3 ms·
As an avid reader, I anticipate the feedback as "unlikely to scale, since the centralized productivity gains don't outweigh the diminished flexibility and subst
by manholio 4y ago
As an avid reader, I anticipate the feedback as "unlikely to scale, since the centralized productivity gains don't outweigh the diminished flexibility and substantial transport costs".
This is a recurring theme with prefab system he analyzes, they scrape by employing labour arbitrage at a cheap production site, but do not unleash the productivity gains we associate with industrial production.
This becomes obvious when you look at the distribution of construction costs for a finished building:
https://constructionphysics.substack.com/p/construction-cost-breakdown-and-partial https://constructionphysics.substack.com/p/construction-cost...
The most a prefab can hope to achieve is attack maybe 30- 40% of the total costs in that pie chart. You cannot prefab electrics and plumbing, foundation, landscaping, permitting etc. So even if they crush it and get 100% improvement on their products compared to on site build, that's still a 20% at best overall cost improvement.
Bit with that comes the risk of a new and unproven system, costly coordination issues that are easy to rectify in the traditional method -
but if the wrong prefabs are shipped across the country you are dead for a few weeks, since the next stage cannot start.