BUILDS - Modular Building Institute

Transcription

PERMANENT MODULAR
CONSTRUCTION
2013 ANNUAL REPORT
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TABLE OF CONTENTS
MODULAR CONSTRUCTION PROCESS
4-7
INTEGRATING MODULAR CONSTRUCTION
8-9
KEY MARKETS SERVED
10-12
MODULAR CASE STUDIES
13-19
INDUSTRY DATA
20-22
LOOKING FORWARD
24-25
BOARD OF DIRECTORS & MBI STAFF
26
COMPANY PROFILE:
MODULAR BUILDING INSTITUTE
Founded in 1983, the Modular Building Institute (MBI) is the only
international non-profit trade association serving the commercial modular
construction industry. Members are manufacturers, building fleet owners
and contractors of commercial modular building projects, as well as
associates supplying building components, services, and financing.
Members are located in 20 countries around the globe and provide all types
of building space, from relocatable industrialized buildings to complex
multi-story permanent construction projects. MBI’s mission is to grow
the industry and its capabilities by encouraging innovation, quality and
professionalism through communication, education and recognition.
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ABOUT THE
MODULAR CONSTRUCTION
PROCESS
U
nlike the federally regulated HUD-Code manufactured
housing industry, the modular construction industry
is regulated primarily at the state and local levels by code
and agency administrators. As with site built structures, the
modularly-constructed facility must meet the local codes
where the building is to be located. There is no special “modular
building code” or exception for a building constructed utilizing
the modular construction process. It is simply a different
and more efficient manner to assemble the materials and
components of a building.
Parallels can be drawn with the automobile industry. Materials
and components are delivered to a factory where the assembly
of the product occurs. The product is then shipped to another
location (distributor, end user). It sounds inconceivable to think
that it would be efficient for the customer to order all the
parts and components of an automobile, have them delivered
to his driveway, have the parts subject to inclement weather,
and then assemble his automobile on site. Yet we construct
buildings in that manner every day. The automobile industry
figured out a better process 100 years ago!
Modular construction can be utilized for commercial,
residential, institutional or industrial applications.
Commercial Modular Buildings are non-residential, factorybuilt structures designed to meet provincial, state and local
building codes. Commonly, these buildings are constructed in
accordance with the International Building Code (IBC) or some
code modeled after the IBC.
The commercial modular building industry is comprised of two
distinct divisions: PMC & RB, both represented by MBI.
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Relocatable Buildings (RB) – A relocatable building is a
partially or completely assembled building that complies with
applicable codes and state regulations, and is constructed in a
building manufacturing facility using a modular construction
process. Relocatable modular buildings are designed to be reused
or repurposed multiple times and transported to different sites.
Permanent Modular Construction (PMC) - PMC is an
innovative, sustainable construction delivery method utilizing
off-site, lean manufacturing techniques to prefabricate single
or multi-story whole building solutions in deliverable module
sections. PMC buildings are manufactured in a safe, controlled
setting and can be constructed of wood, steel or concrete. PMC
modules can be integrated into site-built projects or stand alone
as a turn-key solution, and can be delivered with MEP, fixtures
and interior finishes in less time, with less waste and higher
quality control compared to projects utilizing only traditional site
construction.
Residential Modular – One and two family factory-built
structures designed to meet state and local building codes,
commonly built to the International Residential Code (IRC) or
some code modeled after the IRC.
Institutional or Industrial – Modular construction in
reference to this application typically involves mechanical and
electrical systems, piping and components of larger industrial
structures such as off-shore oil rigs or industrial plants. When
utilizing the modular construction processes for industrial
components, the result is not typically a completed threedimensional (or volumetric) module as in the other cases.
This report focuses on the Permanent Modular
Construction (PMC) in North America.
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PERMANENT
FIRST PLACE
MEG Energy Christina Lake Lodge
Days to complete: 856
Interior Photos Below
Permanent Education over 10,000 sq. ft.
C
ountless industries regularly use permanent modular
construction, including schools, banks restaurants, hospitals,
medical clinics, day care centers and correctional facilities – just to
name a few. The number of industries, as measured by the North
American Industry Classification System (NAICS), that utilize our
services are numerous, but the most common categories include:
236116 New Multifamily Housing Construction
236210 Industrial Building Construction
236220 Commercial and Institutional Building Construction
An important but subtle difference for this report is that modular
construction refers to three-dimensional volumetric building
modules that are prefabricated off site and transported to the
site to make up the entire building, rather than prefabricated
mechanical systems or wall assemblies.
Permanent modular buildings may be Type V (wood frame,
combustible) or Type II (steel, concrete, non-combustible) and
can have as many stories as building codes allow.
Primarily, four stages make up a modular construction project.
The primary benefits of permanent modular construction
include:
1. Greener - Reduced environmental impact –
Less site damage, less material exposure and less waste in
landfill.
2. Faster - Streamlined construction process – In
many cases, occupancy occurs 50 percent faster than with
conventional construction
3. Smarter - Resource efficient – Less labor and fewer
materials wasted.
Commercial modular buildings are non-residential structures,
completed 60 to 90 percent off site in a controlled environment,
then transported and assembled at the final building site. This
can comprise the entire building or consist of components or
subassemblies of larger structures. In many cases, modular
contractors work with traditional general contractors to leverage
the resources and advantages of each type of construction.
The term “modular” describes a construction method or process
where individual modules stand alone or are assembled together
to make up larger structures. Unlike relocatable buildings, these
structures are intended to remain in one location for the duration of
their useful life -- thus, permanent.
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1. Design approval by the end user and any regulating
authorities
2. Assembly of module components in a controlled
environment
3. Transportation of modules to a final destination
4. Erection of modular units to form a finished building
Modular contractors manufacture buildings (or contract to have
buildings manufactured) at off-site locations. Responding to
customer requests, they typically operate as general contractors
on projects, coordinating the delivery, installation, site work and
finish of the building. Construction primarily occurs indoors
away from harsh weather conditions, preventing damage to
building materials and allowing builders to work in comfortable
conditions.
Unique to modular construction, while modules are being
assembled in a factory, site work is occurring at the same time, or
in some cases, prior to construction. This allows for much earlier
building occupancy and contributes to a much shorter overall
construction period, reducing labor, financing and supervision
costs. Saving even more time and money, nearly all design and
engineering disciplines are part of the manufacturing process.
Also unique to modular construction is the ability to
simultaneously construct a building’s floors, walls, ceilings,
rafters and roofs. During site-built construction, walls cannot
be set until floors are in position, and ceilings and rafters
cannot be added until walls are erected. On the other hand,
with modern modular methods of construction, walls, floors,
ceilings and rafters are all built at the same time, and then
brought together in the same factory to form a building. This
process often allows modular construction times of half that of
conventional, stick-built construction.
These practical time and money saving alternatives to site-built
construction effectively meet the specialized needs of diverse
businesses. Customers served by modular construction include
federal, state, provincial and local governments; school boards,
corporations, non-profit organizations, retail establishments, and
health care providers, as well as individuals, partnerships and
sole proprietorships. Other uses include medical facilities, airport
facilities, military installations, restaurants, churches and remote
telecommunications stations.
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Delivery Method
FIRST PLACE
It is of key importance to bring the modular contractor/manufacturer into the building process as early as possible as part of the team.
As such, the Design-Bid-Build process is a less than desirable approach. Projects utilizing a Design Build approach or Integrated Project
Delivery (IPD) allow the modular company to bring the industry advantages to the table early in the conversation. IPD is a delivery
system that aligns interests, objectives and practices through a team-based approach.
Chabad of Monsey
In many cases, a modular manufacturer is a sub contractor to a traditional general contractor on a project. However in some cases, a
modular manufacturer may also be the general contractor working directly with the end user. These manufacturers are often referred
to as direct or integrated manufacturers.
Critical Path Method (CPM)
TIPS FOR
INTEGRATING
CPM is a project management tool used to schedule a series of activities on a particular project in order to improve communication
and minimize scheduling conflicts (essentially, a flowchart of activities with a time line). It is a time tested and widely used tool in the
construction industry. However, the historical assumption of the practice is flawed and needs revisited. Most schedules assume a more
linear completion of tasks. On a typical construction project, you cannot start Task B until you complete Task A. Task C cannot begin until
Task B is completed, and so on. The modular construction industry literally breaks the model and allows for simultaneous completion
of tasks once considered sequential.
The modular building process is different from traditional construction, particularly at the beginning of the process. As such, some
owners and contractors have dismissed this efficient process because it isn’t “the way we’ve always done it.”
By the time a project has been designed, scheduled, let out for bid, and awarded, it’s often too late to bring in a modular contractor
wanting to “streamline the process” and change the schedule. What often results is either avoidance of modular or perhaps worse:
forcing a modular solution after the fact.
Modular Construction Schedule
Design
Eng.
