Prefab construction is here, and it’s happening. The combination of a severe labor shortage and extreme shortfalls in housing supply is driving a renewed interest in prefabricated construction as a more cost-efficient alternative to traditional building.
Prefab, or offsite, construction is positioned to disrupt the industry, and new research by McKinsey & Company offers compelling evidence. Prefab could claim $130 billion of the market by 2030 in the United States and Europe at moderate penetration, delivering an annual cost savings of $22 billion. This, combined with other strategies, would help fill a $1.6 trillion productivity gap identified in 2017. That’s enough to fund roughly half the world’s infrastructure spending.