Most Common Business Models in the Modular Construction Industry
Modular construction method has the potential to revolutionize the construction industry by reducing labor costs, decreasing construction time, and increasing efficiency. One of the key aspects of the modular construction industry is the various business models that companies use to operate and grow their business.
One of the most common business models in the modular construction industry is the "turnkey" model. In this model, a company will handle all aspects of a modular construction project, from design and engineering to manufacturing and installation. This model is attractive to clients because it allows them to work with a single company throughout the entire project, and eliminates the need to coordinate multiple vendors. This can save time and money, while also reducing the risk of delays or issues arising during the project.
`Another popular business model is the "manufacturer-builder" model. In this model, a company specializes in the manufacturing of modular units and then sells them to builders or developers to use on their projects. This allows the company to focus on their area of expertise, while still being able to participate in the construction process. This model also allows the company to sell their units to multiple builders or developers, increasing their revenue potential.`
A third model is the "design-build" model, which is similar to the turnkey model, but with a greater emphasis on the design and engineering aspect of the project. In this model, the company will work closely with the client to design and engineer the project, and then will handle the manufacturing and installation of the modules. This model is ideal for clients who have specific design or engineering requirements that need to be met.
Another business model is the "rental" model, which allows clients to rent modular units for a specific period of time. This model is ideal for clients who need temporary or short-term space, such as in the event of a natural disaster, or for construction projects that have a limited lifespan.
In conclusion, there are several business models that companies in the modular construction industry use to operate and grow their business. The most common models include turnkey, manufacturer-builder, design-build, and rental. Each model has its own advantages and disadvantages, and choosing the right model for your business will depend on your specific needs and goals. Regardless of the model, it is important for companies in the modular construction industry to have a solid understanding of the industry and the market, as well as a strong commitment to quality and customer service
Ready to build better?
Build better, safer and stronger at twice the speed when you opt for modDsys’ proprietary modular construction methodology.