Permits &
Approvals
.
Site Development &
Foundations
Install & Site
Restoration
TIME SAVINGS
Building Construction at Plant
Design Considerations
Site Built Construction Schedule
• Three-dimensional modules have widths that are typically nominal 8, 10, 12, 14, and 16 feet with 12 and 14 feet being the
most common. Framing dimensions are typically 2 inches less than nominal size.
Design
Eng.
• Module lengths are up to 70 feet, usually in 2-foot increments.
Permits &
Approvals
Site Development &
Foundations
Building
Construction
Site
Restoration
• Module heights vary from approximately 11 feet, 6 inches to 13 feet, not including the height of the unit’s transport trailer or
frame.
• Type V wood frame construction is the most common type of construction; however manufacturers also build with steel and
concrete and can meet the requirements for Type I, II and, III construction.
• Multi-story modular buildings can be built up to the maximum stories allowed by code. A majority of modular buildings are
1-4 stories but some have exceeded 10 stories in the U.S.
City of Arlington Public Works
Administration and Assembly Building
FIRST PLACE
Permanent Office under 10,000 sq. ft.
• Rest room areas should be designed so that a module “marriage line” does not split the space.
• Multiple roof framing styles are available. Some can be completed in the factory, and some may require the installation of
site-installed trusses.
• Modular buildings can be configured using modules of various lengths and widths.
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key
MARKETS
SERVED
“
This method of
constructing these buildings
helps conserve materials and
resources, and greater precision
in construction can allow for a
tighter, more efficient envelope.
“
- 2013 McGraw Hill Smart Market Report
EDUCATION
St. James Preschool
Permanent modular buildings are considered real property, built to the same building codes and requirements
as site-built structures, and are depreciated in a similar manner. As such, the markets for permanent modular
construction are similar to the markets for site-built contractors, with few exceptions.
EDUC ATION
From single classrooms to complete campuses, modular construction offers public, private and charter schools what other
construction methods cannot: accelerated project time lines, more economical pricing and less disruption. Permanent
modular schools are indistinguishable from other schools and can be constructed to any architectural and customer
specifications. MBI members design and build schools of all types and sizes using traditional building materials such as
wood, steel and concrete. Virtually any size permanent school can be built, installed and ready for occupancy in as little
as 90 days. Perhaps most importantly, using off site technology, open construction sites are eliminated while school is in
session. Students are safer, and teachers don’t have to compete with disruption.
HE ALTH C ARE
Perhaps a customer’s interest is in serving patients as quickly as possible in the most safe and aesthetically pleasing
environment available. If so, modular construction offers quiet, safe and clean applications for medical, surgical, clinical
and dental use. The insight MBI contractors have from designing and building thousands of medical facilities has resulted
in satisfied health care professionals the world over. If an organization or community needs a new rehabilitation clinic,
emergency room, operating room, hospital extension, laboratory, diagnostic center or other medical facility, remember
that modular construction can be used for custom-built facilities with the tightest budgets while maintaining strict
medical and aesthetic specifications.
HEALTH CARE
Medical and Dental Care Clinic
MULTIFAMILY
Modular construction offers the ability to provide condominiums and apartment complexes in about half the time as
traditional, site-built construction methods. More and more cities and countries are turning to modular construction
methods to deliver much-needed housing that is more cost-effective and more eco-friendly due to reduced waste and
in-factory processes.
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MULTI-FAMILY
La Almenara Apartment Housing
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OFFICE & ADMINISTR ATIVE SPACE
Permanent modular buildings serve as corporate headquarters,
satellite bureaus, institutional and administrative buildings, and
offices for all business types. Modern single- and multi-story
buildings can be configured in a number of ways to include
independent offices, conference rooms, elegant lobbies, kitchens,
rest rooms and large open spaces for cubicles or other partition
systems. MBI members have architectural and engineering designs
for workspace planning, storm water management, landscaping,
parking, and zoned heating and air conditioning. If it is time to
capitalize on company growth, modular construction offers a fast,
economical approach.
MO D UL AR CO NS T RU C T I O N
C A SE S T UD IE S
COMMERCIAL (RE TAIL /HOSPITALIT Y )
Simply put, quicker occupancy equals quicker return on investment.
Modular construction is accelerated construction. Why is this so
important to banks, restaurants, convenience stores, child care centers
and other retail establishments? Because earlier occupancy means a
customer generates revenue faster. In fact, once the modules are on site,
it’s not uncommon for many modular buildings to be up and running
in as little as 24 hours—an important consideration for retailers of all
types. Typical retail applications include hotels and motels, restaurants
and diners, banks, golf pro shops, convenience stores, gas stations, car
washes, college bookstores and concession stands, to name a few. MBI
contractors provide a full array of services including site, mechanical and
electrical work. Customers can accommodate their emerging business
with modular buildings customized to their financial needs, space
requirements and deadlines.
BEFORE
GREENER
// S C H O O L S
Barrie School
FA S TER
// H O SPI TAL S
Mercy Hospital
AFTER: Tecno Fast ATCO Rental Office
Renovated Reuse
SM AR TER
// U R BAN D E V ELO PM EN T
New York City Apartments
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SILVER SPRING, MARYLAND
T
he Barrie School campus in Silver Spring, Maryland is home to
two innovative permanent modular spaces that were built with
the school’s collaborative educational methods and concern for the
environment in mind.
The “Studio” houses regular classes in its two classroom spaces
and allows for additional meetings in a larger general space. When
collaborative group work is desired, walls fold away to allow the two
classrooms to merge, or enable the entire building to serve as a large
gathering space.
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PHOTO CREDITS: JIM BRADY
“Innovation in Design”
Across a connecting outdoor deck is the “Research and Learning Lab,”
which “emphasizes the use of new media and the interconnected nature
of our 21st century world,” according to the school’s blog. “A variety
of spaces and furnishings provide a wealth of options for students to
work, study, and research, both individually and collaboratively. Two
smaller spaces support smaller workgroups, distance learning, and long
distance or even international collaboration.”
The deck in between serves as an outdoor expanded learning space –
in line with the school’s mission to respect the environment.
The buildings themselves – which serve the campus’ middle-upper
school – also represent this philosophy. According to Damon Pross,
President of Modular Genius – the modular contractor – both buildings
are LEED qualified and were built with sustainability as a priority.
Twenty percent of the building materials contain recycled postconsumer products; 2.5 percent of the project cost utilizes rapidly
renewable materials, and 50 percent of the project cost uses certified
wood.
All interior paints and adhesives are non-toxic. With a shared awareness
of energy use and comfort, energy and water efficiency reach very high
levels and are even tracked on a main dash board just inside the entry.
PHOTO’S COURTESY OF: MODULAR GENIUS & HORD COPLAN MACHT
C A S E S T U DY
Total Square Footage: 6,480
Average Size of Modules: 12’ x 54’
Number of Modules: 10
Days to Complete: 11 months from
concept to completion (330 days), 6
months for construction (180 days)
• Total Turn Key (water/sewer/electric/
permits/environmental)
• LEED qualified Design Build custom project
G R EEN ER
BARRIE SCHOOL
•
•
•
•
Because a modular building is constructed off site in a factory, it’s
an inherently greener construction process. Materials can be more
easily tailored to the specific job, which produces less waste.
Modular not only helped keep the project green, it sped up the
permitting and construction process.
According Charles Abelmann, Head of Barrie School, “Modular
construction allowed us to move ahead with an aggressive
timetable and have quality control over many off-site and site
aspects of the project. We were able to have limited disruption as
we installed each building.”
Pross added that using modular also helped minimize the permit
and inspection process at the site because the modules were
inspected in the factory of Mobile/Modular Express, the modular
manufacturer. Modular Genius subcontracted Prevost Construction
to install the modules at the school.
“Also, we were able to provide concurrent construction, i.e., the
site was being completed at the same time the building modules
were being built in the plant,” Pross said. “This reduced the overall
construction schedule.”
The modular process, along with an innovative design from
architect firm Hord Coplan Macht, generated an optimal solution
for Barrie School.
“We were able to create an innovative design in a cost structure that
served the needs of the school. We are left with some remarkable
buildings that are connected to create a feeling of one facility with
great flexibility in how we use the spaces. We helped change our
community in how people think about modular construction,”
Abelmann said.
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JOPLIN, MISSOURI
Opens in Record Time
W
hen an F5 tornado destroyed St. John’s Regional Medical
Center on May 22, 2011, no one would have thought that a
new 150,000 square foot hospital would take its place and open
its doors in less than a year.
FIRST PLACE
Permanent Healthcare over 5,000 sq. ft.
C A SE S TUDY
MERCY HOSPITAL
Building Use: Acute Care Hospital
Average Size of Modules: 12’ x 60’ x 14’
Number of Modules: 224
Total Square Feet: 148,600 sq. ft.
