Today’s trade-based construction and assembly processes, even when performed off site, present massive execution risks. Financial sinkholes lurk wherever a trade may intersect with another trade.
Productization is a radically different approach that unlocks new levels of value and scalability for developers. At the core of this strategy are integration-ready construction modules, which incorporate multi-trade assemblies, standardized interfaces and generative variants. These modules organize into product lines that align with the business objectives of owners and general contractors (GCs).
FORCES OF CHANGE
Demand continues to grow for cost-efficient buildings, rapid delivery, customization and greater sustainability. Yet an ongoing shortage of skilled workers makes it impossible for GCs to satisfy the skyrocketing demandwith existing processes.
Meanwhile, in response to an unprecedented ecological crisis caused in large part by the traditional development model, regulators are compelling the construction industry to operate more sustainably. Examples includethe Green Building Energy Reach Code in Santa Monica, California and the French Environmental Regulation RE2020 which requires a dynamic lifecycle assessment and bio-sourced materials.
Mass production does not accommodate a localized market, does not offer sufficient variability, and is patently rejected by building owners and occupants who have been groomed to expect hyper-customization in the experience economy. As a result, standardization of the built environment offers limited market appeal.
This desire to deliver an experience is also pushing developers to seek closer collaboration with the designers, manufacturers and fabricators of building products, systems and modules. This allows developers to meet the challenge of hyper-customization while delivering a cohesive brand experience.
These forces are pushing all players in the construction industry ecosystem to rethink how they can best deliver value.
This article is excerpted from THE PRODUCTIZATION EFFECT: How integration-ready modules will transform the roles of general contractors, specialty contractors and the entire construction value chain. This white paper maps the path to productization and defines how general contractors, specialty contractors and the entire construction value chain can leverage virtual twins on an end-to-end collaboration platform, transcend the limitations of classic industrialization and leapfrog to personalized construction.