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article<br />

Tech giants investing in offsite<br />

Offsite construction offers a wealth of benefits to all who utilise it within their project. It can halve build time, encourage a 95% recycling<br />

rate, provide an 80% reduction in waste, and result in a higher quality of building due to tighter controls imposed on the factory floor.<br />

All of the signs and signals suggest that<br />

this is the direction we are heading in as<br />

an industry. The World is poised on the<br />

brink of a modular revolution, with industry<br />

experts predicting that 30-40% of construction<br />

in Britain alone will be built offsite within the<br />

decade.<br />

It comes as no surprise then to see tech giants<br />

beginning to invest heavily in offsite throughout<br />

the World. It was only a matter of time. Let’s take a<br />

look:<br />

Amazon<br />

Online retailer Amazon (the 18th largest company<br />

by revenue in the World) is one such behemoth to<br />

commit to offsite, recently investing in a homebuilding<br />

start-up company called Plant PreFab,<br />

who deliver prefabricated homes. This is their first<br />

move into prefab construction; aside from being<br />

the biggest online retailer, Amazon is perhaps<br />

better known for smart home technology. Plant<br />

PreFab, based in Rialto, California and is set to<br />

become the latest addition in Amazon's Alexaintegrated<br />

homes. Amazon's Alexa Fund invested<br />

in Plant PreFab for their prefabricated single and<br />

multifamily houses and their plan to use<br />

automation to build homes faster at lower costs.<br />

Paul Bernard, director of the Alexa Fund, said<br />

"Voice has emerged as a delightful technology in<br />

the home, and there are now more than 20,000<br />

Alexa-compatible smart home devices from<br />

3,500 different brands."<br />

Plant Prefab believes factory-built homes can<br />

address new building systems and affordability<br />

through automation. They claim to be the first<br />

home factory in the nation focused on sustainable<br />

construction, materials, processes and operations.<br />

As Paul Bernard stated, "Plant Prefab is a leader<br />

in home design and an emerging, innovative<br />

player in home manufacturing. We’re thrilled to<br />

support them as they make sustainable,<br />

connected homes more accessible to customers<br />

and developers."<br />

Plant Prefab says its approach reduces<br />

construction time by 50% and cost by 10-25% in<br />

major cities.<br />

"We aspire to make the process of building a<br />

home far easier, faster, and less expensive in<br />

major cities," says Steve Glenn, Plant Prefab's<br />

CEO. "And part of this effort involves making sure<br />

our homes meet our clients lifestyle needs, and<br />

having greater and more effective smart home<br />

technology and integration is part of that. Amazon<br />

is certainly a leader in this domain and we hope<br />

and expect to learn much from them."<br />

Amazon already has a deal to pre-install Alexa<br />

with Lennar, the largest homebuilder in the US;<br />

the new addition of Plant PreFab could<br />

dramatically shape the future of Amazon's smart<br />

home integration…<br />

Home 2.0 is on its way!<br />

Google<br />

Silicon Valley heavyweight Alphabet, Google's<br />

parent company, is also investing in offsite, to the<br />

tune of approximately $30 million to provide<br />

temporary, prefab housing for 300 of its<br />

employees.<br />

The Wall Street Journal recently reported that<br />

Alphabet is making a significant investment in<br />

modular housing built and shipped in from<br />

elsewhere by the start-up Factory OS, because<br />

the current local offerings are so overpriced. San<br />

Francisco rents have jumped by almost 50%<br />

since 2010, while home prices have increased<br />

98% since the bottom of the market in 2009.<br />

Alphabet's modular apartments are expected to<br />

be affordable. In a Wall Street Journal article,<br />

Factory OS founder and CEO Rick Holliday said<br />

that "a previous project that Holliday built using<br />

modular technology saved tenants $700 a month<br />

in rent because of reduced construction costs."<br />

Facebook<br />

In a recent blog post, Facebook announced plans<br />

to turn the 56-acre Menlo Science & Technology<br />

Park they bought in 2015 into a company town,<br />

dubbed the Willow Campus. Located across the<br />

street from the company's current campus, it will<br />

include a grocery store, pharmacy and shopping<br />

center. Facebook employees will only have to<br />

cross the street to commute to the tech giant's<br />

Menlo Park headquarters.<br />

The blog post said "Working with the community,<br />

our goal for the Willow Campus is to create an<br />

integrated, mixed-use village that will provide<br />

much needed services, housing and transit<br />

solutions as well as office space."<br />

15% of the 1,500 new housing units the company<br />

plans to build will be affordable, priced below the<br />

market rate.<br />

The concept of a model village, such as Willow<br />

Campus, is nothing new. The 18th and 19th<br />

century saw a paradigm shift in how employers<br />

valued their workers. Realising the productive<br />

benefits from having a happy and healthy<br />

workforce, many companies ceased to merely use<br />

and abuse people at will and began investing<br />

heavily in quality housing for employees, creating<br />

thriving communities throughout Britain.<br />

There are at least 28 model villages in Britain,<br />

built from the late 18th century onwards by<br />

landowners and industrialists for their workforce<br />

to live in.<br />

However, this village won't exclusively house<br />

Facebook employees. Facebook have stated that<br />

they plan to open up the units to the community<br />

at large. This means that Facebook are stepping<br />

into the housebuilding market, delivering homes<br />

for the public in a modular way.<br />

Research suggests that affordable housing is<br />

much needed in the Bay Area, where prices<br />

have reached such insane heights that some<br />

Facebook engineers reportedly asked Mark<br />

Zuckerberg for help paying rent.<br />

Apple<br />

Last year Apple moved into their new campus,<br />

known as Apple Park. The facility incorporated<br />

modular construction techniques and was<br />

supposedly designed with painstaking attention<br />

to detail to maximize opportunities for creativity<br />

and collaboration and to capture founder Steve<br />

Jobs' complex vision for the space.<br />

The $5 billion campus covers 2.8 million square<br />

feet, accommodates 12,000 employees in one<br />

structure and includes a fitness centre, an<br />

energy plant and large apricot orchards.<br />

According to Apple, the reason for housing so<br />

many employees in one facility is so that<br />

workers build relationships with those outside of<br />

their team, share ideas with co-workers with<br />

different specialties and learn about<br />

opportunities to collaborate.<br />

The building is divided into modular sections, or<br />

pods, some of which are intended for working in,<br />

others for social activities. Everyone from the<br />

CEO to summer interns will be placed into these<br />

pods, helping employees build connections and<br />

discover mentorship opportunities.<br />

In summary<br />

The companies mentioned above are advancing<br />

a variety of construction methods to build<br />

ambitious development projects that reimagine<br />

everything from the wood used in homes to the<br />

ways we think about private vs. communal<br />

space.<br />

It goes without saying that offsite has come on<br />

leaps and bounds in the last few years and will<br />

only become more and more popular as large<br />

tech companies such as Facebook and Google<br />

continue to bring it into the public eye. Attitudes<br />

need to change, but the future is looking<br />

modular.<br />

12<br />

Feb 2019 <strong>M11</strong>

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