FA S T E R
ST. JOHN’S
110 surgical beds, 18 ICU beds, 12 pediatric beds,
10 OB beds, 23 ED beds, 4 700sf ORs, 2 700sf cath
labs, MRI, 2 CT, 2 ultra, 2 nuc med and 2 RF
The team behind Aspen Street Architects and Walden Structures,
along with an army of dedicated workers, did the impossible in
Joplin, MO, where Mercy Hospital Joplin’s new state-of-the-art
facility opened on April 15, 2012. The new hospital was built in a
record 8 ½ months using modular design and construction.
The impressive hospital looks no different than a traditionallybuilt facility. The only difference is that each of the 224 steel and
concrete modules that make up the hospital were engineered and
manufactured off-site in a factory located in Southern California
while simultaneous site work – preparing the site and laying
the foundation – was completed in Joplin. The units were then
shipped across the country on large semi-trucks and train cars
and assembled like a giant jigsaw puzzle when they arrived.
The building not only exceeds code requirements, but is also 30
percent stronger than the original nine-story St. John’s Regional
Medical Center.
“We’ve worked for more than a decade to develop a better
alternative to traditional, stick-built construction,” said Dave
Hitchcock, Founder of Aspen Street Architects. “Mercy Hospital
Joplin is the end result, and when people see this facility, there
will be a wider understanding and acceptance of modular design
and construction’s place in health care.”
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PHOTOS COURTESY OF WALDEN STRUCTURES
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C A S E S T U DY
SM AR T ER
Jeff Brown, CEO of the development firm, explained
the choice to use modular. “I have always thought that
modular makes a great deal of sense. There is time
savings, improved quality and cost control. It is more
sustainable – more efficient, cleaner and has less
waste,” he said.
THE PROCESS
New York City Turns to Modular
Construction to Solve Housing Needs
O
n the heels of the ground breaking for the revolutionary
32-story modular B2 residential tower at Atlantic Yards in
Brooklyn, New York, Mayor Michael Bloomberg announced in
early 2013 an innovative new modular project for Manhattan.
The My Micro NY project, the winner of the adAPT NYC
Competition that called for designing, constructing and
operating the city’s first micro-unit apartment building, will
create 55 micro apartments from modules prefabricated by
Capsys Corporation at the Brooklyn Navy Yard. The development
team is composed of Monadnock Development LLC, Actors Fund
Housing Development Corporation and nARCHITECTS.
During the announcement, Bloomberg praised modular
construction for the benefits it will bring to the project.
“Modular construction…is faster, less expensive, allows for
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Though the micro apartments are small by typical apartment
standards – between 270 and 350 feet – they are designed
to optimize space and maximize a sense of openness. Features
include 9- and 10-foot ceilings, a 16-foot-long overhead loft
space, Juliette balconies, ample hidden storage space, and
numerous common areas to encourage resident interaction.
The small size enables New York City to help resolve increased
demand for one- and two-person homes within a city that has
limited space to grow.
Though the My Micro project incorporates new technology to
make a small space more livable, New York is no stranger to
modular construction itself. In the mid 80’s through early 90’s,
the Pennsylvania-based DeLuxe Building Systems developed
and built thousands of urban infill housing units for the city.
Their latest project is a seven-story upscale apartment rental
building on Broadway in the Inwood section of Manhattan,
developed by Jeffrey M Brown Associates.
“
– NYC Mayor Michael Bloomberg
at the press conference for My Micro NY
The Inwood project is slated for completion by the end of
Summer 2013. The 28-unit building will house a mix of
upscale studio, one, two and three-bedroom apartments.
Construction has begun for B2, the first of 15 planned
modular buildings at the $4.9 billion Atlantic Yards project
from Forest City Ratner Companies. Steel modules are
being fabricated by Banker Steel of Lynchburg, Va., and
then moved to a factory in Brooklyn Navy Yard, where
125 workers from FCS Modular – a new company formed
by Ratner and builder Skanska – complete the units to
an almost live-in-ready status before they are trucked to
the site and stacked to form what is believed to be, when
complete, the tallest modular building in the world.
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PHOTO’S COURTESY OF: MIR NO
URBAN LIVING
high levels of quality control and significantly reduces waste
and truck traffic. It’s also safer for workers as construction is
done inside in controlled environments,” he said.
For the micro apartments, highly-skilled workers will
prefabricate the building modules at Capsys’ indoor
facility in the Brooklyn Navy Yard. After site work,
foundations, utilities, and the construction of the
ground floor is completed using traditional methods, the
modules will arrive on the site complete with fixtures and
finishes. The mods will be craned into place over a period
of two weeks, then the brick facade will be built on the
development site. Residents are expected to move in by
September 2015.
Modular construction…is faster, less expensive,
allows for high levels of quality control and
significantly reduces waste and truck traffic. It’s
also safer for workers as construction is done
inside in controlled environments.
“
Because of the cost savings associated with modular
construction’s reduced site waste and expedited building
schedule, My Micro NY and the B2 Brooklyn tower will
include designated affordable housing units. Forty percent
of the My Micro NY units will be below competitive
market rents, and 50 percent of the 362 apartments in B2
will be set aside as affordable.
Market Share
T
he U.S. Census Bureau reports monthly the value of construction put in place for residential and commercial, and for
public and private projects. Year-end data for 2012 indicated that the total U.S. construction put in place was about
$885 billion annualized, $315 billion in residential and $570 billion in non-residential.
PERMANENT MODULAR CONSTRUCTION
INDUSTRY DATA
The non-residential category can be further delineated into “buildings” and non-building categories such as power,
highway and street, and water supply. Building categories that align with industry key markets are: lodging, office,
commercial, healthcare, educational and religious. These categories totaled $225 billion for year-end 2012. About $89
billion of this sub-segment or 39.6 percent is considered public construction.
Data for this report was compiled from previously conducted surveys with
contractors and manufacturing companies (both members and non–members of
MBI). In addition, MBI obtained data from a variety of sources including public
statistics and information, state and provincial modular regulatory agencies, and
direct communication with company leaders.
The permanent modular construction market in the U.S. is roughly $2.7 - $3.0 billion and therefore is roughly 1.2 – 1.3
percent of construction put in place in these markets.
Total U.S. market construction put in place through Dec 2012: (non residential – key modular markets)
“
Important industry trends, such as the
use of building information modeling (BIM)
and prefabrication and modularization, are
improving safety outcomes for those firms
that have embraced these new approaches.
“
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Market
Lodging
Office
Commercial
Healthcare
Education
Religious
Total
HONORABLE MENTION
$ Billion
11.6
38.3
47.3
40.4
83.7
3.7
225.0
% Inc/dec from 2011
16.1
9.1
3.5
-1.1
-2.2
-10.1
% Increase forecasted for 2013
8
10
10
5
3
0
Dutchess Community College Student Housing
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Cornell University
SURVEY RESULTS
PRODUCTION &
PRODUCTIVITY
Modular manufacturers are located throughout North America,
with larger clusters of manufacturers in Pennsylvania, Georgia,
Texas, Indiana, California and Alberta, CN. Most manufacturers
in North America are single location operations and can
competitively transport units within a 500 mile radius of
their plant. Peak employee size varied significantly, obviously
impacted by market and geography as well as the physical
size of the plant. While not necessarily an indication of actual
activity, the average manufacturer is approved to build in 20
states.
In general, manufacturers average 170 workers during their
peak production. Larger companies with multiple locations
employ as many as 4,000 workers, while smaller plants employ
between 60-70.
The typical modular manufacturer produced about 250,000
square feet in 2012, producing an average of 367 “floors”
or “modules.” In 2011, manufacturers reported an average
production of 290 floors per plant. The average size module
produced in 2012 was about 680 square feet. Transportation
regulations are commonly the limiting factor in module size.
Depending on the level of customization required by the owner
and architect, most modules leave the factory 60-90 percent
complete, with wiring, plumbing, structural and mechanical
systems inspected and approved before arriving at the site.
Fife Public Library
FIRST PLACE
Special Application: any square footage
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COAL YARD APARTMENTS - GRADUATE STUDENTS
“We predict that in the upcoming years,
modularization and prefabrication will play
an increasingly vital role in improving
the productivity of the entire construction
value chain.”
– FMI 2013 U.S. Markets Construction Overview
MARKET INDICATORS
The Architectural Billings Index (ABI) is a leading economic indicator
of construction activity and shows an approximate 9 - 12 month
lag time between architectural billings and construction spending,
with a score above “50” indicating an increase in billings. The ABI for
December 2012 was 52.0.
School Population Increase in K-12 – Public elementary enrollment
is projected to continue a pattern of annual increases through 2016.
Public secondary school enrollment in 2016 is expected to be about
2 percent higher than in 2007.
SUMMARY
The interest in modular construction from the architect,
engineer, contractor and owner community is at an all-time
high, due largely to the efficiencies gained through this
process. MBI offers a series of summits and conferences to
help educate end users about modular construction.
