
Can Prefabricated And Modular Homes Make Construction More Sustainable?
Pre-fabricated dwelling, East London, UK. (Photo by David Potter/Construction ... More Photography/Avalon/Getty Images)
From the heavy use of raw materials to logistics and transportation, there are numerous challenges facing the construction sector in terms of becoming more sustainable
One possible solution could be more prefabricated and modular homes, which are built offsite, with less material going to waste and faster construction times.
The Canadian prime minister Mark Carney recently announced a new housing plan, which includes $25 billion in debt financing and $1 billion in equity financing to innovative prefabricated-home builders.
According to a briefing note on the plans, modular housing can reduce construction times by up to 50 per cent, costs by up to 20 per cent, and emissions by up to 22 per cent compared to traditional construction methods.
Dr. Renuka Thakore, a lecturer in environment and sustainability at the University of Central Lancashire said modular housing is a 'game-changer for a greener future' in an email.
Dr. Thakore added modular homes minimise waste by reducing errors and excess materials, because they are constructed in controlled factory environment.
She said their adaptable designs meet diverse customer needs, from affordable housing to emergency shelters, thanks to their quick assembly.
'Many modular housing projects use recycled waste materials, cutting landfill waste and conserving resources,' said Dr. Thakore.
'Their compact designs also make them perfect for repurposing in future projects, extending their lifespan.'
'Modular housing is the way forward for developers to align with the circular economy principles: reuse, refurbishment, and recycling. Prioritising these is the key to more sustainable housebuilding,' she added.
The chief executive of the Navana Property Group, Harry Fenner said modular houses are usually built off-site in a controlled environment with sustainability in mind in an email.
Fenner added in some cases, this type of building can reduce material waste by up to 90 per cent when compared to the construction of a traditional property.
He said the excess materials can also be cleared up and taken back to the manufacturer's factory to be broken down and reused rather than being thrown away.
"Because modular houses are prefabricated, it also means there is less waste on site which reduces the disruption to the environment too,' he told me.
"Modules for the house are almost always assembled off-site and transported via road in bulk which also means there are less vehicle trips so less carbon emissions.
"Typically, many companies that build modular houses try and source materials locally so this can also reduce fuel consumption, so suppliers aren't having to drive a long way to the modular housing site,' added Fenner.
And it is not just the construction of new properties where modular techniques can be applied. Modular concepts can also be used to refurbish or redesign the interiors of existing buildings.
Benjamin Urban, the chief executive of interior modular construction business DIRTT, said the construction sector is starting to see a shift in how projects are delivered in an interview.
Urban said this shift is being caused by a number of factors, including the need for faster lead times, a shortage of skilled labour and a growing recognition that a more circular approach is needed, with more materials being reused, instead of going to landfill.
And he emphasised how interior modular construction can help repurpose existing buildings.
'In North America particularly, the decline in the commercial office and real estate market has forced developers and building owners to think differently,' Urban told me.
'It no longer makes financial sense to tear a building down and build a new one. And the more materials we can divert away from landfill and put back into the circular economy, the better it is for the environment and ultimately, the customer.'
Urban added he has seen a growing interest in more circular approaches to construction over the last five years, and modular costs have fallen to a point where it has become less expensive than building something new.

