What brands our buildings, the architect, the contractor, or the location?
Do modular builders have a brand?
There are quality builders with a public reputation, as there are quality and even famous architects and engineers; and then we have elite zip codes. For the spectacular, a stadium or skyscraper, the designer is normally the noted participant, while in a residential development, it may be the builder that is most noteworthy. Then again, your zip code may brand a building even if it is poorly designed and built!
This is not a debate about who is more important or famous nor where you build, but to illustrate that both designers and constructors can build a brand when they excel at what they do.
How is your modular construction company building a brand?
To my brethren in the modular construction industry, this is the challenge. You can build a brand with design excellence or quality execution, or it can be both. Sometimes design is technical excellence, and quality is seen as value for the price paid. Not only can we brand by producing high end services, but we can also brand ourselves with consistency and value. The point is to create a brand yourself, rather than to be anonymous, or branded by others or the industry. Worst yet, to be seen only as the low-cost alternative.
If you produce automobiles or even smartphones, your style and quality of execution are one. The design team, engineering team and production team all work together to produce the final product. In our built environments, we mostly take a very divided approach to design, construction and management. Developers and design builders do a better job at coalescing the two, while the majority of projects have separate companies for the disciplines.
In past posts I have discussed some of the milestone and more interesting projects done over my career. Most of the projects that I completed were with legacy modular builder Kullman Industries, which blossomed into a turnkey design-build firm and provided all trades and professions. The focus here is on the quality of the professional staff and how they can contribute to brand and capability.
A few years ago, ENR published a study on the Architecture, Engineering and Construction (A/E/C) industry and reported that between 83% and 94% of firms in each category employ less than 20 people. Why does this matter? Well, the staff of architects, engineers and draftsmen at Kullman Industries peaked with over 20 professionals employed in a total company population of nearly 300. Individuals included former associate partners at SOM, staff from Frank Gehry, Cannon and a host of talented professionals who were attracted to a culture of change and innovation. How did that impact brand?
We were design savvy and very capable technically.
Kullman Industries was typically the lead designer on most of its historical food service business and equipment shelters for telecommunications and generators. The majority of large institutional projects from college campuses, US embassies or even prisons, regularly had programming and imaging done by independent design firms, often under contract by the owner. In any collaborative effort, team members know their roles. While our team may have been as large and capable as the owner’s chosen professional team, the specific market experience or history with the owner made them a vital resource. We were not looking to take clients from professional firms, but only to improve our offering as a modular contractor. Both architectural firms and engineering firms found comfort in coordinating with the talented staff that had grown up in their world. Not one professional hire we made came from within the modular industry; instead, we hired directly from the A/E community. The design and engineering team we built spoke the same industry language and were confident that their concepts and directions would be properly executed by the factory production team.
This type of professional staff internal to a modular company was rare and perhaps unique to Kullman Industries at the time. I was recently reminded of this by a longtime colleague and it gave me pause. To paraphrase from the nearby Drucker quote, the in-house engineers for the typical modular company were a cost strategy, but the architects and engineers at Kullman were a marketing and innovation strategy. This made the difference; this became part of the Kullman brand. Who is building a brand today with a strong professional staff in the modular construction industry? I often hear folks in the modular industry bemoan the lack of architects who value a modular approach. Why not develop an internal staff that can either better communicate with the industry professionals or even pitch directly to the owners?
Starting as an architect myself, it was natural that the client development and liaison along with overall project administration could be managed by architects. Most of the industry manufacturers at the time relied on in-house engineers who might have coordinated shop drawings or even developed structural design documentation. Who would hire an architect when the owner would do that? Why should the modular company practice architecture?
I have always looked at the architect in its historical context as the Master Builder. I grew up in a family where someone had the skills of plumbing, electrical, concrete or carpentry. When a project needed to be done, there was always someone who would take the lead while the others participated. I learned a lot about construction, wiring buildings, pouring concrete and framing additions. By the time I was studying design in college, I had already worked with most of the materials and understood the design concepts from real world experience.
When you read the various articles that analyze the extinction of the Architect as Master Builder, you will see the theme that increased specialization and complexity has made construction more of a team dynamic. Yet other services industries such as medicine and law have become equally complex, but their approach is quite different. Whether you are a surgeon, oncologist, or pediatrician, you receive the same basic education on medicine and the human body before you enter a specialty. The same with law and other professions - your specialty comes after you learn the legal system or accounting standards. The concept of Construction Management firms replaced the Architect as Master Builder.
I believe that design build modular construction has the opportunity to bring back the central role of a managing entity because of its unique approach. Many traditional firms, no matter if they are Construction Managers, Architects or Engineers are modular doubters. The modular design builder taking on responsibility and liability is often easy. This is how the talented group of professionals at Kullman became part of the brand.
I became acquainted with Ewelina Woźniak – Szpakiewicz, just before she took the reins of DMDmodular as its CEO. Ewelina has her PhD in Architecture and has a rare passion for the industry. Although based in Krakow Poland, she is very much an international player and her path reminds me of my own and of the model I helped build at Kullman Industries. Essentially, her team is staffed with architects who have taken on both coordination roles and design roles needed to build their volumetric modular projects. Perhaps more importantly, a company’s brand is normally a reflection of its leader’s personal brand. This can also be called a company culture, a set of values and goals that are shared by all team members. I recall her sharing privately with me this fall that her team had created a Halloween video at the company without her participation and it was quite stunning. “I had nothing to do with creating this” she stated on the link to the video. My response was, Ewelina, this video by your team exists because of you. Your team has been inspired to innovate and create on their own and feel they have permission to explore and create without reprisal. This is the culture you have created, please share their effort publicly.