The modular construction industry is changing the way
the world builds – Greener, Faster, Smarter.
Company: Champion Commercial Structures
Location: Ithaca, NY
FIRST PLACE & BEST OF SHOW
Architectural Excellence
This four-story apartment building was designed to match
architecturally to the existing buildings already at Coal Yard Apartments,
and the broad roof overhangs and the substantial colorful brackets that
are reminiscent of the former terminal. The building is a center corridor
design with two and three bedroom apartments spanning multiple
modules, making the apartments feel open and airy to the prospective
renters. Interior amenities are matched to the requirements of the local
market for this type of renter and include hardwood flooring, custom
kitchens with extended height wall cabinets, and granite counter tops.
The modules are situated on a concrete parking garage that houses
parking, the elevator and mechanical systems. At the roof level, there is
a garden terrace for tenants to enjoy the views over town as well as the
sky and simple relaxation.
Technical Innovation
The building was manufactured with a partially completed two-hour
rated elevator shaft assembly incorporated into the design. As this
building was being placed on a single sill plate on a concrete slab, all of
the heat, plumbing, HVAC and other systems were complete inside the
building and run through minimal chase ways to the parking level. All
of the elevator, stair and chase openings were coordinated through the
design process to allow easy completion of the systems and required
fire separations. The EPDM roof system was installed at the factory over
tapered foam and seamed at module connections as the building was
being set, creating a completely weather tight building at the end of
every set day.
Cost Effectiveness & Energy Efficiency
Overall costs were very important on this project. Champion partnered
with the fire suppression company to provide a complete system to the
owner in the most cost effective way. The system was mostly installed
at the factory during production, leaving only the corridor connections
to the main line and supply system. Working directly with the owner
and architect, they did a cost analysis on many finish components
and value engineered the building to match the renters’ demands and
obtain the most cost effective way to reach the end product.
23
LOOKING
FORWARD
T
he Modular Building Institute continues to advance construction
industry competitiveness through a network of research and
educational partners. MBI has two affiliated foundations – the Modular
Building Institute Educational Foundation (MBIEF), a U.S. based 501(c)3
entity, and the Modular Building Institute Canadian Foundation.
Through these entities, MBI hosts student design competitions, awards
scholarships and underwrites white papers and other industry research.
MBI also supports and partners with university-based programs in
architecture, engineering and construction management through our
“Partners in Education” (PIE)program.
CURRENT PARTNERS & SPONSORS:
OFF-SITE CONSTRUCTION COUNCIL
FORMALLY LAUNCHED
University of Alberta Hole School of Engineering
Sponsored by MBI and Foundations
University of Utah Integrated Tech. in Architecture Center
Sponsored by M Space
Cal Poly Pomona College of Environmental Design
Sponsored by Silver Creek Industries
Catholic University School of Architecture
Sponsored by NRB Inc.
Clemson University School of Construction Management
Sponsored by MBI
Virginia Tech School of Architecture & Design
Sponsored by Mark Line Industries
Pratt Institute School of Architecture
Sponsored by Mark Line Industries
MODULAR CONSTRUCTION SUMMITS
WORLD OF MODULAR
“
T
73% of prefabrication/
modularization users report
having a fully inclusive and
widely observed safety program,
compared with 48% of those not
using prefabrication.
“
Partners In Education
he National Institute of Building Science’s Board
recently approved the creation of a new industry council: the
Off-site Construction Council. The mission of the Council is to serve
as a research, education and outreach center for relevant and current
information on off-site design and construction for governmental and
capital commercial facilities.
As a partner, MBI will help support the specific agenda of the
Council to:
• Provide a neutral forum for off-site construction interest groups
across the materials and construction types in the construction
industry working to share information and solidify the expert base
of the off-site industry sector
• Foster partnerships and integration of industry designers (architects
and engineers) with builders (fabricators and contractors) to
increase the productivity of the construction sector and promote
knowledge sharing across the building industry disciplines
World of Modular is MBI’s annual convention and the largest and longest
running industry event. For 30 years, MBI has provided professionals
in the modular building industry a place to network, exchange ideas,
learn from experts, discuss issues, display new products, and receive
well-deserved recognition. The event includes high-profile speakers,
top-notch educational sessions, exhibits, the latest trends in modular,
entertainment and more!
World of Modular is an open
forum for anyone interested in the
modular construction industry.
For suppliers of building products,
services, and financing, the MBI
trade show remains the best
place to reach manufacturers and
dealers of modular buildings.
Join us for World of Modular 2014, March 21 - 24
at the JW Marriott in San Antonio, Texas!
24
In an effort to reach out to developers, engineers, contractors and
architects, MBI has developed Modular Construction Summits -- a
smaller event model that is being replicated around the U.S. and Canada.
The first Summit was held in May at Pratt Institute in Brooklyn, New
York. More than 200 people from inside and outside the modular
industry attended to hear panel discussions on Permanent Modular
Construction for Multifamily Applications and Modular Solutions for
Disaster Relief: Respond, Recover, Rebuild. In the afternoon, attendees
toured the factory of Capsys Corp., an MBI member and the modular
builder for My Micro NY – a 10-story Manhattan apartment building
slated for occupancy in 2015.
In late June, we took the Summit to the Nation’s Capital, where Henry
Green, Hon. AIA, President and CEO of the National Institute of Building
Sciences, kicked off the event with a keynote presentation. One hundred
attendees heard panel discussions on Modular Solutions for Large
Mixed-Use Projects, Changing the Way the World Builds: Innovation
in Modular Construction, and High Performance Green Schools. The
last panel included a visit to the Green Schools Exhibit at the National
Building Museum, where the Sprout Space green modular classroom is
displayed on the front lawn. Summits were held in Vancouver, British
Columbia and Los Angeles, California in October 2013.
• Provide a mechanism for industry and academia to work through
knowledge transfer partnerships to advance off-site methods
and practices by identifying gaps in research, engaging in
R&D for commercialization of off-site systems; and promoting,
collecting and disseminating findings and best practices in off-site
construction
• Utilize the partnerships identified above to achieve standards for
off-site construction sectors in connection with other Institute
councils, promoting an integrated approach to building science/
technology delivery for the construction sector
Membership in the Council is open to any individual or organization
engaged directly or indirectly in activities supporting the purpose,
mission and scope of the Council and a member in good standing of
the National Institute of Building Science. The Council will be involved
in presentations for the 2014 Building Innovation Conference & Expo to
be held January 6-10 in Washington D.C.
25
Board of Directors
President
Michael Bollero, Sr.
President
Aries Building Systems, LLC
Vice President
Harry Klukas
Executive VP - International
Black Diamond Group
Vice President Elect
Kathy Wilmot
Vice President
Wilmot Modular Structures, Inc.
Secretary
Kelly Williams
Manager, Business Development
Champion Commercial Structures
Treasurer
Christopher Peterson
Vice President, Finance & Operations
Satellite Shelters, Inc.
2013 MBI Sponsors
Board Members:
Kevin Copenspire
Mobile/Modular Express
Devin Duvak
General Manager
Indicom Buildings, Inc.
Chris Gardner
Executive Vice President
Britco
Nora McGrath
Chief Administrative Officer
M Space Holdings LLC
Michael Rhodes
Owner
Silver Creek Industries
Laurie Robert
VP Sales & Marketing
NRB, Inc.
Mark Taylor
Vice President, Permanent Modular Construction
PCL Constructors Inc
Dave Tompos
Vice President
NTA, Inc.
Joe Vecchiolla
President, United States
Williams Scotsman
Charles Walden
Owner/President
Walden Structures, Inc.
Jody Werner
VP & GM, Southeast
Vanguard Modular Building Systems, LLC
BEFORE
championcommercialstructures.com
M Space Holdings
mspaceholdings.com
Branch Office
Renovated Reuse Office Space
Days to Complete: 160
MBI Staff
Past President
John Lieffrig
Vice President Sales
ModSpace
Executive Director
Tom Hardiman, CAE
x 158, [email protected]
Accountant & Office Manager
Annie Diggs
Executive Director
Tom Hardiman
Modular Building Institute
Operations Director
Steven Williams
Creative Director
Joni Lane, LEED Green Associate
Business Development Director
Dave Sikora
Member Services &
Events Coordinator
Catherine Adkins
Communications Director
Tracey Daniels
26
MBI sponsors are commercial modular construction
leaders who align themselves with MBI in a
collaborative effort to promote the industry,
educate participants within the industry, and
ensure a positive and ethical business environment
throughout the industry. We gratefully acknowledge
our Diamond Preferred, Titanium, Platinum, Gold
and Silver sponsors.
Britco
britco.com
© 2013 Modular Building Institute, all rights reserved.
All products are trademarks or registered trademarks of their respective owners.
