Modular Building Institute
Modular Building Institute

Industry Seals

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


What is the 5-in-5 Labeling 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.

Beginning with 2014 year end data, MBI has determined that the value of new commercial construction put in place has increased from 2.38% in 2014 to 2.43% in 2015 to 3.18% in 2016.

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:

Educational 3.5%
Office/Adminstrative 4.86%
Healthcare 1.28%
Retail (including QSR, shopping, c-stores) 3.53%
Commercial Housing (including workforce, multifamily, dorms) 3.02%
Institutional & Assembly (including police & fire stations, prisons, & religious facilities) 1.66%

Overall, the total market share for PMC in 2016 in North America was 3.18 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.

Funds generated by the seals program will be allocated towards removing barriers to our growth. Active and engaged committees will also be key to this effort (all committees are open for any member to participate).

Summary. Currently the industry is just over 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.

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