DMDmodular has been creating a brand based on design and quality. It is obvious in their projects, their media and their culture. Clients who work with them are attracted to their style and approach, being modular is just a detail. What any young business must learn, is that the leaders or founder’s passion and vision must be institutionalized to make it scalable. As trivial as a staff holiday video may be, it illustrates that her personal brand is becoming institutionalized in the organization; Bravissimo!
How is your modular company creating a brand? Is professional services part of it? Jeff Bezos, the founder of Amazon, is famously quoted as saying, “Your brand is what people say about you when you’re not in the room.” What do your clients say of your brand?
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Being able to promote and market does not equate to branding. Nice visuals with a collection of clichés from marketing consultants do not constitute a brand. It is the energy you feel when sitting in their office or meeting its people. It shows up as confidence and pride in what they do. Brands, like culture, are at their best when organic and sincere. They normally follow the personal brand of its leaders. Contrived brands, based on marketing research, wears thin. Ayn Rand aptly communicates one's passion for work with "One must love the doing!"
At Kullman, we were able to bring in cutting edge design technologies that many firms could not afford or saw limited value with. The average size of all AIA member firms is 11, according to the 2016 AIA Firm Survey Report and 26% are sole practitioners. Kullman could afford to invest in advanced technology that the average A/E firm could not.
Modular companies are almost expected to seek forms of automation or industrialization of their manufacturing process. It can certainly be a differentiator and can lead to cost and time savings. But automation is simply a cost strategy, and most clients don’t care if robots welded their structure or humans. Besides, fabrication is a back of house function, though it can be celebrated along with the technology. Why not bring design technology to the initial phase of engagement?
The most desirable time to engage with a project is when it is just a twinkle in the owner’s eyes. At Kullman, we were on the forefront of 3D design and modeling with the talent of the staff and the investment in technology. I recall producing small format convenience stores for Hess Oil when they were on the retail side in the early 90’s. Our team created a series of new designs using 3D renderings. We printed out numerous concepts with our new Rastergraphic's electrostatic color plotter, one of the first in the industry. At the time, this piece of technology cost approximately $35,000, $65k in today's dollar. Although it lived in the A/E department and just printed, we considered it part of our marketing strategy. I recall the Hess VP of Engineering turning to his longtime A/E consultant who had joined for the visit asking him “Why can’t you guys do this?”. Our branding had worked; he relayed our team’s impressive approach to design and construction, and this led us to develop Hess stores from Florida to Massachusetts.
We also got the attention of the Disney Company during the planning phase of the Animal Kingdom in Florida. We had already successfully completed several food service related facilities and were proposing to become part of the build team in the new theme park. I recall sitting in the Disney offices with one of my colleagues, an Imagineer asked if we could show a different angle of the building concept, displayed on our laptop screen. Mark, the Kullman architect, typed in a series of commands (Mark was both an Architect and a programmer) and the image rotated on the screen. Now today that may not be impressive other than someone knowing what commands to type, but in 1996 it was magical! We were soon awarded the project.
In my medical design and development company, we were awarded a University Medical project, after sending a printed 3D model to the client's inhouse architect. Imagine, you have a discussion on a new facility, and a few days later a model of the facility shows up in your office. The project was Board approved and awarded to us, before we even personally met the administration, on the power of our graphics, model and reputation. We eventually purchased our own 3D printer and would take it to Healthcare conferences, where our architects would sit with the attendees, then develop a concept floor plan of their desired facility. We asked them to stop back in an hour and would present a 3D concept model to them. Nothing says we can design and build for you at the speed of medical innovation, then presenting folks you just met, with your concept in hand. It would live on the soon to be client's desk and shared with his or her colleagues over the weeks to come.
'Automation is not innovation' in offsite, World of Modular speakers say
I developed an internal design studio around talent and technology. We did 3D parametric design with SolidWorks and sent the files to our CNC equipment on the plant floor. The Sun Sparc Stations, aka the “Pizza Box” and Unix was our platform for hardware and software. Initial rendering programs just added shadows, early pioneers were AccuRender, later Revit until it became part of Autodesk. I recall most renderings had to run 24 hours just to process the image. Pushing the envelope on the front end of Design Build, produced the volume we needed to keep hundreds of thousands of plant square footage busy. It was part of the strategy and became part of our brand.
Today's technology has changed but the approach is the same. We have even explored Augmented Reality programs as another way to illustrate a client's facility and 3D printing have become economical and available. Which one are you using?
I rarely focused on cost as a selling point, it was the unique value we could offer; and it typically could not be found anywhere else. How significant was that value? In 1998 Secretary of State Madeline Albrecht awarded Certificates to colleagues and me for our contributions to reinvent and reengineer the United States Government after completing our third US embassy project.
What do you do better than anyone in the industry? Is it your culture or your own press releases? Does the leadership in your organization support the vision or a marketing slogan?
Nothing much has changed in over half a century since Drucker’s wisdom, except the speed we must move at. The functions of marketing and innovation is what fuels a business, everything else is just cost. Modular companies can design, innovate and take the lead, not just perform as subcontractors offering cost advantages or solutions in a tight labor market to general contractors. Build a new business model. If your goal is to be a high-volume commoditized modular builder, you will see either volumes disrupted by events you don’t control, or someone not as smart as you believe it can be even built for even less. Selling cost and capacity may keep you busy……..for a while.
Create a brand around design and technology excellence and you can differentiate yourself. It’s almost a cliché now, that the next well-funded or promoted modular company will become an industry “disrupter”. Why not disrupt the market by becoming more capable and more important to clients?
Look around, some are already doing it.
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