<a href="https://www.linkedin.com/in/anthonygude/">Anthony Gude</a>&nbsp;is Director of Real Estate Development at&nbsp;<a href="https://www.leapoffaithpartners.com/">Leap of Faith Partners</a>. Leap of Faith was founded in Los Angeles in 2013 and is at the forefront of delivering single family, multifamily and low to mid-rise modular housing in the LA area. They have a focus on providing affordable modular housing and have delivered 200,000 square feet of modular buildings. The team is currently working on a 125-unit multifamily project in Ventura, California with hundreds of units in the pipeline. LA and the State of California experiencing&nbsp;<a href="https://en.wikipedia.org/wiki/California_housing_shortage">a major affordable housing shortage</a>, which is only expected to grow over the coming years, Anthony and his team have many more projects to come.



<a href="http://www.offsight.com/">Offsight</a>&nbsp;sat down with Anthony to get his perspective on LA’s role as an epicenter for building modular affordable housing and also how technology can play a crucial role in facilitating faster adoption of offsite construction methods.&nbsp;



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Q: Los Angeles has been in the news as being one of most unaffordable cities in America, with an acute and rapidly growing housing shortage. However, LA has also been the location for many state-of-the-art multi-family modular projects. What is LA doing right when it comes to accelerating modular adoption and how can other cities improve their approach to modular housing?



A: Many of the entitlement and planning policies that accelerate conventional development do the same for Modular.There is a level of recognition that the case studies reflect that Developers that use modular solutions like Leap of Faith Partners, Sola Impact , and Impact Housing and others continue to outperform conventional projects financially. The continued development and housing friendly acceleration of the entitlement and permitting progress at the local level is necessary to meet demand. At the federal level, Industrialized construction incentives are being considered and it is likely the best fit in moving the needle. All cities have to do is promote development that supports and creates community. Naturally , the performance of the best projects will bring Industrialized construction and modular projects to the top of the list. The late adopters of technology end up where they always do, seeking reform to subsidize substandard performance in the market.



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Q: As a full service modular developer that covers everything from feasibility analysis and entitlement work to interfacing with the modular factory and onsite-installation, where in this value chain do you feel technology could be most useful in making your job easier?



A: For us, creating a massive pipeline revolves around the ability to quickly perform accurate costing analysis and develop a proforma close to the final version as early in the process as possible. Because our construction and acquisition teams work closely but have entirely different workflows, technologies that translate early massing to quantifiable construction elements allow us to have accurate proformas based on more than “historic price per square foot”. More specificity means more predictability for investors &amp; more dealflow we can quickly underwrite for acquisition. Using modular processes compounds this, in that we have our production capacity secured in much the same way we secure deal pipeline and can quickly not just use past data, but have a live connection to a single supply chain partner with business relationships driving economies of scale and cost of the project.



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Q: When it comes to working with factories and other partners on modular and offsite projects, in what ways have you seen technology be a differentiator and perhaps even a competitive advantage? Are there benefits directly to you as a developer and owner when working with factories that leverage project management and collaborative software?



A: Certainly a competitive advantage. The status quo of the industry is that operators and developers allow scope and cost creep because it is “part of the business”. The truth is that it is not, and being able to manage scope and costs accurately through a complex offsite project is one of the advantages of technology like&nbsp;<a href="http://www.offsight.com/">Offsight</a>.



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Additionally, investors can attain more scale and housing output by focusing on transparency and predictability that is only available by consolidating the investor base. Now, if an operator is not, or has not committed to that radical simplification of their processes OR has historic relationships or business structure that prevents them from doing so – this is the limitation that keeps their financial performance from exceeding those that leverage modular, panelization, or more simply put: Best-in-class project management.

A Developer’s Perspective: Technology’s Role in Facilitating Faster Adoption of Offsite Construction

<a target="_blank" href="https://www.linkedin.com/in/jin-ouk-choi-58250b36/" rel="noreferrer noopener">Jin Ouk Choi</a>&nbsp;is an associate professor at the University of Nevada-Las Vegas, and manages the University’s&nbsp;<a target="_blank" href="http://jchoi.faculty.unlv.edu/" rel="noreferrer noopener">Project Management and Construction Engineering Lab (PMCEL)</a>&nbsp;and received the 2023 Modular Building Fellow Award from the&nbsp;<a href="https://www.modular.org/">Modular Building Institute</a>&nbsp;(MBI). The PMCEL lab is at the forefront of training the next generation of construction project managers in applying modularization, standardization and offsite construction methods on future construction projects.



