December 1, 2024
For centuries, construction has been shaped by what fits in a human hand. The humble brick is a powerful metaphor for the industry’s deep reliance on labor-intensive, manual processes. While this worked well enough when progress was measured in the rise of cathedrals over centuries, today, we are a world in desperate need of faster, more efficient, and sustainable solutions.
The construction industry is at a breaking point. It accounts for 13% of global GDP, but its productivity has barely budged in decades. Compare that to manufacturing, where automation and standardization have propelled productivity to nearly double in the same period. In construction, productivity has grown by just 0.4% annually since 2000. This is not just a statistic; it’s a $40 trillion problem.
As the global population grows and urbanization accelerates, construction must deliver more housing, infrastructure, and sustainable solutions than ever before. Yet the sector is shackled by inefficiencies, spiraling costs, and labor shortages. And the clock is ticking – by 2040, the industry needs to grow by 70% to meet global demand. The way we build today simply won’t cut it.
Let’s face it: we cannot solve 21st-century problems with methods from the Middle Ages. Prefabrication – building components off-site and assembling them like LEGO – is not just an innovation; it’s a necessity. It can cut project timelines in half, reduce costs by 20%, and drastically lower waste and emissions. Yet prefabrication remains stuck in the margins, its potential held back by an industry clinging to its bricks.
Why? Because construction has always been local and fragmented. Building codes differ by city, material costs fluctuate wildly, and each building seems to demand bespoke solutions. This resistance to standardization isn’t just inconvenient – it’s catastrophic for scalability.
At MOD, we see this as an opportunity. Construction needs a platform that connects the dots – a system where architects, prefab manufacturers, and developers can collaborate seamlessly. Our vision isn’t to tweak the current system; it’s to reimagine it.
MOD’s open-source platform is designed to unlock the full potential of prefabrication. Imagine uploading a building design and instantly receiving optimized solutions for cost, CO₂ emissions, and delivery timelines. No endless back-and-forth, no guesswork. Just data-driven decisions that empower architects and manufacturers alike.
The heart of this transformation is our domain-specific language (mod-dlm). It standardizes how prefab components are described, making them globally comparable and code-independent. What used to take weeks – manually defining elements for production – now takes minutes. Suppliers no longer need to guard their data like it’s a trade secret; MOD ensures they can share what’s needed without revealing too much.
But this isn’t just about efficiency; it’s about reshaping priorities. Prefabrication doesn’t just save money – it saves time and lives. In an industry responsible for 39% of global CO₂ emissions, it can also save the planet.
The failures of prefabrication’s past, like the U.S. Housing and Urban Development’s Operation Breakthrough or Katerra, show us what not to do. Both tried to control too much – over-investing in vertical integration and ignoring market cyclicality and demand for customization.
The future lies in flexibility, not rigidity. It’s about being capital-light and digitally native. MOD doesn’t build factories or manufacture components. Instead, we orchestrate a global supply chain, leveraging the best solutions wherever they are.
It’s not enough to build faster or cheaper. We need to build smarter.
The construction industry is the foundation upon which every other sector stands. If we can’t meet the demand for housing, hospitals, schools, and renewable energy infrastructure, progress halts. But it’s not enough to deliver more of the same. We must build in ways that are sustainable, scalable, and equitable.
At MOD, we believe this is possible. We believe in a future where building is collaborative, efficient, and environmentally responsible. A future where architects focus on design, manufacturers focus on precision, and the system does the rest.
It’s time to stop settling for bricks and start building a better foundation for humanity. The tools are here, the demand is clear, and the need has never been greater. Let’s rise to the challenge. Let’s move beyond the brick.
McKinsey & Company: The Next Normal in Construction (June 2020)
McKinsey & Company: Delivering on Construction Productivity Is No Longer Optional (August 2024)