Cover Photo Credits: MIR NO and Modular Genius
27
CHANGING THE WAY THE WORLD BUILDS
GREENER . FASTER . SMARTER .
944 Glenwood Station Lane, Suite 204
Charlottesville, Virginia 22901 USA
Toll-free phone: 888-811-3288
Phone: 434-296-3288
Fax: 434-296-3361
[email protected]
www.modular.org
28
TM
RELOCATABLE
BUILDINGS
2013 ANNUAL REPORT
CH
AN
TH
EW
AY
B THEGING
UIL
DS
GR
EE
FA NER
S
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AR R .
SM
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R.
W
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1
TABLE OF CONTENTS
MODULAR CONSTRUCTION PROCESS
4-5
ABOUT RELOCATABLE BUILDING MARKET
6-9
KEY MARKETS SERVED
10-12
INDUSTRY DATA
13-17
REGIONAL DATA
18-21
LABELING PROGRAMS
COMPANY PROFILE:
DEPRECIATION AND RESIDUAL VALUES
BOARD OF DIRECTORS & MBI STAFF
23
24-25
27
Founded in 1983, the Modular Building Institute (MBI) is the only international
non-profit trade association serving the commercial modular construction
industry. Members are manufacturers, fleet owners and contractors of
commercial modular building projects, as well as suppliers of building
components, services and financing. Members are located in 20 countries
around the globe and provide all types of building space, from relocatable
buildings to complex multi-story permanent construction projects.
MBI’s mission is to grow the industry and its capabilities by encouraging
innovation, quality and professionalism through communication, education
and recognition.
Each year, MBI hosts World of Modular, the largest gathering of professionals
in the modular construction industry. The next World of Modular will be
held March 21-24, 2014 in San Antonio, Texas. For more information about
the industry, visit www.modular.org.
2
3
RELOCATABLE
Meeting/Lounge Unit
ABOUT THE
FIRST PLACE
Relocatable Office under 5,000 sq. ft.
PROCESS
U
nlike the federally regulated HUD-Code manufactured
housing industry, the modular construction industry is
regulated primarily at the state and local levels by code and
agency administrators. As with a site-built structure, the
modularly constructed facility must meet the local codes
where the building is to be located. There is no special “modular
building code” or exception for a building constructed utilizing
the modular construction process. It is simply a different
and more efficient manner to assemble the materials and
components of a building.
Parallels can be drawn with the automobile industry. Materials
and components are delivered to a factory where the assembly
of the product occurs. The product is then shipped to another
location (distributor, end user). It sounds implausible to think
that it would be efficient for the customer to order all the
parts and components of an automobile, have them delivered
to his driveway, have the parts subject to inclement weather,
and assemble his automobile on site. And yet we construct
buildings in that manner every day. The automobile industry
figured out a better process 100 years ago!
Modular construction can be utilized for commercial,
residential, institutional or industrial applications.
Commercial Modular Buildings are non-residential
factory-built structures designed to meet provincial, state
and local building codes. Commonly, theses buildings are
constructed in accordance with the International Building Code
(IBC) or some code modeled after the IBC.
This report focuses on the Relocatable Buildings
Segment. See MBI’s Permanent Modular Construction
report for information on that segment.
4
The commercial modular building industry is comprised of
two distinct divisions, both represented by MBI:
Relocatable Buildings (RB) - A partially or completely
assembled building that complies with applicable codes
and state regulations, and is constructed in a building
manufacturing facility using a modular construction process.
Relocatable modular buildings are designed to be reused or
repurposed multiple times and transported to different sites.
PERMANENT
Appalachian State University
Permanent Modular Construction (PMC) - An
innovative, sustainable construction delivery method utilizing
offsite, lean manufacturing techniques to prefabricate single
or multi-story whole building solutions in deliverable module
sections. PMC buildings are manufactured in a safe, controlled
setting and can be constructed of wood, steel or concrete. PMC
modules can be integrated into site built projects or stand alone
as a turn-key solution, and can be delivered with MEP, fixtures
and interior finishes in less time, with less waste and higher
quality control compared to projects utilizing only traditional
site construction.
Residential Modular – One and two family factory-built
structures designed to meet state and local building codes.
Commonly built to the International Residential Code (IRC) or
some code modeled after the IRC.
RESIDENTIAL
The Grand Teton
Square Footage: 1, 837
Institutional or Industrial – Modular construction in
reference to this application typically involves mechanical and
electrical systems, piping and components of larger industrial
structures such as off-shore oil rigs or industrial plants. While
utilizing the modular construction processes, the result is
not typically a completed three-dimensional (or volumetric)
building as in the other cases.
5
RELOCATABLE
FIRST PLACE
ABOUT THE
Relocatable Single-Wide any square footage
Glacier Bay National Park
BUILDING MARKET
MBI estimates that there are a total of more than
500,000 code-compliant relocatable buildings in use in North
America today. Public school districts across North America
collectively own and operate about 180,000 relocatable
classrooms, with the industry owning and leasing about
330,000 buildings – roughly 80,000 of which are classrooms.
Additionally, many construction companies own a fleet of
construction offices that move from site to site. These figures
do not include “non-coded” units such as storage and shipping
containers, although these units typically make up about 15
percent of a provider’s fleet.
The Process:
Primarily, four steps make up the relocatable building cycle.
The total estimated value of industry owned relocatable
buildings is between $5.0 - $5.5 billion, with estimated annual
revenue of $2.5 billion in North America.
Publicly owned
Industry owned (fleet)
Totals
Classrooms
180,000
80,000
260,000
Other
N/A
250,000
250,000
1. Design approval by the end user and any regulating
authorities
2. Construction of modules in a controlled environment
Total
180,000
330,000
510,000
3. Transportation and assembly of modules at a site to create
the finished building
4. Relocation to a new site for next use or return to a qualified
plant to be repurposed
Specifications for modular buildings are usually communicated
to a manufacturer directly by a customer or through a fleet
owner. Fleet owners, responding to the space requirements of
retail customers, work with customers to order new buildings
from manufacturers and arrange for delivery and installation
of the buildings when construction is complete. Fleet owners
usually offer a variety of financing and leasing opportunities and
range in size from single location providers with little or no lease
fleet to large, well-capitalized companies with very large fleets.
6
Modular manufacturers produce buildings generally in
independent, single-location facilities. Responding to
fleet owner or customer requests, they generally operate
as suppliers of modular units. Construction primarily
occurs indoors away from harsh weather conditions,
preventing damage to building materials and allowing
construction to be uninterupted.
Customers served by relocatable buildings include
federal, state, provincial and local governments;
school boards, corporations, non-profit organizations,
retail establishments, healthcare providers, as well
as individuals, partnerships and sole proprietorships.
Other uses include medical facilities, airport facilities,
military installations, restaurants, churches and remote
telecommunications stations.
7
FLEXIBILITY
Some facilities are used as an adjunct to existing buildings, while others
are stand-alone facilities. Flexibility and reutilization are the hallmarks of
relocatable buildings. Unlike structures built on-site, which generally have
fixed utilization and occupancy design, relocatable units fulfill a unique
function of reutilization that is not site-specific. It is not unusual to have a
relocatable building serve a wide variety of users during its long life span.
The flexibility of these buildings makes them a secure investment. During
severe economic downturns, these conditions allow lessors to enjoy cash flows
adequate to service debt. This flexibility is further enhanced by the ability to
relocate buildings to more prosperous cities or industries as opportunities
arise. Certain market segments of the industry are counter-cyclical. This
is particularly true of education, prisons and governmental agencies that
want to transfer funding for facility needs from capital budgets to operating
budgets. This concept also applies to industries that may want to expand but
are uncertain about the long-term strength of their growth. Budget driven
companies often opt for leased facilities. In such cases, modular buildings offer
benefits and options without long-term capital commitments.
RAPID DEPLOYABILITY
No other method of construction allows for such
rapid deployment of space. In cases of large scale
natural disasters, code compliant relocatable
buildings can be deployed within days to provide
shelter, medical clinics and classrooms to help
restore a sense of normalcy to a community.
SHORTER DEPRECIATION SCHEDULES
The primary difference between permanent construction and relocatable buildings is that in many cases,
relocatable buildings are not permanently affixed to real estate. This allows for the building to be considered
personal property or equipment and depreciated over a shorter span. While MBI provides a guideline in this
appendix, it is important to consult a professional tax advisor on this matter.
SUSTAINABILITY
REMOTE LOCATIONS
Given that relocatable buildings are constructed
offsite in controlled settings, finding a skilled labor
force in remote locations is less of an issue. From the
hottest, driest desert locations to the coldest, most
severe winter climates, relocatable buildings can be
utilized anywhere.
