Industrialized Construction: Trend To Take Note Of


November 16, 2021 | Construction, All

Companies that are not using industrialized construction (IC) workflows are relying on processes that worked twenty or thirty years ago, when labor was more plentiful, and schedules were not as tight. The days of “getting by” and kicking the innovation can down the road are dwindling.

During an episode of Bridging the Gap Podcast, Jim Tavernelli, President and Chief Operating Officer of KLH Engineers, gave an estimate that 20% of companies in the construction industry are using IC. According to, modular and prefabricated processes accounted for about $237-billion in construction activity in 2019 alone. Although, IC has not become mainstream yet for single-family construction, if your company is not part of that movement, you can be assured that some of your competitors are.

If you need a partner to help you navigate the transition to industrialized construction, contact Applied Software today. The experts of Applied will help you investigate the solutions that are right for your company.

There are trends that business owners should take note of, and more widespread use of IC is one of them. Business owners and managers need to be mindful of leading their company into the future and having it remain relevant.

A key component of IC is standardization. When your designs and processes are repeatable, it makes them scalable. This powerful reality revolutionized the automobile manufacturing process. As compared to what sometimes happens on a construction project, manufacturers don’t start a car on the assembly line without knowing how the end product is going to turn out; they don’t redesign a vehicle in the middle of the build.

The industrialized approach shifts construction activity away from the jobsite and into a manufacturing facility – a factory. When components of the project are built, they are transported to the jobsite for installation. The time allocated to design can be shortened, since designs can be used for multiple projects.

Colorado Builder Magazine

Of course, there is an educational component in industrialized construction. Changing an internal process requires consistency and repetition. You can also benefit from having outside partnerships that can empower you to transition and productize. The Housing Innovation Alliance, for instance, is working with professional builders on an Industrialized Construction Road Map, which is expected to be published in early 2022. The Road Map will outline a successful transition to IC that includes a builder’s overall business.

Transitioning to IC can reduce job waste, improve estimating, create more predictable work schedules, benefit from having more inspections performed in-factory, and save money on materials. In addition, certain crews can work inside the factory instead of outside in inclement weather, reducing weather-related work interruptions and improving safety.

The transition to IC may seem a long way off for some companies. It may seem out of reach for others. However, using IC and so many other tech advancements is no longer a bandwagon to jump on. It is now a race.

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