Quit Whining - Part 1
By: John Phillips
Whining? Well, that is probably too strong, but I wanted to get your attention.
Most of my professional experience has not been in the construction industry, and so much of the information I have accumulated has come to me relatively recently (often from LinkedIn posts). We all celebrate off site construction, there seem to be significant advantages using it, but there is an undertone of frustration: why doesn’t it have a bigger presence in the construction industry?
Depending on who you ask, and what you count (including “manufactured” homes, not just single family code compliant units, for example) the percentage for off site residential buildings is in the single digits, and that percentage has actually gone down in recent years. Thus, the frustration
Let me tell you a story. During the 1990s, I was the president and principal owner of a small solar electric company (they were all small in those days). I followed the renewable energy and sustainability sectors. A leading thinker in those sectors was an individual named Amory Lovins; his organization is called the Rocky Mountain Institute (RMI, based in Aspen Colorado). RMI had developed a well deserved worldwide reputation for analysis of sustainability issues and practical recommendations for dealing with the issues. They had an event in Aspen celebrating the 25th anniversary of RMI. It was well attended; I was there. The weekend was full of sessions with high level panelists; I remember executives from places like Coca Cola and Sky media in Europe. The whole weekend was moderated by Thomas Friedman, the columnist for the New York Times.
Because of the nature of the event, the presentations focused on the wonderful technology and tools that were available for sustainability, particularly renewable energy. Over and over again, Friedman asked the panels why more had not been adopted. Most of the panelists quietly avoided the question. When a few did venture answers, the answers were unsatisfying, and sounded like shallow bullshit. Geared to please the audience, the answers suggested corporate greed, bordering on collusion, was to blame. I am sure that sort of thing was a factor, but wasn’t much of an explanation.
My explanation: INERTIA. The energy sector is enormous, and has a large settled network that supplies traditional energy (oil, gas, electricity) efficiently to the world economy. Many of the new technologies and tools don’t fit into that network. An example would be electric vehicles; the charging infrastructure must develop before there is more adoption. Adoption happens slowly, as new ideas are integrated into the network. Thus, frustration that more isn’t happening faster.
Sound familiar? Offsite construction has similar issues. The construction sector is huge; a well developed integrated network delivers buildings. Modular construction is different enough it doesn’t easily fit. But it does work, and has value.
We should stop whining about our market share. It is basically irrelevant. We should do what most of us are doing anyway. Get up, go to work, find situations where the value you deliver matters, deliver quality products that exceed expectations. Growth will take care of itself.
By the way, be careful what you wish for. If demand for offsite construction doubled tomorrow, we couldn’t meet that demand.
3 FAQ's
1. Why hasn’t offsite construction gained a larger share of the construction industry?
One of the biggest challenges is industry inertia. Traditional construction operates within a deeply established network of processes, suppliers, and relationships. Integrating offsite construction into that system takes time, even when its benefits are clear.
2. What should offsite construction companies focus on instead of market share?
Rather than focusing on adoption percentages, companies should prioritize delivering quality products, exceeding customer expectations, and identifying projects where offsite construction provides measurable value. Consistent performance builds trust and supports long-term growth.
3. Is the offsite construction industry prepared for a sudden increase in demand?
Not necessarily. While increased demand would be exciting, the industry would need to expand manufacturing capacity, workforce availability, and supporting infrastructure to meet it. Sustainable growth requires scaling capabilities alongside demand.
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