Industry Seals

The modular industry's first and only labeling program dedicated to promoting high standards of honesty, integrity, professional service, and conduct.

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What is the 5-in-5 Label Program?

In early 2015, the MBI Board of Directors embarked on a mission that they felt would both unify and benefit the entire membership of the organization. The goal was to focus resources and efforts on the goal of increasing the market share of the commercial modular building industry from its estimated 2.5% to 5% percent of all new construction starts by the year 2020. Essentially this means the board set a goal of doubling the market share over the next five years.

The first step in this effort was to get a better handle on the current market share. Through a series of interviews, discussions, and surveys sent to seventy-five North American modular manufacturers, MBI was able to get a more accurate reflection of market share.

MBI estimated that the total value of new permanent modular construction (PMC) projects put in place in 2014 in North America at US$3.813 billion. Comparing industry data to data from CMD (formerly Reed Construction Data), MBI determined that the market share for PMC in 2014 in North America was 2.93 percent of the value of new construction projects put in place.

The next step was to identify key markets for PMC going forward and to determine the current market share of each. MBI calculated the market share for PMC projects in key markets as follows:



Overall, the total market share for PMC in 2014 in North America was 2.93 percent of the value of new construction projects put in place.

MBI's focus now shifts to identifying growth barriers and opportunities in these key markets, while factoring in regional differences. The board recognized that there is not going to be a single, one-size-fits-all solution to growing market share and that key markets most certainly differ by geographic regions. There is also a recognition that if this effort is to succeed, it will require greater participation and support from the entire industry.

The next step is to develop specific plans to address and minimize regulatory barriers, maximize exposure, and identify relevant trade shows, speaking opportunities, and professional development needs. These plans need to be targeted and region specific, and supported and driven by the companies in those regions. This may require hiring a professional government affairs representative in one region to address a barrier, or marketing modular construction in a regional publication or website targeted for high growth potential. It could mean the further development of training resources identified by the industry such as the recent “Introduction to Commercial Modular Construction” developed with Clemson University. But it will certainly require better economic and forecasting data.

As the modular industry continues to gain acceptance in North America, we know that there will be many more obstacles and barriers we have to overcome. These barriers may be from code officials, regulatory agencies, lawmakers, or even legal challenges. The modular industry has too much growth opportunity at stake to let these barriers hold us back. We realize these barriers are going to require more resources than the association currently has available. This revenue source will be earmarked and allocated towards addressing building code, regulatory, legislative, and legal barriers in the United States and Canada.

While the program will remain voluntary, the MBI Board is strongly encouraging all of its manufacturer members in the United States and Canada to support it by acquiring one MBI seal for each module (floor, box) manufactured. Additionally, we are encouraging all of our fleet owners to retroactively acquire one seal for each unit in their fleet that does not currently bear the seal. Any member experiencing issues in the US or Canada may request support from MBI’s Government Affairs Committee.

Summary:

Currently the industry is just under 3% of all new commercial building construction starts with a goal of reaching 5% by 2020. MBI will track progress and report regional results in its annual PMC report published mid-year with a goal or reporting 5% market share in the 2020 PMC annual report. Additionally, progress will be reported annually at MBI’s World of Modular Conference. This is an ambitious goal on the part of the association and its leadership, and will require greater input, involvement, and participation from the membership at large to be successful.