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Learn more at Important disclaimer – forward-looking statements: This media release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements do not constitute forecasts and include all statements that are not historical statements of fact and those regarding our intent, belief, targets or expectations, including, but not limited to: future commercial or financial performance or the anticipated benefits or effects of the spin-off; Amrize's expected areas of focus and strategy to drive growth and profitability and create long-term shareholder value; the impact of planned acquisitions and divestments and any other statements regarding Amrize's future operations, anticipated business levels, planned activities, anticipated growth, market opportunities, strategies and other expectations. 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Words such as "anticipate(s)," "expect(s)," "intend(s)," "believe(s)," "plan(s)," "may," "will," "would," "could," "should," "seek(s)," and similar expressions, or the negative of these terms, are intended to identify such forward-looking statements. These statements are based on management's current expectations and beliefs and are subject to a number of risks and uncertainties that could lead to actual results differing materially from those forecasted or expected. Although we believe that the assumptions underlying the forward-looking statements are reasonable, we can give no assurance that our expectations will be attained, and Amrize assumes no (and disclaims any) obligation to revise or update such forward-looking statements to reflect future events or circumstances. We make no representations or warranties as to the accuracy of any statements or information contained in this media release. Important factors that could cause actual results to differ from those in our forward-looking statements include, without limitation: 1) the effect of political, economic and market conditions and geopolitical events, 2) the logistical and other challenges inherent in our operations, 3) the actions and initiatives of current and potential competitors, 4) the level and volatility of, interest rates and other market indices, 5) the outcome of pending litigation, 6) the impact of current, pending and future legislation and regulation, 7) factors related to the failure of Amrize to achieve some or all of the expected strategic benefits or opportunities expected from the separation, 8) that Amrize may incur material costs and expenses as a result of the separation, 9) that Amrize has no history operating as an independent, publicly traded company, 10) that Amrize's historical and pro forma financial information is not necessarily representative of the results that it would have achieved as a separate, publicly traded company and therefore may not be a reliable indicator of its future results, 11) Amrize's obligation to indemnify Holcim pursuant to the agreements entered into connection with the separation and the risk Holcim may not fulfill any obligations to indemnify Amrize under such agreements, 12) that under applicable tax law, Amrize may be liable for certain tax liabilities of Holcim following the separation if Holcim were to fail to pay such taxes, 13) the fact that Amrize may receive worse commercial terms from third-parties for services it presently receives from Holcim, 14) that after the separation, certain of Amrize's executive officers and directors may have actual or potential conflicts of interest because of their previous positions at Holcim, 15) potential difficulties in maintaining relationships with key personnel and 16) that Amrize will not be able to rely on the earnings, assets or cash flow of Holcim and Holcim will not provide funds to finance Amrize's working capital or other cash requirements. 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This media release does not constitute a prospectus as defined in the Swiss Financial Services Act of 15 June 2018 or a prospectus under the securities laws and regulations of the United States or any other laws. This media release does not constitute a recommendation with respect to the shares of Amrize. Non-GAAP Financial Measures This media release contains certain financial measures of historical performance and financial positions that are not prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP"). We refer to these measures as "non-GAAP" financial measures. Management believes that these non-GAAP financial measures are useful information to help describe the performance of Amrize. These non-GAAP financial measures should not be considered as alternatives to financial measures prepared in accordance with U.S. GAAP. 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Segment Adjusted EBITDA is defined as Net income (loss), excluding unallocated corporate costs, Depreciation, depletion, accretion and amortization, Loss on impairments, Other non-operating income (expense), net, Interest expense, net, Income tax benefit (expense), Income from equity method investments, and certain other items, such as costs related to acquisitions, certain litigation costs, restructuring costs, charges associated with non-core sites and certain warranty charges related to a pre-acquisition manufacturing issue and transaction costs related to the spin-off. 2 Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by revenues. 3 Free Cash Flow is defined net cash provided by (used in) operating activities plus proceeds from property and casualty insurance, proceeds from land expropriation and proceeds from disposals of long-lived assets less purchases of property, plant and equipment. 4 Adjusted EBITDA Cash Conversion Ratio is defined as Free Cash Flow divided by Adjusted EBITDA. The table below reconciles our net income and net income margin, the most directly comparable financial measures calculated in accordance with U.S. GAAP, to Adjusted EBITDA and Adjusted EBITDA Margin, respectively. (1) Other non-operating (income) expense, net primarily consists of costs related to pension and other postretirement benefit plans and gains on proceeds from property and casualty insurance. (2) Other primarily consists of costs related to acquisitions, certain litigation costs, restructuring costs, charges associated with non-core sites, certain warranty charges related to a pre-acquisition manufacturing issue and transaction costs related to the spin-off. Expand The table below reconciles our net cash provided by operating activities, the most directly comparable financial measure calculated in accordance with U.S. GAAP, to Free Cash Flow and Adjusted EBITDA Cash Conversion Ratio. (1) Capital expenditures, net includes purchases of property, plant and equipment, proceeds from property and casualty insurance income, proceeds from land expropriation and proceeds from disposals of long-lived assets. Expand