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The Final Word: The State of the Offsite Construction Industry is Strong

This past October seemed to be Residential Modular Construction Month for industry conferences and events. The events I attended reflected a growing industry that’s poised to enter the mainstream.

In 2024, I had the privilege to serve as both the Chair of the Building Systems Councils within the National Association of Home Builders (NAHB-BSC) and as President of the Modular Home Builders Association (MHBA). Both organizations held events in October, and during that same month I also represented the BSC at the Conference and Hearings for the International Code Council (ICC).

Here are my takeaways from these events:

NAHB Fall Leadership Meetings. These were held in San Antonio, Texas. They were for NAHB as whole but, I was representing the BSC on the Board of Trustees.

It became clear at these meetings that NAHB members and leadership are discovering that building systems are no longer just an industry niche, but are quickly evolving into the way homes will have to be built in the future. Supporting the education and knowledge of its members is how NAHB helps them stay strong in their businesses. As part of that, the Association needs to keep members current with the developments and advances in building systems.

ICC Expo and Hearings. This was held in Long Beach, Calif., with 2,000 code and building safety officials from across the US in attendance. There was an Offsite Construction track for attendees, and the Exposition Hall included three small homes/ADUs.

I was on a panel that was part of the event’s plenary session. I was also on a follow-up panel in which code officials could ask questions — and they did! Questions ranging from how to address specific issues [What are the rules for offsite construction in states that have no modular program?] to very basic definitions [What are the differences between modular, manufactured, park model, RV and tiny homes?].

This was a great opportunity for those who evaluate and inspect to learn about what offsite construction is and how they should address it. There is no question, offsite construction is different and the review and approval process is different for each state and jurisdiction. It can be confusing for those in positions of oversight at each level.

The encouraging part of participating in the ICC Offsite Construction Panels was that the attendees really wanted to learn more. They see it coming to their areas. They know that we won’t address the housing crisis unless we get creative and find ways to build homes faster and more efficiently, which is exactly what they sense will happen when building offsite.

MHBA Conference. Wrapping up October was the Modular Home Builders Association’s National Modular Housing Conference in Pittsburgh, Pa. This year was record-breaking; sponsorship and exhibitors doubled, and attendance increased by more than 50% compared to the previous year. Not only are more builders discovering offsite modular construction, but developers and investors also are learning what it can do for them.

Even with the growing role of offsite at these events, we are still in the embryonic stages of its broad use. However, I saw that the state of the offsite construction industry is strong and getting stronger. By securing the interest of investors and developers, offsite construction will get what it needs to grow market share and increase market acceptance.

When the entire logistics/delivery system of offsite construction can deliver at scale, then the offsite construction industry will have reached the pinnacle of its evolution. What will that mean? Well, when we no longer call it offsite construction but just call it construction, we will have finally made it. And with the current strength of the industry, that day is going to come sooner than you think.

If you liked this article, you can follow Ken Semler on LinkedIn, where he offers daily insights and commentary about offsite construction.

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