How Modular Buildings Offset Construction Supply Chain Issues

The construction industry is struggling with rising costs due to a crunch of several major factors, and it is not likely to significantly improve anytime soon. 

Like many industries, construction has struggled to combat inflation, fuel costs, labor shortages, and supply chain issues. Fortunately, modular construction is uniquely suited to be able to bypass and offset many of those problems. It’s what keeps modular construction affordable and available for businesses when site-built construction has become prohibitively expensive.

Supply Chain Issues in Construction

Major world events like the COVID-19 pandemic, global inflation, natural disasters (flooding, hurricanes, tornadoes), and Russia’s invasion of Ukraine have thrown a wrench in supply chain costs and implemented a high degree of unpredictability into the industry. Meanwhile, demand continued to increase which led to a shortage of both supplies and workers. This has led to rising costs and delays that are costing companies millions of dollars.

Will Construction Supply Chain Problems Improve?

There have been some signs that construction supply chain issues are leveling off. For example, shortages of aluminum, semiconductors, lumber, and roofing materials are expected to stabilize. However, other parts of the construction supply chain will likely take years to fully recover.

Many supply chain issues over the past few years were related to China’s zero-COVID policy, which instituted a large-scale lockdown whenever a few cases were detected in an area. It completely shut down parts of the global supply chain for weeks or even months at a time. More recently, China reversed its zero COVID policy and no longer institutes such widespread lockdowns. While COVID-19 outbreaks in China are their own disruption on global commerce, they are expected to decrease due to general exposure.

New and unexpected supply chain problems are still popping up from a variety of sources, and will likely continue to do so. Russia’s invasion of Ukraine led to skyrocketing fuel costs and a shortage of copper. Droughts in the United States have significantly hampered the ability of barges to move through the Mississippi River, which has slowed the supply of cement in much of the country.

Has the Supply Chain Affected Modular Construction?

Many construction supply chain issues have inevitably had an impact on modular construction. Challenges such as rising fuel costs and inflation are universal and affect all industries. However, modular construction is uniquely suited to be able to absorb those additional costs and offset them through smart and efficient build practices. It has allowed Mobile Modular to keep our modular building prices low and ensure that our units remain affordable.

How Much Do Modular Buildings Cost?

Mobile Modular has a wide range of modular units available, from single wide offices to entire complexes. The easiest way to find out the cost of a modular building that would be right for your business is to request a quote from our staff. We would be happy to share with you the purchase and lease options that are available, along with our financing options.

Why Modular Construction is Cost Effective

Labor

One of the biggest challenges affecting the construction supply chain right now is the significant labor shortage. Unfortunately, the shortage is not expected to let up anytime soon due to the low number of young people entering training programs for construction.

This is one of several areas where modular construction has the advantage over traditional construction. Modular buildings are constructed in a centralized, climate-controlled facility where employees have all of the best tools and materials for each task readily available. This allows modular construction laborers to be far more efficient than site-built laborers, which in turn means the shortage has less of an impact on modular construction.

In modular construction, each worker is highly trained in a small set of specialized tasks similar to an assembly line. Not only does this increase efficiency, but it also means new workers can be trained quickly. In site-built construction where each project is different and workers complete different tasks, training new employees requires more time and money. 

Build Process

Modular construction facilities allow buildings to be made and delivered much faster than traditional construction. This allows our clients to open or expand their businesses sooner and start making money faster. It also means there is much less disruption to the final site since there isn’t a months-long construction process happening there.

The speed of modular construction is especially important during the current period of high inflation and rising interest rates. The sooner the project is completed the sooner the loan can be closed and the interest rate can be locked in. Companies that wait on traditional construction may be paying more money for many years to come.

The efficiency of Mobile Modular’s build process also allows us to prevent waste and save on material costs. Have you ever gone past a construction site and seen piles of cut and unusable materials? A high level of waste is common in traditional construction because it is difficult to properly plan waste reduction and conservation of materials when every project is different. Mobile Modular has honed its material usage through the construction of thousands of buildings to be as efficient as possible.

Modular buildings also have fewer chances for error than site-built units due to limited variables, such as the number of workers who interact with the project.

Materials

Modular construction also allows companies to save on costs stemming from transportation. It’s much more cost-effective to ship a modular unit to a site than it is to send many separate shipments of different materials and assemble them on-site. Studies have shown that modular construction reduces the number of deliveries to the final site by up to 90% compared to traditional construction. When shipping costs are high due to a logistics labor shortage, the cost of fuel, and high demand—consolidating shipping and transportation needs can save a lot of money.

Another significant benefit of Mobile Modular’s efficient construction methods is that it works hand-in-hand with our commitment to sustainable build practices. Mobile Modular’s processes help reduce the overall carbon footprint of building construction in several ways, including reducing the amount of fuel that workers spend in their commute by having a single, centralized build location.

Learn How Modular Construction Can Help Your Business

The speed and efficiency of modular construction have allowed Mobile Modular to absorb the cost of construction supply chain problems and keep our units affordable. Reach out to our staff to find out how Mobile Modular’s buildings can help your business save money.