Relocatable buildings have been frequently criticized as being less than energy efficient structures in and of
themselves. However, in recent years, many end users are beginning to realize the positive environmental impact
of relocatable buildings. The very fact that the building is designed and constructed to be reused and relocated at
multiple sites eliminates the need to build new structures at each of the subsequent locations of the relocatable
building. In short, one relocatable building moved to 10 different locations throughout its life takes the place of
the energy required and waste associated with constructing 10 separate buildings. Relocatable buildings are 100
percent reusable.
FIRST PLACE
Commercial Housing over 10,000 sq. ft.
Poplar Creek/Birch Mountain Open Camps
Fort McMurray, AB
Square Footage: 298,700
8
9
key
MARKETS
SERVED
R E LO C ATA B L E
EDUC ATION
EDUCATION
KIPP Blytheville College Preparatory School
Relocatable buildings have become a critical factor in managing student demographics and increasing enrollments. Relocatable
classrooms are also ideal for swing space during new construction or renovation. Convenient, flexible, cost-effective temporary
buildings can be delivered and operational in as little as 24 hours. These classrooms are measured for quality and code compliance
by state or third-party agencies through routine and random inspections, testing and certification services.
Customers may choose single classrooms or arrange multiple buildings in clusters to create a campus feel. MBI members supply
steps, decks, ramps and even furniture. Members also offer lease, purchase and lease-to-purchase financing for a variety of public
and private school needs. These classrooms are sometimes referred to as temporary, portable or mobile classrooms.
School districts across North America are collectively the largest owners of relocatable classrooms, with about 180,000. California
schools own close to 90,000 units; Texas schools own about 20,000; and Florida owns about 17,000. Typically larger school districts
with high growth are more likely to own the units, which explains why California, Texas and Florida have so many. States like
Georgia, North Carolina, Virginia and Maryland own and operate about 3,000 each.
GENER AL OFFICE
GENERAL OFFICE
R&D Engineering and Support Facility
When production demands increase, relocatable buildings can temporarily enlarge a current facility without permanent alterations
to the site. Because the space is not permanent, many companies are able to expand without the budget approval process necessary
for traditional capital expenses. Relocatable offices can be single- and multi-story buildings configured to include independent
offices, conference rooms and large open spaces for cubicles or other partition systems. Large and small businesses, as well as local
and state governments, are typical users of relocatable office space.
RE TAIL
Earlier occupancy means quicker return on investment. For retail occupancies, this can mean significant cash flow advantages.
Standard floor plans are available for immediate delivery while custom buildings are built to specifications in weeks, not months.
Unique to the modular process is concurrent construction: site work occurs at the same time that buildings are being put together
in a quality-controlled factory.
Typical retail applications include new home sales centers, banks, golf pro shops, automobile fleet ownerships, college bookstores
and concession stands. If a client’s emerging business needs are short term, temporary space will accommodate their financial
situation, space requirements and deadlines.
10
RETAIL
Home Federal Bank
11
HE ALTH C ARE
Relocatable buildings for health care applications are designed and constructed to
uncompromising standards of quality. A customer’s new clinic, hospital extension,
laboratory, diagnostic center, MRI unit, dentist office or other medical facility can be open
for business and serving communities in as little as a few days. Is your interest in serving
patients as quickly as possible in the most safe and aesthetically pleasing environments
available? These facilities offer quick, quiet, safe and clean buildings with an unlimited
choice of interior décor and furniture and equipment leasing.
CONSTRUC TION-SITE & IN-PL ANT
Relocatable buildings have their roots in construction-site trailers, where speed, temporary
space and relocatability are important. Used as standard field offices, construction site
and in-plant buildings are available for immediate delivery. Standard construction is
wood, but steel units are available to meet noncombustible requirements. In-plant
buildings are available as single- or two-story units for industrial environments with
noise-reducing insulation, and are typically moveable by forklift and include electrical
and communications wiring, heating, air conditioning and even plumbing.
SECURIT Y
Relocatable buildings can be custom built for a variety of access and control situations. Toll
booths, tickets sales offices, guard stands and weigh stations are common applications.
One- and two-story wood and steel buildings have straight walls or walls that are tilted
to improve views and reduce glare. MBI members supply a full line of portable storage
containers for either short- or long-term. Heavy-duty storage units feature ground-level
entry with double-swing doors for easy accessibility and are ideal for construction-site
storage, equipment storage, warehousing, recordkeeping, industrial manufacturers,
retailers and others.
INDUSTRY DATA
RELOCATABLE BUILDINGS
We would like to thank AccuVal Corporate Valuation and Advisory Services for assisting
with data collection. In addition to aggregate data provided by AccuVal, data for this
report was compiled from a variety of additional sources, including a prepared survey
questionnaire sent to members and non-members in the industry, public SEC filings,
information obtained from state and provincial modular regulatory agencies, and
direct communication with company leaders.
Of the estimated 330,000 code compliant relocatable buildings owned by the industry,
MBI obtained data from companies owning 260,681 or 79% percent of the industry
owned market.
It is important to note that not all data collected from each company was used in every
statistical calculation. Where possible, we have indicated the percent of the fleet used
in various calculations. This report is not intended to be scientific in nature. Rather, it
represents the most comprehensive single source of data on a diverse industry over a
broad geographic region and within multiple markets.
EQUIPMENT & STOR AGE CENTER S
Economical and convenient equipment and storage buildings offer onsite protection
from inclement weather and theft. Day in and day out, relocatable buildings offer
durability and strength. Equipment shelters for construction sites, chemical storage
buildings, temporary generator housing and other applications are designed and built
by MBI members to guard a client’s investment. These buildings can be as simple as
steel containers to units that are heated and air conditioned with exteriors of brick, stone
aggregate or stucco.
EMERGENC Y HOUSING/DISA STER RELIEF
There is simply no other means of providing fast, transitional shelter and basic community
needs following natural disasters than relocatable buildings. Relocatable buildings can
be quickly and efficiently deployed for emergency shelter, medical and educational
needs, or to accommodate relief workers.
12
13
“
For 2012, fleet owners
reported selling units at an
average sale price to original
cost ratio of 1.31 to 1.
FINANCIAL
“
SURVEY RESULTS
The relocatable buildings segment tends to track with overall construction and equipment rental activity. An increase in new construction
starts generally means an increase in construction site office rental and transitional or swing space needs during construction.
FLEET SIZE/COMPOSITION
The total industry owned fleet size is approximately 330,000, down slightly from the prior year.
Education and health care markets were bigger
revenue drivers in 2012 compared to previous years.
Of note, the percent of revenue from the health care
market has more than doubled over the past five years.
Construction site offices historically drive a larger
percent of revenue, but construction activity overall
has been down, impacting this revenue stream.
Lease Fleet
6% Energy/Industrial
12% “Other”
30% Classrooms/
Educational Units
Fleet owners participating in the survey had revenue ranging from $150,000 to in excess of
$500,000,000. Income from the three largest companies engaged primarily in the sale and
lease of relocatable buildings exceeds 50 percent of the total industry revenue. The 10 largest
fleet owners account for greater than 75 percent of total revenue, while the top 20 account
for 90+ percent.
Among the regional fleet owners with branches in multiple states and territories, average revenue is in the $30 to $50
million range. Finally, there are numerous independently owned small fleet owners with one or two local branches.
Typically, these fleet owners generate less than $5 million in annual revenues.
8% Retail/Commercial
10% Health care
Fleet owners generated revenue from the following sources:
16% General Offices/
Administrative
18% Construction Site Offices
FLEET UTILIZATION
Leasing Activity – 48%
Service – 25%
(up from 45% in 2011)
(transportation, installation, stairs, ramps, etc.)
Utilization is commonly determined in one of two ways:
1. By dividing the total number of units on lease by the total number of units available to be leased.
2. By dividing the cost of the units on rent by the total cost of the equipment available.
Sales – 27%
For purposes of this report, method 1 was used. The local economy, geographic markets served, competition,
as well as fleet composition, play a major role in fleet utilization.
On average, fleet owner utilization rates have been flat or decreasing for the past several quarters, but showed signs of improvement
in 2012.
At year end 2012, fleet owners reported an overall utilization of 63.77% across all markets and regions. MBI obtained data further
segmenting utilization by product type:
(down from 30% in 2011)
Sales activity comes from the sale of both new and used buildings. Our survey has demonstrated year after year that fleet
owners are able to sell their used buildings between seven and 10 years after original purchase for at least 100 percent of
the original cost. For 2012, fleet owners reported selling units at an average sale price to original cost ratio of 1.31:1, up from
1.15:1 in 2011.
Singlewides – 68,105 units – utilization at YE 2012 = 65.94% vs. 63.1% at YE 2011
Office complexes 49,885 units utilization at YE 2012 = 68.77 vs. 67.6% at YE 2011
Classrooms/Educational units 27,317 units utilization at YE 2012 = 49.25%
Fleet utilization is further analyzed by region on pages 20-21.
