implement offsite construction into their daily operations, the need for dedicated teams and facilities to deliver is growing in unison.”
The BuiltWorlds 2024 Offsite Construction Annual Benchmarking Report shows how the number of contractors with such teams jumped from 46 percent to 54 percent as surveyed year over year. However, while respondents reported an increase of offsite-specific staff, that didn’t translate to an increase in dedicated facilities. “Despite growing offsite teams and adoption of the delivery method more generally, data from the 2024 survey shows no meaningful change in the percentage of respondents with their own facilities for prefabrication and modularization,” observes BuiltWorlds Senior Research Analyst Sean Wrenn, report author.
Still, despite negligible growth in contractor-owned offsite shops, the functionality of existing facilities appears to be expanding. Since BuiltWorlds’ last offsite construction survey, single-trade facilities have decreased, falling from 24.4 percent in 2023 to 16.2 percent in 2024, while multi-trade facilities have significantly increased, rising from 22.2 percent to 35.1 percent. “By including multiple trades in a prefab or modular facility, builders can streamline construction processes, improve efficiency and coordination across trades, reducing overall costs—all of which impact a project’s speed to market,” says Wrenn. “Ultimately, organizations distancing themselves from single-trade facilities enable them to consolidate workflows, reduce redundancy, and improve integration across trades. While the initial investment may be higher, the long-term benefits in efficiency, quality, and cost savings often outweigh those of single-trade facilities.”
BEST TARGETS
When asked what components were best suited to modular and prefab construction systems, contractors pointed to mechanical, electrical and plumbing (23 percent), wall panels (17.2 percent), bathroom pods (16.4 percent), building envelope (14.8 percent), and structural framing (13.9 percent)—figures much in line with 2023 report findings. It was the same consistency when asked what components didn’t suit the building approach. “There were several materials that survey respondents didn’t feel worked as well for offsite construction,” the report reads, “such as hybrid components, masonry units, floorcovering, and glass.”
“Offsite construction has seen the most growth in highly repeatable sectors, such as data centers or multifamily structures, often composed of standardized units or components,” affirms Wrenn, adding that he’s also seen an uptick in offsite residential. “Many startups entering the offsite space specifically target this segment as a response to the dwindling stock of affordable housing. While those sectors currently appear to be the most ripe for offsite construction, the technology’s potential promises conceivable applications throughout the built world.” — BuiltWorlds, Chicago, www.builtworlds.com