CSA Group report takes aim at barriers to modular housing construction
A new report from the CSA Group suggests that if public policymakers are serious about achieving their goal of building millions of new housing units in Canada, then government will have to take steps to realize the potential of modular construction.
CSA Public Policy Centre‘s new report, Seizing the Modular Construction Opportunity, highlights how consideration needs to be given to modular construction – the practice of fabricating building components, or “modules,” in a factory-controlled environment. These modules can range from individual rooms to entire building sections, which are then transported to construction sites and assembled.
“Modular housing is an efficient and cost-effective way to build the additional infrastructure Canada desperately needs,” says Sunil Johal, Vice President, Public Policy at CSA Group. “Greater use of modular methods can help address rising demand, particularly within the housing sector.”
This, says the group, is especially important given Canada’s housing crisis.
Currently, the country needs 4.3 million more homes for people with low incomes, students, and those who are unsheltered and will require 199,000 new beds in long-term care facilities by 2035. However, an estimated 700,000 workers in the skilled trades are expected to retire by 2028 and construction costs have risen by 51 per cent in recent years.
Policymakers are challenged to build new infrastructure – and quickly – to catch up to rising demand as the population grows and the skilled labour force shrinks. Innovative construction methods need to be explored to address these mounting issues.
“Demand for modular construction is growing significantly, and we need our policies and regulations to keep pace in order to unleash its full potential,” says Tom Hardiman, Executive Director of the Modular Building Institute. “We need enabling building codes, efficient approvals, and governments that know how to procure and finance modular projects to reap maximum benefits.”
Modular construction is also sustainable, an important consideration as Canada continues to work towards its ambitious climate goals. By standardizing components used in the manufacturing process, modular construction has the potential to reduce waste by as much 46 per cent. Due to the controlled production environment, it can also reduce construction emissions by up to 22 per cent.
The benefits of modular housing can only be realized with broader awareness and understanding of modular methods, greater regulatory consistency, and more compatible procurement and financing practices. The CSA Public Policy Centre’s new report outlines five recommendations for government leaders to seize the potential of modular.
These include:
Addressing building code gaps and inconsistencies. CSA Group maintains its own standard for certifying modules constructed off-site, the CSA A277 standard. However, the standard holds varying degrees of enforceability from province to province. While it is recognized in the National Building Code, CSA A277 is classified as an administrative document within the code, preventing it from being officially designated as an “approved methodology.” This, says CSA Group, creates uncertainty at the municipal level where local inspectors may not be aware of how to apply the standard.
Develop guidance and training for industry and regulators. Often, municipalities don’t obtain the information they need to clarify processes and responsibilities around certification, inspections, and approvals of modular projects. Doing so can help move these projects forward safely and quickly.
Improve access to financing for modular construction. Current low-cost loans from government include criteria that actually deter modular construction. The CSA Group says these need to change. Additionally, the federal government could provide and publicize guidance for private lending institutions to create more financing options for modular construction projects in the open market.
It has set aside billions of dollars for affordable housing development through its National Housing Strategy that could be made accessible to modular builders who have advantages in producing buildings with repeatable floor plans at speed, thus helping to achieve national housing targets to build more affordable homes, including much needed rental units.
Make it easier to procure modular projects. Highly prescriptive designs for institutional facilities like long-term care homes or elementary schools have the downside of narrowing the pool of potential proponents. Many modular firms cannot configure their factory systems to match stated requirements. Or if they can, the level of customization required usually erodes any potential savings that could otherwise be generated.
More collaborative procurement methods can help. An integrated procurement approach would engage manufacturers in design and planning earlier in the process, helping to secure more cost-certainty and quality of construction, without compromising on essential requirements.
Additionally, when modular builders have successfully demonstrated their value and quality, they could be added to preferred vendor lists to further encourage consideration of modular proponents for future capital projects.
Build up evidence in support of modular construction. Finally, says the report, if modular construction is to become part of Canada’s housing supply solution, more Canadian evidence is needed to inform policymakers, regulators, and private developers of modulars’ functions, merits, and limitations.
Academic–industry partnerships can help produce more evidence on the current Canadian modular construction landscape, including best practices, labour trends, lessons from completed projects, as well as measures of waste diversion, energy and cost savings, and length of projects.
“Innovative construction methods are needed as our population grows,” said Johal. “Modular can help fill the construction gap by building new housing that is sustainable, affordable and here to last.”