Modular construction brings cost, transport and labour benefits

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By John Devine

Special to Ontario Construction News

It’s a concept that has been around for a long time, and modular construction is helping to solve a lot of current problems, including the effort to bring more affordable housing to communities across Ontario.

Modular has a long and storied history. By some accounts, the origins of the housing model actually dates back to the 1600s. It’s detailed that during the California gold rush, homes were constructed in New York factories, and shipped west for the miners. Modular homes were used to provide housing to soldiers returning from the Second World War.

Factory-built structures were, and are, used in a variety of commercial, residential, and institutional projects. Where and how they are deployed pretty much runs the gamut, Kathleen Maynard, Senior Director, Building Innovation for the Canadian Home Builders’Association’s (CHBA) Modular Construction Council, said recently.

“Historically, modular was a good choice for rural and remote because you didn’t necessarily have the trades available in more remote regions. But now they are doing urban, suburban, urban infill … basically anywhere you can access.”

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The council was formed in 2017 out of the former Canadian Manufacturers Housing Institute (CMHI); Maynard was CEO of that organization. Its stated goal is to support the growing presence of factory-built modular construction in the industry.

“It was a reflection of where the industry was going … and a growing partnership of site builders and modular factories working together. Our focus when we formed the council was very much on the technical side, what really differentiates the modular method of construction from traditional housing.”

As well as the technical aspects, those differences, explains Maynard, include more predictability in costs, delivery, and workforce.

According to BuildForce Canada’s Forecast Summery Reports, the residential construction industry will require about 148,000 skilled workers over the next ten years to replace workers who are set to move into their retirement years, at a time when there are increasing demands for new home construction. Factory-built units can help alleviate the looming shortfall.

“At the CHBA, (the) modular construction council is really focused on advancing the factory-built side of things, and we continue to move that forward. Some people might think building a house means only working in outdoor conditions, but there are a lot of jobs now working on the factory-built side,” Kevin Lee, CEO of the CHBA, told The Report recently.

Modular homes come in a range of sizes for a variety of purposes, including increasing the availability of affordable housing. There has been a recent surge of interest in modular, says Maynard, as municipalities move to meet targets for lower-cost housing. She points to the Rapid Housing Initiative as one example of the push for this type of accommodation.

The initiative supports the delivery of affordable housing by:

  • Supporting the creation of new permanent affordable housing units
    • Covering the construction of new rental housing units, as well as the acquisition of land, and the conversion/rehabilitation of existing buildings to affordable housing
    • Aiming to commit all funds as quickly as possible to ensure housing is available within 12 months of agreements unless otherwise agreed upon

To end, initial funding of $1 billion was provided to address the housing needs of vulnerable people; it exceeded its goal of adding up to 3,000 new affordable units, supporting the creation of more than 4,700 homes across Canada. The second round, from June 30 to next March, will add another $1.5 billion in new funding, aiming to deliver a minimum of 4,500 new affordable homes.

Getting the product to market is another key difference between factory-built and site-built homes, says Maynard.

“The business model is different. Factories have a broader market-delivery focus. So, traditional site builders working in a particular community are very locally oriented, whereas a factory may be building homes for an entire province.”

Technical aspects include ensuring the units are durable enough to be shipped by rail and/or road. Some manufactured homes leave the factory 90 percent complete, only requiring placement and electrical/plumping connections, while other, multi-section structures, are assembled onsite.

“That might take a week to put together. Modules can be put into high-rises, or mid-rises, institutional, hotels and other rental units … it depends on the type of structure you are working on, the level of completion and how long it would take.”

Embedded efficiencies in this approach include having the foundation and other site-prep work done concurrently with the manufacturing of the units, resulting in time savings and reduced delivery costs, says Maynard. Many homes, she adds, arrive pretty much ready to move into.

“You can get a home that already has all of the appliances installed: kitchens, cabinetry, flooring … everything. And there are some modular units made for work sites, workplace accommodations, and they come with furniture already in them. It runs the complete spectrum.”

As well as cost, transport, and labour benefits that come with modular construction, Maynard says there are other advantages, including less disturbance for neighbours, and a reduced carbon footprint.

“There was research at the University of Alberta that showed fewer emissions with factory-built as apposed to site-built.”

The 2009 North Ridge CO2 Analysis Report – Comparison between Modular and On-Site Construction aimed to compare CO2 emissions resulting from on-site residential construction and factory-built units.

“Consolidating work at a factory reduces the CO2 emissions resulting from the transport of materials and labour as well as from construction operations. Waste materials are minimized, and the waste generated is easily reused and recycled in the factory. Generally, there is no need for large dumpsters to remain on-site for an extended period of time,” wrote the report’s authors.

“With a compressed site schedule, fewer workers are on-site, and for less time, and fewer materials are stored on-site. Furthermore, tightening the building envelope lowers the consumer’s energy bill due to the smaller heating/cooling system. LEED certification and NetZero programs can also be considered under this approach, since factory-based construction allows for better quality control in regard to such aspects as house sealing.”

The modular method of construction provides some solid solutions for the housing issues Canada is currently facing, including housing for seniors. “The factories create barrier-free options for accessibility challenges.” Included in those options for the elderly are the so-called granny-suites, says Maynard.

The modular solution has a long history, and if current trends continue, an equally interesting future.

“I know that all of the factories of our members are very, very busy … they are all working flat out,” says Maynard.

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