FOR IMMEDIATE RELEASE
July 31, 2006
Contact: Tom Hardiman
Modular Building Institute
Modular Building Institute and Robert W. Baird & Co. Joint Survey Confirms Double-Digit Growth in Commercial Modular Construction Market
Charlottesville, VA - The Modular Building Institute (MBI) has partnered with Robert W. Baird & Co. (Baird) in 2006 for the purpose of preparing joint industry surveys on the commercial modular construction market. The June 2006 survey results have been released and confirm that companies engaged in the commercial modular construction industry have experienced average revenue growth in the ranges of +15% for the past year, with expectations for that growth rate to continue in the upcoming year.
As the only international trade association for commercial modular construction, MBI is the leader in aggregating data on the market for public release. In past years, MBI has relied on internally generated surveys. In 2006, MBI moved to working with an internationally recognized equity analyst house for gathering and delivering data. MBI chose to work with Baird, an international wealth management firm.
The June survey was the first MBI/Baird joint survey and provides data on both manufacturers and dealers. It included 60 companies, representing and estimated $1billion in annual manufacturing revenue, $250 million in leasing revenue, and $350 million in direct sales revenue. Highlights are: Double-digit leasing revenue growth was reported by dealers during the June quarter, with 40% indicating leasing revenue growth in excess of 15%
43% of dealers are expecting a growth rate in excess of 15% in the upcoming year
Double-digit revenue growth was reported by manufacturers during the June quarter, with 35% indicating manufacturing revenue increases from the same time as last year to be in excess of 15%
32% of manufacturers are expecting a growth rate in excess of 15% in the upcoming year
"This partnership with Baird demonstrates MBI's commitment to be the trusted source of data for the commercial modular construction industry,” said MBI Executive Director, Tom Hardiman. “Through the joint MBI/Baird surveys, we can now validate observations and provide more timely data to the public. The June survey results show that the industry has been growing and that more end users are realizing the benefits of accelerated construction."
Founded in 1983, the Modular Building Institute is an international nonprofit trade association representing commercial modular building manufacturers and distributors with membership in over 850 locations and 15 countries including the United States, Australia, Belgium, Canada, Chile, Denmark, France, Germany, Hungary, Japan, Mexico, the Netherlands, Peru, Poland, and the United Kingdom. Members serve seven primary markets: general office, education, retail, healthcare, government, security, and construction-site. For more information, visit www.modular.org.
Baird, established in 1919, is an employee-owned, international wealth management, capital markets, private equity and asset management firm with offices in the United States, Europe and Asia. Baird's principal operating subsidiaries are Robert W. Baird & Co. in the United States and Robert W. Baird Group Ltd. in Europe. Baird also has an operating subsidiary in Asia supporting Baird's private equity operations.
Robert W. Baird & Co. is a member of the New York Stock Exchange and other principal exchanges and the Securities Investor Protection Corporation (SIPC). Robert W. Baird Ltd. and Baird Capital Partners Europe are authorized and regulated in the United Kingdom by the Financial Services Authority.