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Challenges and Opportunities in Prefab and Modular Construction

Sept. 17, 2019
Modular construction companies can build multi-family apartment buildings in a fraction of the time it takes using traditional stick-built techniques. Check out the pre-assembled electrical and plumbing products in the wall panel on the crane.

For savvy electrical contractors with an eye on working smarter on job sites, using prefabricated electrical products or systems they build in their own shops or purchase from electrical manufacturers is nothing new.

But at this year’s NECA Show in Las Vegas, it seems like more exhibitors than ever were promoting prefabricated products. Whether the products were somewhat simple, like ground wires pre-installed in metal boxes, fixture whips, or boxes with screws already backed out, the electrical manufacturers seemed to have the same goal in mind — help electrical contractors work, faster, safer, and more profitably on job sites.

At least one electrical manufacturer thinks using prefabricated electrical products and adopting some LEAN concepts of project management won’t be optional in the future, because new competitors in the construction market can produce modular buildings in a fraction of the time than contractors employing traditional building methods.

In his NECA seminar, “Embracing Lean and Improving Profitability with Prefabm” ABB’s eFab Group Director Colin Ross said that many electrical contractors still rely on inefficient installation and project management methods developed decades ago. As a former general contractor, he was already familiar with many of the pain points contractors experience on job sites, including coordination of deliveries with suppliers, wasting time hauling product packaging from jobs, and other inefficient tasks. ABB hired him to build a prefab operation that would solve many of these issues. His team works closely with electrical contractors, distributors, and others in the supply and construction process to eliminate inefficiencies. One solution they developed for an electrical contractor working on Apple’s new headquarters in Cupertino, Calif., a few years back was to prefabricate the cable tray being installed and to eliminate much of the packaging by shrink-wrapping the tray to pallets.

Ross urged electrical contractors to study the new competitors in the construction market that offer modular building solutions, including pre-built walls with core mechanical, electrical & plumbing (MEP) already installed. One example he gave is Menlo Park, Calif.-based Katerra (www.katerra.com). The company is currently building thousands of multi-family housing units in the United States using modular construction techniques and construction components pre-manufactured at its factories. A case study on the Katerra website offers details on how the company was able to construct a basic multi-unit apartment building in Las Vegas in less than 90 days, when it would take more than 140 days to build a similar structure using traditional construction processes.

Katerra’s factories are heavily automated, and it uses robots and other automated equipment to cut and shape marble counter tops, produce wall panels, and eliminate other labor-intensive tasks. Ross says the company even owns its own forest to harvest the lumber it needs for projects, and a quarry for some of the stone products it uses.

He notes that electrical contractors and others in the electrical construction market can learn from how these new companies have streamlined the construction process. “There’s a better way to be doing this,” he adds.

About the Author

Jim Lucy | Editor-in-Chief, Electrical Wholesaling & Electrical Marketing

Over the past 40-plus years, hundreds of Jim’s articles have been published in Electrical Wholesaling, Electrical Marketing newsletter and Electrical Construction & Maintenance magazine on topics such as electric vehicles, solar and wind development, energy-efficient lighting and local market economics. In addition to his published work, Jim regularly gives presentations on these topics to C-suite executives, industry groups and investment analysts.

He launched a new subscription-based data product for Electrical Marketing that offers electrical sales potential estimates and related market data for more than 300 metropolitan areas. In 1999, he published his first book, “The Electrical Marketer’s Survival Guide” for electrical industry executives looking for an overview of key market trends.

While managing Electrical Wholesaling’s editorial operations, Jim and the publication’s staff won several Jesse H. Neal awards for editorial excellence, the highest honor in the business press, and numerous national and regional awards from the American Society of Business Press Editors. He has a master’s degree in communications and a bachelor’s degree in journalism from Glassboro State College, Glassboro, N.J. (now Rowan University) and studied electrical design at New York University and graphic design at the School for Visual Arts.

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