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Brief of diving:
- Modular companies with higher returns are usually generated around a strong system and exercise Control over value chainAccording to a modular construction report of the McKinsey consulting firm.
- The profitability often rises when companies simplify, such as the honor of a material or adhere to less complex projects. This allows factories to work at more constant levels, according to the report.
- The findings disembark as the modular industry is still a Small slice of the General Construction MarketSuggesting that the next phase will test if companies can climb without repeating past failures.
Divide vision:
Successful modular companies invest significantly in their modular construction systemsAnd continue to pour money to improve the lessons learned from completed projects, according to the MCKINSE report.
The study, based on 700 companies from 50 countries, shows that margins are not related to whether a company produces 2D or 3D volumetric modules. What makes the difference is whether the whole process of modularization is linked to a closed loop.
This link allows you to repeat and perfect production. In other words, companies that manage design and manufacture, or align the members closely between these stages, capture the real Benefits of modular.
For example, companies that were reduced to primary material, such as steel or wood, captured the most expensive advantages. On the other hand, those who pursued various types of products or materials diluted their scale and the Sierra of Weaknesses, according to the report.
The analysis also highlights the Overexpansion dangers. Several companies stood out in the reported report in fully automated factories before ensuring demand to fill in the lines. This led to low capacity and, in short, fragile equilibrium sheets. In the meantime, the operators who first demonstrated their approach to a type of asset or geography, then expanded outward, recorded more success, according to the report.
