Before we start, we encourage you to listen to our recent podcast episode of CORT Workplace Talks. In this episode, our host Kimberly Douglass converses with Ron Steinbrink, a thought leader in the modular construction industry. They discuss the rapid evolution of the industry, the unique challenges it faces, and the opportunities it presents.
Insights from Industry Leaders
In the episode, Ron shares his experience in Memphis, Tennessee, where an EV manufacturing plant has spurred significant growth in the modular construction industry. He sheds light on various challenges this industry faces, including rising costs, labor issues, and logistical hurdles such as transportation and lead time on modules. Ron also speaks about the role of furniture rental companies like CORT in providing on-demand solutions that can help address these issues.
The U.S. Manufacturing Revival
As we transition from the podcast, it’s important to note the broader U.S. context. The nation is currently witnessing a manufacturing revival, with nearly half a trillion dollars committed to building new factories for electric vehicles, semiconductors, and other products. This manufacturing resurgence is especially prominent in the Sunbelt and Rust Belt regions, where new factories are sparking investment in warehouses, hotels, office buildings, and apartments.
The Challenges of Manufacturing Growth
However, this manufacturing boom comes with its own set of challenges, including high interest rates, production delays, and the need for significant infrastructure improvements. Despite these obstacles, companies like CORT are stepping up to provide valuable solutions.
Phoenix – A Case Study in Modular Construction Growth
Now, let’s focus on Phoenix. As of early 2024, Phoenix is leading the way with 45,384 units under construction and an additional 122,000 units in the planning stages, according to Multifamily Housing News. Here, CORT Workplace is providing essential furniture rental solutions to meet the burgeoning demand.
Meeting the Demand in Western US Markets
While Phoenix currently leads the Western U.S. in multifamily development, it’s followed by other major cities. Denver comes in second with 41,086 units under construction, followed by Salt Lake City with 18,057 units under construction. This surge in the West is attributed to businesses moving into the area, such as the expansion of Taiwan Semiconductor Manufacturing Co. (TSMC) in Phoenix.
CORT’s Furniture Solutions to Challenges in Modular Construction
High interest rates, labor shortages, and transportation logistics are substantial challenges that developers currently face. But CORT’s streamlined processes and logistics support can help mitigate these challenges. Our partnership with modular and construction companies allows us to quickly gather the needs of the end user and provide prompt turnaround times for quotes.
The Value of Sustainability in Furniture Rental
CORT Furniture Rental offers an innovative, sustainable solution with its circular model, extending the lifecycle of furniture, reducing waste, and providing unparalleled flexibility to clients. Our circular approach includes the following steps: Rent, Return, Repeat, Refurbish, and Repurpose, thereby keeping over 95% of our products out of the landfill each year.
Building a Sustainable Future with CORT
As we navigate the challenges and opportunities of the modular construction industry in this era of manufacturing revival, CORT is committed to providing solutions that not only meet the immediate needs of our clients but also contribute to a more sustainable future.
Invitation to Partnership
Are you ready to explore a partnership that can help drive your modular construction project forward while also contributing to a sustainable future? Contact our team at CORT today. Let’s work together to redefine workspaces, overcome challenges, and build a better, more sustainable future.
