Startup Modular Factories Should Consider Logistics in Operational Decisions

As industrialized construction gains recognition, we are seeing a boom of modular factories hoping to capture a share of the market, which is projected to reach $471 billion by 2030. This rise in popularity is exciting for those of us in the industry. But, in working closely with factories on dozens of modular projects over the years, we at Stream Modular have one very important piece of advice to share with startup modular factories in support of their success: Do not leave logistical planning to the end of your process.

How you design your logistics affects your operations — and your bottom line. When you build your business model with transport in mind from the start, you can find significant savings when your modules start moving out the door. Transportation is, after all, a substantial — often overlooked — cost in modular building manufacturing. Here we break down how early logistics planning can benefit startup modular factories. 

Consider the carriers you need to support your system

Logistical planning should start as early as you begin making decisions about your modular building system and design. The materials you use, the size and shape of your mods, the location of your plant, whether you’re building on- or off-frame — these choices significantly impact how you’re going to be able to transport the components from your production line to the build site.

There is a history of modular factories using mod frame carriers. This model is a holdover inherited from the manufactured (mobile) home industry, which builds trailers on chassis so they can be, well, mobile. Since they were typically designed and rated for one-way trips, they are often constructed with cheap axles, wheels, and tires, making them vulnerable to break downs and blown tires. 

Other alternative carrier options include more abundant trailers such as: RGNs, lowboys, and stepdecks. If your factory has proper loading equipment (cranes or other lifting systems) for loading modules, these trailer types are a good option for transport. They are fairly common in the for-hire transportation industry and they are robust enough to handle over-dimensional modules. 

Perhaps the most ideal carrier for large, volumetric modules is the hydraulic carrier, or air float. This carrier offers the benefit of being able to raise and lower the deck of the trailer which enables it to lift modules off cribbing for loading or lower a module onto cribbing for offloading. 

One of the biggest constraints on factories today is lack of availability of hydraulic carriers. 

Because hydraulic carriers aren’t used (or needed) in other types of transportation, there are just fewer available for hire. Drivers, who must have special training to haul and operate them, are also difficult to find. They’re also more expensive to build or rent than more widely available trailers. For these reasons, it’s very difficult to track hydraulic carriers down when you need them, and it’s going to cost you more to use them even if you can. 

We hear from startup modular factories all the time that their production is slowed or halted because they can’t access the specialized carriers they need to move mods out of the facility. When your system relies on special equipment you can’t source, that’s a major problem. Thus, it’s important to think critically about the kind of system you want to build when making those initial operational decisions.

Startup modular factories with more carrier options can offer cost savings

On the other hand, considering logistics in your operational and design decisions allows you to build in transportation advantages that will generate significant savings when your modular factory is up and running. It can really pay off to consider which systems will allow you to leverage the kinds of carriers that are more abundant. 

Mod size is one of the most influential factors impacting your transportation costs. For example, if you are able to design to a maximum standard box size of 12 feet wide x 10 feet tall x 40 feet long, you expand the carrier types available to you (ex: flatbeds, RGNs, step decks). Many of these are more widely available and cost less than hydraulic carriers. Not to mention, you’ll also have fewer travel limitations and avoid added costs associated with oversized freight, such as route surveys, permits and pilot cars.

Additionally, you can choose to build with materials that are easier to load and transport, cutting out the need for expensive, specialized equipment. You may opt to build modules with steel instead of wood. Steel modules are sturdy enough that you can use corner castings as hook points for a crane to place it on many carrier types — typically standard flatbeds, stepdecks, lowboys and RGNs. On the other hand, self-loading and unloading hydraulic carriers are more helpful for wood modules, which you should avoid lifting by crane to prevent damage. 

For more detailed information, read our post on modular building transportation from the design phase. 

Don’t leave planning logistics to the end

Creating a system that relies on specialty carriers can ultimately have steep, ongoing consequences for startup modular factories. Proactively designing your transportation logistics into your manufacturing infrastructure is critical for success and avoiding unexpected costs or delays down the line. We’d love to show you how your startup modular factory can use logistics to your advantage.

Stream Modular is a transportation logistics company specializing exclusively in modular construction. We help modular manufacturers and builders transport mods, pods and panels so they arrive on time and safely to the build site.