Looking to purchase a modular building? You’re not alone.
Welcome to the era of high demand and low supply. If you’re looking to purchase a modular building soon, it’s important to know the market you’re getting yourself into. Modular buildings have always been a popular option among many, but because of the pandemic, budget cuts, and people having more time to discover the benefits of modular buildings, there has been increased demand.
Modular buildings have the unique situation of two of their most popular materials experiencing a worldwide shortage. With an increase in demand and a low supply of materials, modular building prices are increasing by the day.
So, what can you do about this? Make a quick decision on a modular building quote and ensure you’re getting the best possible price and delivery time. Learn more about why this is the best option at the moment, and why prices are so high.
Covid-19s Impact on Modular Buildings
The impact of Covid-19 has been profound across various supply chains worldwide. Especially modular buildings. Modular Buildings have the unique situation of being made out of the two materials going through a supply shortage: wood and steel.
The cost of lumber is through the roof, no pun intended. For those looking to get lumber-made modular buildings, the current price is 180 percent higher than in Spring of 2020.
Why did the price of lumber increase?
As a result of the pandemic, sawmills were forced to shut down. Limiting the supply of lumber. Although sawmills were shut down, that didn’t affect or stop many Americans from going out to buy lumber to begin home improvement projects. Many bored at home found it was the perfect time to start that home improvement project or office project. Thus, the increased demand and known decrease in supply have driven lumber prices to record-high costs. Experts believe lumber prices will remain elevated through 2021. For those looking for a wooden modular building, quote prices will not be dropping, on the contrary, if you do not buy soon it will likely increase.
Because the cost of lumber is at an all-time high, homeowners are turning to modular buildings to cut costs.
- Lumber has low supply, high demand, and increasing costs.
- Homeowners are turning to inexpensive options like modular buildings because of the high cost
- Modular building prices are being gravely impacted.
Like lumber, the steel industry has also seen an increase in prices. While steel materials remain cheaper than lumber, the price has drastically increased as well.
Why did the price of steel increase?
Due to Covid-19, steel mills were forced to shut down. Leading to a low inventory of steel materials. During this time the automobile and construction industries saw a boom in demand for steel. The demand for steel and the low inventory caused prices to skyrocket.
For steel, the two industries fighting for supply are the automobile and construction industries. Modular buildings fall within the second.
- Steel has low supply, high demand, and increasing costs.
- Steel is still a cheaper option than lumber.
- Modular building prices are on the rise.
Shipping Container Shortage Impact on Modular Quotes
A global pandemic, low inventory of materials, and yes, even a shipping container shortage is impacting the cost of modular buildings.
What Happened to the Shipping Container Industry?
Like many other industries, the shipping container industry was drastically impacted by Covid-19 and previous tariff issues. The shipping container industry is also experiencing low supply and high demand, however, this affects every product that needs to be transported. Because modular buildings need the supplies to be built and are pre-fabricated, they depend on the shipping container industry.
Modular buildings are not the only industry fighting for a container. Every company is trying to get its hands on a shipping container to complete orders promptly. As a result, there is a delay in deliveries for many items. To get past this, it is best to order a modular building as soon as possible to ensure the price and shipping timeline is optimum for you.
- Low inventory, High Demand
- Modular Buildings Depend on Shipping Containers
- Accepting a Modular quote now is optimum
The Modular Purchase Movement
Modular buildings are rapidly becoming a top contender for the construction industry’s fastest-growing markets. Due to numerous inquiries about its unique price point during a hectic housing market, there has been increased demand.
Source: Fortune Business Insights
The Housing Markets Impact on Modular Quotes
The United States is facing a massive housing shortage. Millennials are at their point in life where they are looking for a home, it just happens to fall during a global pandemic that has left resources to construct new homes fast enough impossible. With construction inventory low, and fewer than a three months supply of homes on the market, many are turning to modular homes.
Modular Buildings for Commercial Businesses
What does the state of the housing market have to do with your commercial modular needs? It means an increase in competition. To recap, we have low inventory on materials, higher prices, and now an increase in competition. Locking in a modular quote now for optimum wait time and price is encouraged.
Types of Commercial Modular Buildings:
When looking at commercial modular quotes, be sure to note there are two main types of modular buildings which are relocatable and permanent. As the names imply, relocatable modular buildings can be easily mobile and used temporarily while permanent modular buildings function the same as traditional buildings.
Now that you know the main basic structures, check out some of the various types of ways modular buildings can be utilized for commercial use:
Both relocatable and permanent modular buildings are impacted by the increased demand for suppliers and resources. If you are looking to begin a project for any of the listed commercial uses above, now is the time to request and accept a modular quote.
Commercial Modular Building Companies
You know you need to get a quote now, but from who? Many companies offer modular building solutions, but we went ahead and listed the top three commercial modular building companies below for your convenience. When looking to start a project, make sure to consider the following.
- Satellite Shelters
There are currently not enough skilled workers to build all the projects coming in for modular buildings. The demand for construction is high and the supply of labor is declining. To put this into perspective, the National Low Income Housing Coalition (NLIHC) reported a shortage of seven million affordable rental homes in 2019.
The cost-burdened housing market didn’t happen overnight, it has slowly led many to look into affordable housing options like modular buildings. However, the sudden and unanticipated housing boom due to Covid-19 has led to a labor shortage that many saw coming back in 2019, but it’s now a reality.
How Does A Labor Shortage Affect Modular Buildings?
Modular buildings also referred to as prefabricated construction, are built off-site in a controlled factory. Although the manufacturing of the building is not impacted by the labor shortage, add-on features are. For example, add ons like bathrooms and HVAC units will need to be done by contractors on-site.
Our Conclusion: Now is the Time to Accept a Modular Quote
Material supply is low, costs are increasing, wait times are extending, the housing market is hot, and there is a labor shortage. With this many factors at play, the demand for modular buildings has not slowed down. The benefits of this reliable, quick construction and cost-effective solution have many rightfully turning to this building option.
The demand isn’t slowing down, and you shouldn’t either. Make sure to make a timely decision on your quote before prices continue to increase. In other words, now is the time to lock in your quote.
Get A Quote Today
At 360Connect, it is our goal to make sure you receive an extraordinary buying experience so you can make a smart purchase. Because of this, we encourage you to accept a modular quote now before prices continue to skyrocket. Don't have a quote? 360Connect can provide you with up to five modular building quotes from top dealers. Get a quote today!