Larry R. Martin’s Post

Hi Gary - hope this adds to the discussion - it is a great question you posed. So, for those new to modular, here is a subset to it - 1) How can work acquisition flows be predicted? (Over 100 recessions in work-type/area projects in Australia since 2000.) 2) Once won, forecasting the time to approve final submittals and date-specific (the week) ready worksites? (The client determines these, and contract language is asymmetrical in favour of them.) It is a very complex undertaking. As one veteran asserts, construction is always "too hot or too cold but never just right". As you know, the contract defines timeliness (and delays) in the delivery process as a one-way street for penalties. At the same time, a modular builder's fixed asset utilisation, whether 70 or 95%, significantly affects their total cost. From the Annual Reports of Fleetwood (2017 - 2023), net profit before tax is in the single digits, so the room for error is unforgiving.

39 states have already set standards for modular building. This means that modular already has a foothold in the industry, and is growing

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