Integrating Panels into the Production Homebuilding
Process
(September 2005)
How do builders decide whether to use panelized house systems?
What factors come into play when a builder is contemplating
making a move to panelized construction? And for what reasons
would builders who are inclined to try a new building technology
choose not to use panelized construction? These are some of
the questions asked in this study conducted for the U.S. Department
of Housing and Urban Development’s PATH (Partnership
for Advancing Technology in Housing) program in an effort
to understand how builders decide to use panel systems.
The study found that higher first costs and an inadequate
understanding of panelized housing technology appear to be
the most common barriers cited by builders who have not used
panels. Competition with other builders is not a major factor
in deciding to use panels. Some code officials appeared to
remain behind the curve of understanding how panel systems
work, but most (according to the builders) are accepting of
the technology once they are educated about it (supplied in
some cases by builders using panels). Among builders who have
elected to use panels, cost savings in the long-term, shorter
construction time, and better overall quality are the major
deciding factors. Some builders have carved out niche markets
in building energy-efficient homes; they claimed that the
energy efficiency of structural insulated panel (SIP) construction
helped them to serve this market. Some of the important factors
for the successful use of panels cited by the builders were
trained crews experienced with the technology and good communication
and coordination between the builder and panel supplier.
Ultimately, a bedrock finding of the study is that builders
willing to trust in advanced technology are most-times rewarded
for their efforts in a variety of ways: lower material costs,
lower labor costs, and fewer call-backs.
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