14
Source: AccuVal
15
BUSINESS OPERATIONS
FIRST PLACE & BEST OF SHOW
Retial or Hospitality over 2,000 sq. ft.
In order to recoup the initial capital investment in a unit, a fleet owner typically
needs to have the unit on lease for about 44 months. The average lease term
per customer is 24-28 months. Once the initial investment is recouped, it is
not uncommon for a fleet owner to continue leasing the unit to recover the
investment a second time, and finally sell the unit (on average after 7-10 years)
at an average sales price to original cost ratio of 131% percent of the original
investment.
When asked about depreciation and residual values of the lease fleet, responses
varied based on condition and capital improvements to the fleet, market use of
the fleet, and the composition of the types of units in the lease fleet (construction
offices, classrooms, etc.). A majority of the units in the industry lease fleet are
depreciated over a 20-year period with a 50 percent residual value.
The economic life (different than depreciable life) of a leased relocatable
building is determined by comparing the total cost of maintaining the asset
with the income producing capacity over its useful life. Cost includes the initial
manufactured cost plus all expenditures for items such as maintenance and
taxes incurred during its life. Income includes lease revenue during the building’s
useful life and sale value upon disposition. Residual value is understood to be the
anticipated “value” of the building at the end of the lease.
Aviara Sales Centre - Custom Presentation Centre
2,400 total sq. ft.
Interior Photos Below
Based on a 2011 report by Sage Policy Group analyzing thousands of relocatable
building transactions over a 10 year period, the average annual return on
investment of a relocatable building sold was 18 percent, which was achieved
after an average holding period of 5.8 years. (Source: Sage Policy Group, Inc. The Economic & Financial Performance of the U.S.
Modular Building Industry)
In general, relocatable buildings, if property maintained and operated, have useful lives comparable to any other building type.
Capital improvements, such as HVAC replacement and roof replacement, are frequently made to these units, which can extend
their useful lives for several additional years.
The typical relocatable building will be moved an average of seven times over its life. Again, this varies based on the size
and type of the unit. For example, a smaller building made up of one or two modules may move 12 to 15 times over its life.
Construction site offices are good examples of this. Larger complexes, on the other hand, may only move three to five times
over their life.
16
17
MORE.
REGIONAL
F
DATA
or 2012, MBI was able to further segregate data into regions or “hubs.” The data in parenthesis is the number of
units in which we obtained information, not the total number of units in the region.
Note: 2012 regional data
provided by MBI members and
non-members was limited to
the USA and Canada.
MORE LEVERAGE.
MORE UNITS.
MORE LEASES.
Mobile/modular industry leaders maximize growth opportunities by
leveraging the value of their fleets into greater capital. And no one knows
that better than AccuVal-LiquiTec who has appraised more than 75% of
the mobile/modular fleets in the United States. Increase the number
of units you own by generating more cash from an asset-based loan,
growing your lease streams – and your opportunities.
LEVERAGE YOUR FLEET. Call Bob at 888-220-6052 to discuss valuation
strategies that will help you grow.
Regional data indicates where utilization rates are the strongest and weakest and shows that the industry still has
about one third of its inventory available for lease. In many cases, it is not practical to shift assets from one hub with
higher utilization to another with lower utilization for several reasons:
The industry leader in corporate valuation,
advisory and liquidation services.
ACC U VA L - L I Q U I T E C . N E T
• Aside from the largest fleet owners, many of the companies are smaller and regional in nature and do
not operate outside of their geographic market.
• Regions have different wind, snow and seismic conditions, which may prevent a building from the northeast
region from being used in the southeast where the wind zone requirements are higher, and so forth.
800.852.9252
Changing codes and customer preferences still drive new investment in the industry, with overall capital expenditure
forecast for 2013 expected to increase slightly from 2012 expenditures.
ATLANTA
18
AUSTIN
CHICAGO
DALLAS
DENVER
FORT LAUDERDALE
LOS ANGELES
MILWAUKEE
NEW YORK PROVIDENCE
TORONTO
TWIN CITIES
19
NORTHWEST HUB
NORTHEAST HUB
OR, WA, ID, AK, HI, AB, BC
ME, VT, NH, MA, CT, RI, NY, ON, QC
Data on a total of 10,083 units was obtained in this region,
showing an overall utilization rate of 76.4%.
This region was among the strongest in North America in terms of
lease fleet utilization. Data on a total of 14,087 units was obtained
in this region, showing an overall utilization rate of 76.7%.
By product type, the data shows:
Singlewides (7,299 units) utilization at YE 2012 = 74.0%
Office complexes (2,486 units) utilization at YE 2012 = 84.5%
Classrooms (298 units) utilization at 70%
WESTERN HUB
CA, AZ, NV, UT
Classrooms (6,752 units) utilization at 54%
The third and fourth largest fleet owners (publicly traded
companies whose data is not included in these calculations)
have a significant presence in this region. Those companies
collectively own and lease nearly 78,000 additional classrooms
and offices (not exclusively in this region). Combined utilization
rate at YE 2012 for these two companies was 63.2%
20
NORTH CENTRAL HUB
CENTRAL HUB
CO, KS, NE, SD, ND, WY, MT, SK, MB
OH, KY, IN, MI, IL, WI, MN, IA, MO
Data on a total of 4,514 units was obtained in this region, showing
an overall utilization rate of 70.0%.
MID-ATLANTIC HUB
VA, WV, PA MD, DC, DE, NJ
SOUTH CENTRAL HUB
TX, LA, AR, NM, OK
SOUTHEAST HUB
FL, GA, AL,MS,NC, SC, TN
This region has seen a spike in overall construction activity,
heavily driven by the workforce housing boom around the Eagle
Ford, Texas shale oil market.
This region had the lowest overall utilization rate among the Hubs.
Note: 2012 regional data
provided by MBI members and
non-members was limited to
the USA and Canada.
21
ACQUALINA
Sales Center
SUNNY ISLES BEACH, FL
Company: ModSpace
Affiliate: First String Space
Architectural Excellence
LPLA Partners needed an exact representation of new luxury condominiums they were building on the Florida beach. The model had to match every
detail so that prospective buyers could be sold on the dream of luxury beachfront living. The replica had to be built within an extremely tight timeframe.
ModSpace delivered with an 8,800-square-foot building that perfectly matched the luxury property. The building was made to exact specifications so that
interior finishes could be added quickly without additional modification. Architectural specifications included 10-foot ceilings, with available space for
specialty lighting and linear diffusers (HVAC). Floor-to-ceiling window openings were incorporated to house the specially glazed glass needed to block
outgoing light (a requirement for coastal zones with nesting sea turtles). Interior walls and floors were delivered and ready for design architects and finish
contractors to add high-end finishes, custom cabinets and stone installation.
Technical Innovation & Sustainability
Modular construction allowed developers to build a temporary sales center right on the beach, beyond the Coastal Construction Line (CCL) and up to
the coastal Erosion Control Line (ECL). FEMA requirements for elevations and soil mitigation meant considerable site work would have to be done before
finished modules could be delivered and set on the foundation. Nonetheless, within weeks, the foundation was prepped and ready for delivery. The
modular units were built and assembled to withstand hurricane-force winds, another requirement for building in the region. To meet the oceanfront
window requirements, special site-installed steel header brackets were fabricated and added across matelines and skillfully attached to the longitudinal
ridge beams on site. The resulting modular structure conforms to the state’s strict structural codes for wind, coastal erosion and wildlife preservation.
Cost Effectiveness
New interest from high-net-worth individuals created a sales opportunity in South Florida for new luxury oceanfront condominiums in excess of $4
million. Acqualina developers were staged to be first to market with new oceanfront condos, but a finished model was needed to showcase the condos to
potential buyers during the busy tourist season. Completing the relocatable modular sales center in approximately 90 days let Acqualina developers secure
early sales and lock in bank loans for the proposed high rise.
STATE LABELING PROGRAMS & MBI SEALS
A relocatable building is a partially or completely assembled
building that complies with applicable codes and state
regulations. But often times it’s hard to tell if a building has
been inspected and meets the code requirements when it
arrives at a new location.
CHANGING THE WAY THE WORLD BUILDS
GREENER . FASTER . SMARTER .
TM
Consumer Hotline:
888-811-3288 (M-F 8:00AM-5PM ET)
Placement of this MBI seal indicates this
modular building was manufactured by
and/or sold or leased through an MBI
member company subscribing to a code of
ethics regarding high standards of honesty,
integrity, professional service, and conduct.