Jin recently published a post-grad textbook,&nbsp;Modularization: The Fine Art of Offsite Preassembly for Capital Projects,&nbsp;that guides readers on taking modular projects from concept, through manufacturing and onsite implementation.



<a href="http://www.offsight.com/">Offsight</a>&nbsp;sat down with Jin to get his perspective on the growth of modular and offsite construction and how he and his team are preparing the next generation of construction leaders for this disruptive change.



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Q: From your extensive experience researching modular and offsite construction and the current industry trends, what do you feel are the primary factors that will drive construction offsite in the future?&nbsp;



A: Among many key benefits and drivers for modularization and offsite construction, such as improved productivity, efficiency, quality, safety, sustainability, cost and schedule performances, and many others, the possibility of overcoming the labor pool constraints will be the number one primary factor that will drive construction offsite in the future. Currently, according to the&nbsp;<a href="https://www.agc.org/news/2019/08/27/eighty-percent-contractors-report-difficulty-finding-qualified-craft-workers-hire">Associated General Contractors of America</a>&nbsp;, 80% of contractors are having difficulty finding skilled workers, which is expected to become harder to find in the future. This leads to cost and schedule increases. Modular and offsite construction is not new, but now it will become inevitable with this trend which is happening in most developed countries. The paradigm is shifting. You either adapt or could die. Change is critical to success.



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Q: How disruptive do you see offsite construction being to the current construction value chain and what advice do you have for general contractors, speciality contractors and owners who want to invest in getting ahead of the competition?



A: Offsite construction is a paradigm shift. Once the industry converts from the conventional stick-build paradigm to modular construction to standardization, offsite construction will significantly disrupt the current value chain. If the general contractors, specialty contractors and owners want to get ahead of the competition, my advice is to study and understand all the differences in planning and execution for offsite construction compared to the traditional stick-built approach before you invest. Many people think that offsite construction is the same as stick-built or easy. However, many modular/offsite projects failed to achieve expected levels of performance or full benefits due to poor planning, management, and/or execution. Study the differences and get help from modular/offsite experts and innovative technologies such as 1) Visualization, information modeling, and simulation, 2) Sensing and data analytics for construction (i.e.,&nbsp;<a href="https://www.offsight.com/">Offsight</a>), or 3) Robotics and automation. I have highlighted these in my recent book,&nbsp;Modularization: The Fine Art of Offsite Preassembly for Capital Projects&nbsp;(Kluck and Choi 2023).&nbsp;[1] I recommend you all to check it out.



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Q: What role do you feel technology can play when it comes to educating and training future project managers in the construction industry on implementing modular, offsite and standardized construction methods in their future projects?



A: That is an interesting question. In general, many technologies, from information to simulation to data analytics, can be very helpful in educating and training future and current project managers on implementing modular construction. Compared to other industries, the adoption of these technologies is very low in the construction industry due to many reasons, such as a lack of understanding of the technology and its value, lack of data, lack of collaboration, and many others. However, we have sufficient evidence from research and other industries that technology can be invaluable tools to current and future project managers of modular projects. My recent study (Kithas and Choi 2022) [2] on a hands-on education module for modular construction is a good example that demonstrates the effectiveness of technology in education and training. I hope to see the modular construction industry, including companies and academics, put more effort into developing more economical but effective technologies, like&nbsp;<a href="http://www.offsight.com/">Offsight</a>, that are easily available but can educate and train not only current and future project managers but also different trades and students.



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[1] Kluck, M., &amp; Choi, J.O. (2023).&nbsp;Modularization: The Fine Art of Offsite Preassembly for Capital Projects. John Wiley &amp; Sons.<a href="https://www.amazon.com/Modularization-Strategic-Guide-Offsite-Preassembly/dp/1119824710/">&nbsp;Available here.</a>



[2] Kithas, K. A., Choi, J. O. (2022). Hands-on Education Module for Modular Construction, 3D Design, and 4D Schedule. International Conference on Construction Engineering and Project Management 484-491. Seoul, Korea: Korea Institute of Construction Engineering and Management.

Expert Insight: Educating the Next Generation of Construction Leaders In Building Offsite

In a&nbsp;<a href="https://finance.yahoo.com/news/dodge-construction-network-identifies-top-130000601.html">recent report</a>&nbsp;highlighting top issues for specialty contractors over the last year, 90% of the companies surveyed reported direct negative impacts from labor shortages and with 33% of their current staff expected to retire over the coming 5 years.



