So Now We Know - Demand IS NOT the Problem!
Well, we now know definitively that demand IS NOT the problem! When I wrote the article “What if Demand Wasn’t the Problem” less than a year ago (see below), I was unsure of the answer to that question. Today, I can tell you the good news is that the demand has exceeded 10%! The bad news is that the supply is still around 3%.
Last week, MBI staff spoke with one large corporation and a multi-family developer about projects they had in the works. These are projects that the owners want to go modular and have been designed for modular. Both are currently looking for multiple manufacturers. Yesterday, MBI staff spent 4 hours talking to Marriott Corporation about their needs. Currently, Marriott has planned for about 8% of their new hotels to be modular. But they say "at least 40% COULD be modular." That translates into about 600 modular hotels.
So, in the last week, these three companies alone could keep 15-20 manufacturers busy for the next 3-5 years. These three conversations translate into over 20,000,000 sf of space!
Demand is NOT the issue. We are spending a considerable amount of time and effort to convince owners and developers that modular is the way to build. Why don't we just figure out how to build for the companies that want modular and are calling us now?
Started on February 28, 2018 by Tom Hardiman