Ramtech Articles Tagged: MBI

Tom Hardiman, MBI’s Executive Director recently opened a discussion on the specter of prevailing wages being applied to offsite fabrication.  Needless to say, this posses a serious threat to the commercial modular building industry.   If the states of California, Ohio, New York, and Washington are successful in forcing prevailing wages on the modular industry it would not only be very detrimental to the industry, but also to the industries that the modular industry serves.    Read more…

The Modular Building Institute (MBI) has been the trade association representing the commercial modular building industry since 1983.  Throughout the years, MBI has helped its members in a number of ways but the greatest contribution has been MBI’s involvement in state and federal legislative matters.  As stated by the MBI, “the government affairs efforts give our members the opportunity to help shape the rules that govern their business, and do so in a cost effective and coordinated manner.”  The following information is from the MBI’s June 2012 Government Affairs Committee Report as reported by Tom Hardiman, Executive Director of the MBI.

Department of Veterans Affairs – In 2010, the Modular Building Institute had the opportunity to testify in front of the House Veterans’ Affairs Committee to discuss construction practices within the Department of Veterans’ Affairs. The MBI believed the Department of Veterans’ Affairs could greatly increase efficiency and reduce construction costs by adopting changes to their construction practices, specifically by incorporating a Design-Build process vs. a Design-Bid-Build process.  Due to pressure by MBI and DBIA, the Government Accountability Office announced that they will review the construction policies of the VA.  MBI was also able to get the following language included in the MilCon Report which accompanies the FY 2013 Military Construction and Veterans Affairs Appropriations Act:

“Military Construction Project Delivery. — the Committee is aware that the design-build project delivery method is conducted under one guaranteed contract, offers fast track aspects, cost savings, and decreased litigation claims. The Design-Build method reduces construction costs, speeds up construction time and guarantees quality in all measured categories. Therefore, the Committee encourages the use of this method, when appropriate, in order to provide greater efficiency, lower life cycle costs, and expedite construction, repairs and alterations of Federal buildings.”   Read more…

During the recent MBI Modular Construction Summit in Washington D.C., manufacturers, dealers and service providers for the modular building industry had the pleasure of listening to Anirban Basu of the Sage Policy Group, Inc. Mr. Basu is also the chief economist for the Association of Building Contractors; therefore, he is acutely aware of the effects this recession has had upon the construction industry.

With the 2008 economic meltdown, the global aspect of our economy has become painfully obvious; NYSE down 33.8%, NASDAQ down 39.6%, London down 31.3%, Frankfort down 40.2% and Tokyo down 42.1%. Since that time, some modest growth has happened globally; 2010 recorded 5.0%, 2011 is on track for 4.4% and 2012 is forecast at 4.5%. The United Stated throughout this period has had, and is forecast to hover around 2.8% growth. This is contrasted by “Chindia” (China and India) whose growth during this same period is projected at 10.35%. China’s economy should surpass the U.S. within this decade and be twice that of the U.S. by 2030. The largest single migration on the planet is not Latinos moving to the U.S., it is rural Chinese moving to urban China, creating a “Chicago Sized” city every year in that country. Imagine the demands this must place upon infrastructure and the construction programs required to respond. Read more…