Given that the construction occurred offsite, and without
122112
www.modular.org [email protected]
the supervision of the local building code official, several
states have implemented programs to ensure safety and
122112
Member
Hotline:
888-811-3288
code compliance in relocatable buildings. Typically, a manufacturing facility must meet
state guidelines (M-F
for8:00AM-5PM ET)
www.modular.org | [email protected]
quality and safety, the building plans must be approved by a licensed professional, and the building itself must
be inspected by a qualified third party engineer or design professional. After a building has been inspected and
determined to meet all the code requirements, a state label is affixed to demonstrate to local code officials that
the building has in fact been inspected. This state label stays with the building throughout its life and multiple
moves, provided the building is not significantly altered. If so, the owner must reapply to have the building reinspected and have a new label affixed.
|
Top Part: Apply to Building
Bottom Part: Apply to Invoice
Simply relocating the building (unaltered) from one site to another does not trigger the recertification process.
Unlike the “moved structures” section of the building codes, these units fall under the existing building codes
section on “relocated or moved buildings.” The relocated units do need to meet all life safety, seismic, wind and
snow requirements at the new location.
Often times, a fleet owner will have a building labeled in multiple states to expand the opportunity for future
customers. In these cases, the building must be constructed to meet the requirements of the most stringent state.
The appendix on page 26 lists all statewide programs that oversee relocatable buildings.
In addition to a state label, customers should also look for and require an MBI label. This label indicates that the
building was constructed and/or leased by a member of the trade association that subscribes to the industry’s
code of ethics. The MBI label also has a toll free hotline for the owner to call with any issues or concerns about the
building. The MBI label does not ensure compliance to any codes, but does give the owner some peace of mind
about the integrity of the supplier.
22
23
To help determine if a property is considered real (permanent, not intended to be moved), consider the following:
HONORABLE MENTION
Relocatable Office under 5,000 sq. ft.
The question of real vs. personal can be answered by both investigating the original building design and a term
called “inherent permanency.” Inherent permanency is a definition that addresses the question “Is this structure
designed and intended for permanent use?” This issue is relevant, as nearly any structure can be moved. The
question of inherent permanence asks at what point you can consider a structure easily movable and when is it not
easily relocatable or reasonably achievable.
Utilizing the six-way test that was established in the federal court cases of Whiteco and further
used extensively in the Fox Photo case (a modular commercial structure), the courts recommend
that it be viewed under the six-way test as established in the Whiteco case:
1. Is the property capable of being moved and has it in fact been moved?
Anzac Office
Square Footage: 4,268
2. Is the property designed or constructed to remain permanently in place?
3. Are there circumstances that show that the property may or will be moved?
DEPRECIATION & RESIDUAL VALUES
The economic value of a leased mobile office or modular building is determined by comparing the total cost of the asset with
the income producing capacity over its useful life. Cost includes the initial manufactured cost plus all expenditures for items
such as maintenance and taxes incurred during its useful life. Income includes lease revenue during the building’s useful life and
sale value upon disposition. Residual value is understood to be the anticipated “value” of the building at the end of the lease.
4. How substantial a job is removal of the property, and how time consuming?
5. How much damage will the property sustain upon removal?
6. What is the manner of affixation to the property to the land?
Kaiser Loveland Clinic
Interior view above
The mean annual depreciation has ranged between 5 to 6 percent for the last several years.
While there is no specific IRS ruling pertaining to depreciation of modular buildings, the following are
intended to be general guidelines:
FIRST PLACE
Healthcare under 5,000 sq. ft.
Always consult a professional tax advisor
Visit the IRS Web site for additional resources: www.irs.gov/publications/p946/index.html
The determination as to which depreciation recovery period to apply to the building is based upon
whether the property is considered real or personal.
Generally speaking, the buildings (modular units) alone do qualify for a faster depreciation than real property. However, once
affixed to a foundation, the decision as to whether the property is real or personal (permanent or temporary) falls within local
jurisdiction.
24
25
MBI Board of Directors
STATE ADMINISTRATIVE PROGRAMS
HUD= Federal HUD Code manufactured housing MH = Residential modular homes
PMC = Commercial permanent modular construction
RB = Commercial relocatable buildings
States with Programs AgencyApplies to:
AlabamaManufactured Housing CommissionHUD, MH, RB,PMC
Arizona
Dept of Building and Fire Safety/Office of Mfg Housing
HUD, MH, RB,PMC
California
Housing & Community Development/Factory Built Housing
MH,RB,PMC
ColoradoDivision of HousingHUD, MH, RB,PMC
Florida
Dept of Community Affairs/Manufactured (Modular) Bldgs Program MH, RB,PMC
Georgia
Dept of Community Affairs/Industrialized Buildings Program
MH, RB,PMC
Idaho
Division of Building Safety/Modular Buildings
MH, RB,PMC
IllinoisDept of Public HealthHUD, MH, RB, PMC
Indiana
Dept of Homeland Sec ./Industrialized Building Systems
MH, RB, PMC
IowaState Fire MarshalMH,RB,PMC
LouisianaState Fire MarshalRB,PMC
KentuckyDepartment of HousingHUD, MH, RB,PMC
MarylandHousing and Community DevelopmentHUD, MH,RB,PMC
MassachusettsMfg’d Building ProgramMH, RB,PMC
MichiganBureau of Construction CodesHUD, MH, RB,PMC
Minnesota
Dept of Labor and Industry (IBC)
MH, RB,PMC
MissouriPublic Service CommissionHUD, MH, RB,PMC
MontanaDepartment of Labor and IndustryMH, RB,PMC
Nevada
Department of Business and Industry
HUD, MH, RB,PMC
New Mexico
Construction Industry Codes Div
MH, RB,PMC
New HampshireState Fire MarshalHUD, MH, RB,PMC
New Jersey
Bureau of Code Services (IBC)
MH, RB,PMC
New YorkDepartment of StateHUD, MH, RB,PMC
North CarolinaDept of InsuranceHUD, MH, RB,PMC
North DakotaDept of Commerce (IBC)MH, RB,PMC
OhioBuilding CodesMH, RB,PMC
OregonBuilding Codes DivisionHUD, MH, RB,PMC
Pennsylvania
Dept of Community and Economic Development
MH, RB,PMC
Rhode Island
State Building Commissioner (IBC)
MH, RB,PMC
South CarolinaDept of LaborHUD, MH, RB.PMC
Tennessee
Dept of Commerce and Insurance
MH, RB. PMC
TexasIndustrialized HousingRB,PMC
VirginiaHousing and Community DevelopmentMH, RB,PMC
Washington
Department of Labor and Industry
HUD, MH, RB.PMC
Canada - AlbertaMunicipal AffairsRB
26
President
Michael Bollero, Sr.
President
Aries Building Systems, LLC
Vice President
Harry Klukas
Executive VP - International
Black Diamond Group
Vice President Elect
Kathy Wilmot
Vice President
Wilmot Modular Structures, Inc.
Secretary
Kelly Williams
Manager, Business Development
Treasurer
Christopher Peterson
Vice President, Finance & Operations
Satellite Shelters, Inc.
Past President
John Lieffrig
Vice President Sales
ModSpace
Executive Director
Tom Hardiman
Board Members:
Kevin Copenspire
Mobile/Modular Express
Devin Duvak
General Manager
Indicom Buildings, Inc.
Chris Gardner
Executive Vice President
Britco
Nora McGrath
Chief Administrative Officer
M Space Holdings LLC
Michael Rhodes
Owner
Silver Creek Industries
Laurie Robert
VP Sales & Marketing
NRB, Inc.
Mark Taylor
Vice President, Permanent Modular Construction
PCL Constructors Inc
Dave Tompos
Vice President
NTA, Inc.
Joe Vecchiolla
President, United States
Williams Scotsman
Charles Walden
Owner/President
Walden Structures, Inc.
Jody Werner
VP & GM, Southeast
Vanguard Modular Building Systems, LLC
MBI Staff
Executive Director
Tom Hardiman, CAE
Accountant & Office Manager
Annie Diggs
Operations Director
Steven Williams
Creative Director
Joni Lane, LEED Green Associate
Business Development Director
Dave Sikora
Member Services &
Events Coordinator
Catherine Adkins
Communications Director
Tracey Daniels
27
THANK YOU
2013 MBI Sponsors
MBI sponsors are commercial modular construction leaders who align themselves with MBI in a
collaborative effort to promote the industry, educate participants within the industry, and ensure
a positive and ethical business environment throughout the industry. We gratefully acknowledge
our Diamond Preferred, Titanium, Platinum, Gold and Silver sponsors.
Bard Manufacturing
bardhvac.com
Mobile Modular Management Corp.
mobilemodularrents.com
ModSpace
modspace.com
Northgate Industries Ltd.
northgateindustries.com
Mule-Hide Products
mulehide.com
Satellite
satelliteco.com
M Space Holdings
mspaceholdings.com
Williams Scotsman
willscot.com
WWW.MODULAR.ORG
944 Glenwood Station Lane, Suite 204
Charlottesville, Virginia 22901 USA
Toll-free phone: 888-811-3288
Phone: 434-296-3288
Fax: 434-296-3361
[email protected]
28

BUILDS - Modular Building Institute

Transcription

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