In order to combat these shortages, 43% of large specialty contractors (companies making $200M or more) intend to dramatically increase their investments in Offsite Construction. This trend is expected to propagate across the industry with small and medium sized contractors expected to increase their current levels of Offsite Construction work by 50% over the coming 12 months.&nbsp;



<a href="https://www.mckinsey.com/capabilities/operations/our-insights/bridging-the-labor-mismatch-in-us-construction">Offsite Construction</a>&nbsp;boosts construction productivity by simplifying and standardizing designs and pairing this with the efficiencies of factory production and manufacturing. This offers a long term solution to dealing with labor shortages over the coming decade and will likely represent the future of construction.&nbsp;&nbsp;



In this&nbsp;Expert Insight,&nbsp;<a href="http://www.offsight.com/">Offsight</a>&nbsp;sits down with&nbsp;<a href="https://wwcca.org/">WWCCA</a>&nbsp;(Western Wall &amp; Ceiling Contractors Association) Vice President,&nbsp;<a href="https://www.linkedin.com/in/nickcarrillo/">Nick Carrillo</a>, to discuss how his members are leveraging Offsite Construction in their major projects. We discuss what they see as some of the largest challenges they face and how investing in Offsite Construction today can be a major&nbsp; game changer in overcoming those challenges in the next few years.&nbsp;



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Q: We’ve heard how labor shortages are drastically affecting the construction industry and specifically many of the specialty contractors. In what ways have your members directly been impacted by the shortages? How do they plan to adapt in the next few years?&nbsp;



Our members have experienced challenges due to labor shortages, including delays in project completion, increased project costs, and difficulties in finding skilled workers. To adapt, they explore various strategies such as direct hiring campaigns implemented by the association, utilizing labor partner training programs to upskill their existing workforce, and adopting technology solutions to streamline processes. Additionally, in cooperation with our labor union partners new partnerships with local schools, trade schools and vocational programs are being made, they are focusing on improving recruitment efforts and promoting the construction industry as an attractive career option to attract new talent.



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Q: Today many specialty contractors have already begun ramping up their use of Offsite Construction and Prefabrication across their business. Can you provide some examples or case studies where your members completed major Offsite projects and what were some of the benefits they witnessed?



WWCCA members have been successfully managing offsite construction and prefabrication for decades, long before the term became “popular “in the industry. Several of our members have successfully completed major offsite construction projects, many that remain staples in major city skylines. These projects have allowed for faster construction timelines, improved quality control, reduced material waste, and enhanced worker safety. The controlled environment of offsite facilities and the collaborative nature of offsite construction has facilitated better coordination among project stakeholders, resulting in smoother project execution, increased overall efficiency, and enhanced client satisfaction.



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Q: When it comes to investing in Offsite Construction, what advice do you have to members who are considering it but have yet to make the leap? What learnings could they take from other WWCCA members who’ve already made the move?



There’s not a one-size-fits-all answer to offsite and prefabrication. Contractors who are considering this type of business opportunity are encouraged to communicate with their clients, their GC’s and their industry partners to understand the complexities, opportunities beyond the initial project, and any hurdles that may prove detrimental to their existing scope of work. If any contractor is interested in learning from others, they are encouraged to attend their local association meetings and network with their peers. It’s at those events they can build relationships and find the person they are looking to learn more from.&nbsp;



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Q: In what ways can technology help your members realize the full benefits of offsite construction? What challenges do you believe technology can help solve and accelerate offsite adoption and growth?



Technology can play a significant role in maximizing the benefits of offsite construction. The most immediate and seemingly obvious answer is Building Information Modeling (BIM) software. It enables enhanced design coordination and clash detection, leading to improved accuracy and efficiency during offsite manufacturing. Advanced robotics and automation can streamline production processes and increase productivity. Additionally, cloud-based collaboration platforms and project management tools, like&nbsp;<a href="http://www.offsight.com/">Offsight</a>, facilitate effective communication and information sharing among project teams, regardless of their geographical locations. By addressing labor needs, improving productivity, and fostering collaboration, technology accelerates the adoption and growth of offsite construction.



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Expert Insight: Wall and Ceiling Contractors Prepare for the Future With Investments in Offsite Construction

Modular and offsite construction is seeing a rapid boom for various reasons which include, cost pressure from onsite labor, quicker times for project delivery and greater efficiency through factory production. These benefits are outlined by the innovative modular builder&nbsp;<a href="https://boxyconstruction.com/process-mission/">BOXY</a>, in their&nbsp;Process &amp; Mission Statement. BOXY also notes the added value factory based construction has on the environment, which includes cutting travel, limiting environmental disturbance and cutting material waste by 70%.



