In 1926, Walter Gropius, one of the pioneers of modernist architecture, predicted a “fundamental shift of the entire construction business toward industrialization.” He went on to insist that “housing will be created no longer at the construction site, but instead at specialized factories with all the ready-to-assemble components,” assuring ample capacity and affordability.
Why Modular Building Hasn’t Revolutionized Construction
Off-site manufacturing consistently fails to live up to its promise. Can firms figure out how to scale it?
December 21, 2023
Summary.
The allure of building indoors in a controlled environment instead of in the mud, muck, and maelstrom of a conventional site has made prefabrication a strong candidate for the future of construction for architects, engineers, and construction futurists. But time and again, the revolutionary potential of the approach has failed to materialize. The barriers to industrial building — the decentralized nature of the industry and the limited number of employers in a position to make long-term investments, the complications of transportation, and the uncertainty about demand for the product — ensure that modular building will remain a stable but relatively small percentage of total construction spending.
New!
HBR Learning
Innovation and Creativity Course
Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Innovation and Creativity. Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.
Unlock your team's curiosity and willingness to take smart risks.
Learn More & See All Courses
New!
HBR Learning
Innovation and Creativity Course
Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Innovation and Creativity. Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.
Unlock your team's curiosity and willingness to take smart risks.