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The building and construction industry is in the midst of a considerable paradigm shift as modular construction and prefabrication are growing in prevalence and importance. These approaches redefine how structures are built as they offer efficiency, cost-effectiveness and sustainability – all values that have become central for both governments, regulatory bodies and consumers. Modular construction entails assembling a significant portion, often 60-90%, of a building off-site before transporting it to the construction location. You can clearly see the benefits to streamline the entire building process. Prefabrication performs a similar function. Construction companies are able to fully outsource component manufacturing and assembly. Doing so off-site shortens production cycles. The global modular construction market, valued at $91 billion in 2022, is projected to reach $120.4 billion by 2027. McKinsey reports a 51% increase in the North American permanent modular construction industry’s share of new projects between 2015 and 2018. Within that period, the total revenue doubled, which indicates the growth potential of the market. Prefabrication and modular construction offer a trifecta of advantages, which include cost efficiency, accelerated construction timelines and waste reduction. General contractors, architects and developers are increasingly embracing these methods to keep expenses in check and streamline project delivery. Dodge’s 2020 Prefabrication and Modular Construction Report reveals a significant shift in perception. Approximately 90% of respondents view prefabrication and modular construction methods as more beneficial than traditional approaches. The industry's enthusiasm for these methods is underlined by the fact that healthcare facilities are anticipated to reap the most benefits over the next three years. However, hotels, motels and multifamily residential structures closely follow suit. As the building and construction sector continues to evolve, prefabrication and modular construction have graduated from merely being trends to transformative elements shaping the industry’s future. Their ability to enhance efficiency and sustainability positions them as key players in the construction methodologies of tomorrow.

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