Offsite construction, while being around for many decades, has begun to see a surge in popularity among construction and demolition companies in Portland. More and more sectors of the construction and demolition industry are using offsite construction to deliver quicker, less expensive results, and to help deal with the labor shortage that pervades the industry.
Offsite construction has become more and more popular. In a 2018 survey of the construction and demolition industry, over 87% of respondents indicated they “had utilized off-site fabricated components to some degree over the past 12 months.” Over 81% “expected to utilize off-site construction more often, or the same amount, in the next 12 months.”
In this article, we will explore three key ways offsite construction will affect the construction and demolition industry in Portland. But first, let’s clarify what exactly offsite construction is.
What is Offsite Construction?
Offsite construction means that “the majority of the steps and stages of a project are completed at a location other than where the actual construction will take place.”
This can include elements of the design, planning, and even extend into “fabrication, manufacturing, production, and assembly of building materials.”
How is Offsite Construction Affecting Portland’s C&D Industry?
Here our Portland industrial demolition pros share the three most common effects of offsite construction.
1. Faster, more affordable housing
The biggest game changer for Portland demolition contractors is that offsite construction can help answer the demand for more housing. Due to continued labor scarcity and rising rents, consumers are demanding more affordable housing. Many Portland demolition contractors are turning to offsite construction to help increase efficiency, sometimes cutting the cost of multifamily housing by over half.
These companies are also reporting that they can finish projects in half the time. Should these claims prove accurate we can expect a shake up the housing industry. The hard costs of a building – such as the cost of labor and materials, – are the single biggest factor when determining the selling price or rent of a new home. Offsite construction could help combat rising rent prices and the crowding out of middle-class homeowners out of cities.
What’s more, offsite construction allows for each project to be tailor-made to the buyer’s requirements, while still remaining affordable. The use of offsite construction reduces the need for multiple contractors, which allows for the entire project to be completed by one company. It also standardizes the building process, shifting construction toward a model more like modern automated factory processes.
2. A rise in single-family prefabricated homes
There is a growing demand for single-family housing across the states, and especially in the Pacific Northwest. As the cost of rent skyrockets in cities, many middle-class families are turning to the suburbs to escape climbing rent and the lack of anything but luxury housing.
This growing demand can be answered with offsite construction. One company, Eureka, can “produce components for a 2,500-square-foot home in four hours and assemble them onsite in just five days” using offsite construction techniques. The potential for this kind of streamlined construction means single-family housing can be completed quickly and in a cost-efficient manner. This allows for the increase in the volume of affordable housing for the middle class.
3. A possible answer to the labor shortage
Demolition and construction companies have been suffering from a labor shortage since the Great Recession.
Diverse construction and demolition projects in the commercial, industrial, healthcare, and education industries could take advantage of the offsite construction model to save on the need for additional skilled labor.
While nothing will replace skilled workers, ultimately offsite construction will help speed up production and offer greater flexibility and customization, as well as offer a potential solution to the shortage of affordable housing.
If you are looking for industrial or commercial demolition services, Elder Demolition is here to help. Plus, you can receive additional financial benefits from our expert asset recovery services in order to offset demo costs. Contact us today for more information.