flexiblefullpage - default
Currently Reading

Can Prefab Help Builders Overcome a Growing Labor Shortage?

Advertisement
billboard - default
Prefab + Panelization

Can Prefab Help Builders Overcome a Growing Labor Shortage?

Home builders are struggling to maintain a profitable construction pace amid a nationwide labor shortage, but prefab could offer a viable solution


July 25, 2022
Concrete wall slabs in prefab factory
Image: Stock.adobe.com

A growing labor shortage is strengthening the prefab structural component manufacturer industry as builders find innovative ways to keep projects on track with a smaller workforce. Revenue has grown 18% year-over-year for Prefab Structural Component Manufacturers, while component volume is up 14% annually thanks to a growing number of builders who switched to prefab as a labor alternative, John Burns Real Estate Consulting reports.

Still, the prefab industry faced its own challenges amid disrupted supply chains and heightened materials prices, and manufacturers felt that even more progress could have been made in new home construction projects if it hadn’t been for delays and cost overruns over the last several years.

Here’s what we learned in our first survey:

  • Revenue has grown +18% year over year, comprised of 14% volume growth and 4% price growth.
    • Component volume grew +14% year over year, as builders increased their orders with Prefab Structural Component Manufacturers. Even though prefab is a labor shortage solution, prefab manufacturers felt constrained by lack of labor.
    • Cost per component grew only 4%, as manufacturers were not able to pass along all of the cost increases they likely experienced. This may have been partially attributable to cost overruns on projects whose prices were negotiated up front.

Read more

Related Stories

Prefab + Panelization

This Bill Gates-Funded Startup Is Building Net-Zero Prefabricated Housing

Prefab startup Vantem is building net-zero homes from highly efficient tiles that cut energy consumption and cost for homeowners

Housing Giants

Marketing Industrialized Construction to Consumers

If you build it off-site, will they come? Here’s how (and why) to target consumers with clear messaging about factory-built housing

Business Management

Off-Site Construction Drivers and Enablers—The Great Convergence, Part 2

A closer look at what’s propelling the adoption of off-site construction methods in home building

Advertisement
boombox1 -
Advertisement
native1 - default
halfpage2 -

More in Category




Advertisement
native2 - default
Advertisement
halfpage1 -

Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.


Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Subscribe
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.