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As part of BOXY’s design-manufacturing process they gather customer needs, build thorough digital floor plans and renderings, have these plans approved by local architects to ensure they meet local codes and then proceed with production. BOXY also actively seeks to implement technology throughout their design and manufacturing process.&nbsp;



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In this&nbsp;Expert Insight&nbsp;we sit down with&nbsp;<a href="https://www.linkedin.com/company/boxy-construction/">BOXY</a>&nbsp;CEO&nbsp;<a href="https://www.linkedin.com/in/mateoatwi/">Mateo Atwi</a>&nbsp;to discuss the importance of adopting technology early in the lifecycle of your offsite construction business and why technology can set your factory on the path for production success and scale as your business and projects grow.&nbsp;



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It looks like BOXY is gaining traction in the construction industry as a provider of an innovative design-manufacturing process that allows customers to design new commercial and residential projects for factory production from the start. How do you balance the demands of customers who seek customization or unique aspects in their design while also solving for efficiency and ease of assembly during manufacturing? Are there specific technologies you utilize in this design process that help?



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We have to define a process for designing and manufacturing that we know we can execute on and apply to projects. If you can’t design it, then that’s a failsafe that you can’t build it. We have structured BOXY so that we have the most possible flexibility using fairly conventional constraints to take on projects by hybridizing all projects into wall panels and transportable modules. Depending on the customer’s requirements, more or less redesign may occur from what they originally perceive to fit our process. We feel the hybrid approach allows us to provide solutions for a wider variety of customers than the average modular builder.



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3D CAD software has been integral to our manufacturing. Without it we would have assembly issues and we wouldn’t be able to use the data that comes from developing the plans. We also use scanning technologies while building to be able to record and share the progress of the projects.



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In what ways has adopting technology early in the manufacturing and production process helped your business? Similar to design, can implementing software during production help with maintaining a successful process or enabling important collaboration between project stakeholders?



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Truthfully, the best time to integrate technology is before you start manufacturing. Once you begin manufacturing there is momentum to keep the project and its components the same, and it usually adds another step to use a new system. We integrated structural detailing software like&nbsp;<a href="https://www.youtube.com/watch?v=--EVL7n-a94&amp;t=1s">AGA CAD</a>&nbsp;early in our process to enable us to automate the material portion of our projects. We use inhouse rudimentary software to track bill of materials and inventory. Ideally as we develop, we want software that can float data between the different phases of planning and construction and provide the necessary information to each party (designer, project manager, client, subcontractors) as they come along.



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When is the earliest you would suggest an offsite or modular builder to begin implementing factory technology? Is there a reason they should implement technology before factory launch? In what ways would this help them scale production to keep up with their growth and demand?



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Software like&nbsp;<a href="http://www.offsight.com/">Offsight</a>&nbsp;is easy to implement before you scale and start building a factory, so absolutely modular builders should be testing new technologies before starting an operation. It’s important to create a culture of technology adoption in order to improve production and quality operations over time and productivity at scale. This is how the industry will move forward. Once the factory is up and running, it’s critical to analyze and see what software improves the factory and which technology is hindering growth. If a software is useful, it will propel production scaling and growth.

BOXY: Adopting Technology Early Puts Your Factory On the Path for Production Success

<a href="https://www.linkedin.com/in/ken-lowney-6b9a162/" target="_blank" rel="noreferrer noopener">Ken Lowney</a>&nbsp;is the President and CEO of&nbsp;<a href="https://lowneyarch.com/" target="_blank" rel="noreferrer noopener">Lowney Architecture</a>, a premier design firm that’s completed many modular projects in the Bay Area and elsewhere. In this&nbsp;Expert Insight,&nbsp;<a href="http://www.offsight.com/" target="_blank" rel="noreferrer noopener">Offsight</a>&nbsp;Co-founder&nbsp;<a href="https://www.linkedin.com/in/andrewxue/" target="_blank" rel="noreferrer noopener">Andrew Xue</a>&nbsp;sits down with Ken for a video interview. They discuss how the market for modular and offsite construction is evolving and how more owners and builders are seeking to incorporate prefabricated building components in their commercial and residential projects for cost, productivity and speed advantages.&nbsp;



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They review the opportunity to leverage technology in new and existing building component factories and how technology can play an important role in enabling project collaboration and visibility and minimizing risk for owners who are moving more work offsite or seeking to incorporate more prefabricated components and elements into their projects.&nbsp;



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Can you talk about your journey in the offsite construction industry and how you got into it in the first place?



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In regards to the concept of factory assembled components, whether it be full volumetric or other components, do you see more of the construction being done in the factory to minimize the onsite costs?



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Technology like Offsight can bridge the gap between a purely manual process which is the norm today and full automation which is reliant on software down the road. Software can also add a layer of collaboration between many stakeholders on offsite construction projects. How have you seen collaboration software drive benefits in the factory?



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