Offsite Construction Continues to Expand into New Markets
Although offsite construction has continued to grow in the traditional markets of multi-family housing, hospitality, healthcare, and student housing; a number of new markets are beginning to emerge and attract significant attention. Workforce demand, technological innovation, and the need for infrastructure development create new opportunities for offsite construction technologies including modular construction, prefabricated assemblies, and factory-built systems. Water and wastewater treatment facilities, modular data centers and relocatable workforce camps represent three of the most exciting new markets for offsite construction.
These markets share a number of similar characteristics that have contributed to the widespread use of offsite construction in other areas. They include high levels of time sensitivity (i.e. pressure), labor shortages, complexity of coordinating multiple trades and processes, requirements for repeated processes, and the desire to complete as much work as possible in a controlled environment.
These markets also require extensive electrical, communications, power distribution, controls, safety and supporting infrastructure. Therefore, distribution partners such as Wesco play a vital role in providing the necessary support.
Water and Wastewater Treatment Facilities
Although water infrastructure is generally not associated with modular construction, there is considerable potential. Water treatment facilities contain complex mechanical, electrical and control systems that must function reliably in harsh conditions. Increasingly, many parts of these systems can be designed, assembled and tested off-site.
Rather than sending every part individually to the field, contractors and integrators can use prefabricated assemblies, skids, control systems, electrical packages and other repeatable solutions. The advantages of offsite construction are well -known to those involved in offsite construction: better control during assembly, improved coordination, reduced congestion in the field and the opportunity to complete additional work prior to equipment reaching the site.
From a distributor perspective, this changes the nature of the conversation as well. The distribution channel becomes an integral part of the project's planning and supply strategy rather than simply the last stage in purchasing materials.
Modular Data Center Facilities
While very few markets are receiving as much attention as data centers, the demand for computing capacity continues to increase. The speed at which data centers can be deployed has become a major consideration. Modular and prefabricated approaches enable manufacturers to produce repeatable segments of data center facilities while simultaneously developing the site.
Components such as electrical distribution, power management, connectivity, communications, controls, cable management and supporting systems are now essential parts of the manufacturing strategy. Early coordination between the supply chain and manufacturing is particularly important here. Manufacturers must not only know what products are needed but also when they will be needed, how they will be delivered to the production facility and how they can be used to facilitate repeatable manufacturing. The opportunity is much greater than just providing individual components. It involves establishing a distribution strategy that enables production.
Relocatable Workforce Camps
Relocatable modular buildings are another rapidly expanding opportunity. Remote projects including energy projects, infrastructure development, mining, industrial construction, disaster response and other similar endeavors may require housing and support facilities for hundreds – or sometimes thousands – of employees.
These facilities may include sleeping quarters, restrooms, kitchens, dining facilities, offices, medical spaces and recreation areas. Modular construction is ideal for these types of environments due to its ability to mass-produce units off-site, ship them to the site, install them quickly and possibly relocate them as workforce needs change.
The standardization process becomes even more crucial as the number of units increases. Similarly, so does procurement. Electrical products, lighting, communications systems, safety systems, devices, controls and other building components must be readily available throughout large-scale production runs.
Distribution Becoming an Integral Part of the Offsite Strategy
Scale is the unifying factor connecting all three emerging markets. As offsite construction expands into large-scale infrastructure and industrial applications, manufacturers cannot view procurement as an afterthought.
Factors such as product availability, approved alternate products, lead times, kitting requirements, inventory management strategies and supplier relationships are increasingly impacting factory productivity. Entities Organizations like Wesco can assist manufacturers by linking them to the products, manufacturers, technical expertise and supply chain resources necessary for supporting these new applications. As a result, distribution plays a different role in offsite construction.
Instead of:
Order → Deliver → Install.
The opportunity is increasingly:
Plan → Coordinate → Source → Kit → Deliver → Manufacture → Repeat.
The Next Stage of Offsite
Growth in modular construction will not stem from any single market. Rather, it will result from utilizing industrialized construction techniques wherever they can provide a practical solution to a problem. Water infrastructure needs modernization.
Data infrastructure requires unprecedented capacity. Large-scale projects need workforce housing that can adapt to changing demands. Each presents a unique set of challenges – however each provides an opportunity for the offsite construction community.
As these markets continue to develop, manufacturers, contractors, suppliers and distributors will need to collaborate earlier than ever before. For the future of offsite construction is not solely dependent upon where we construct. Rather it relies on how effectively we manage the entire process of constructing.
FAQ
1: What emerging markets provide opportunities for modular and offsite construction?
Water and wastewater treatment facilities, modular data centers, and relocatable workforce camps are emerging markets where prefabrication and modular construction can help improve speed, repeatability, quality, and efficiency in the field.
2: Why is distribution important in modular construction?
Offsite manufacturing relies depends on reliable access to electrical components, communications equipment, controls systems, power distribution equipment, safety systems, and various other building products. Early collaboration with distribution partners can enhance product availability and flow of materials to production facilities while supporting procurement efforts and improving factory productivity.
3: How can Wesco support emerging modular construction markets?
Wesco can facilitate collaboration between offsite manufacturers and project teams by connecting them with products, supply chain resources, technical knowledge and sourcing strategies/distribution solutions for increasingly complex factory-built projects.
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