The Five Core Concerns of Negotiation
Daniel Shapiro, Ph.D., is a world-renowned expert on negotiation and conflict resolution. He founded and directs the Harvard International Negotiation Program, which has pioneered innovative strategies and teaching methodologies to address the human dimensions of conflict resolution. Dr. Shapiro also is an associate professor in psychology at Harvard Medical School/McLean Hospital and affiliated faculty at Harvard Law School’s Program on Negotiation, where he serves as the associate director of the Harvard Negotiation Project. For three years, he chaired the World Economic Forum’s Global Agenda Council on Conflict Prevention.
He has launched back-channel negotiations to help revitalize formal peace negotiations in a major Middle East conflict, and regularly conducts negotiation trainings for government leaders around the world—including Middle East negotiators, Chinese officials, Serbian members of parliament, and senior U.S. officials. Through nonprofit funding, he developed a conflict management program that now reaches one million youth across more than thirty countries.
He has appeared on dozens of radio and television shows and has contributed to The New York Times, O, The Oprah Magazine, and other popular publications. Dr. Shapiro is the recipient of numerous awards, including the American Psychological Association’s Early Career Award and the Cloke-Millen Peacemaker of the Year Award. The World Economic Forum named him a “Young Global Leader.” In his spare time, he plays blues guitar and enjoys playing baseball with his three sports-loving sons.
Dan Shapiro: Working now across the continents with leadership from government, from business, and people really at all levels of organizations, what I found is a tendency for people in negotiation to focus on the facts and the figures -- the numbers -- when in fact so much of what drives our negotiations is more than just that rational component but that component that’s beyond reason; the emotional component.
You know, think about a conflict in your own life right now. It could be personal; it could be professional, at work with a colleague, your boss, but call to mind a conflict right now. How are you dealing with that emotional dimension, with your frustration, with the resentment that you know that other person is holding about you? And it gets complicated. There are hundreds of different emotions according to many emotion researchers, hundreds of different emotions. How are you supposed to try and figure out which emotions you’re feeling, the other person’s feeling, what the causes of the emotions are. It’s overwhelming. But you can’t ignore these things called emotions. They are with you. They are with that other person you’re having a conflict with. So what are you supposed to do?
And so my colleague, Roger Fisher, and I, what we did was we ultimately tried to boil down this complex sea of emotions into a handful of things that we call Core Concerns -- matters that are important to all of us. And your ability to deal with these core concerns, five of them, will bring you power.
The first of the core concerns is appreciation. Do you feel heard and understood and valued by that other person? This concept of appreciation is incredibly powerful in predicting everything from marital stability over time to organizational success, to team work, effective productive teamwork over time. Appreciation is incredibly powerful. Do you feel appreciated by that other person in the negotiation? And this is the tough part. . . . Do you think they’re feeling appreciated by you?
Second of our core concerns is autonomy. Autonomy is the freedom to make decisions without somebody else imposing a decision on you. It’s the difference between my coming in and telling you what to do versus my saying, “Look, I love your advice. Let me get your consult. Let me get your input; there’s a decision that’s being made, I’d love to get your perspectives on this.” The one situation I’m impinging upon your autonomy and the other I’m trying to respect your autonomy. You know, you walk in with a proposal that rationally meets the other side’s interest better than anything they can dream of. You walk in to that negotiation and you tell that other party, “Here’s the proposal; take it or leave it.” Guess what they’re more likely to do? To leave it. It has nothing to do with the rationality of the negotiation; it has everything to do with the process. with whether that other person’s autonomy feels respected or imposed upon, impinged upon.
Core concern number three is affiliation. What’s the emotional connection like between you and that other person, and that other group? Do you feel close and connected or do you feel distant, alienated, treated like an adversary? And in a negotiation, how do you shift it? How do you shift the energy so it’s not not me versus you, but it’s the two of us sitting side by side? It’s a totally different way of thinking about negotiation, ultimately, generally speaking, much more effective than the adversarial positional approach.
Fourth of these core concerns is status, you know, who’s up, who’s down, who feels respected for their status, who feels disrespected. That other negotiating side walks in and says to you, “Okay, well, as the only female in this room, what’s your perspective?” or “As the only person who’s aged 22, what’s your per--?” You start to feel put down in terms of status. It helps nobody because instead of getting your input, they’re pushing you away. We’re no longer in the negotiation able to benefit from the good thinking that’s in your mind. So the big advice here, respect people’s status.
The fifth of our core concerns is role. Do people have a fulfilling role, a meaningful role in the negotiation? So as you are negotiating with your family member tonight, with that spouse that you’ve been having trouble with; as you’re negotiating tomorrow morning on that project management team with that difficult other colleague, how do you try and craft roles that actually can help you work more effectively? So instead of automatically playing the role of adversaries -- me versus you -- might you invite the other person into a different kind of role. “Oh, let’s sit down for five minutes right now and just try and problem solve these differences together.” You’re joining them, or inviting them to join you in the role of problem solver, or “Look, would you mind just playing devil’s advocate with me for about five minutes?” I’ve now invited you into the role of devil’s advocate. And you have great power to actually structure the roles that you play and the others play in the negotiation to help you reach some sort of mutual gains, where you both are better off than you otherwise could be.
Before your next negotiation, my recommendation to you, walk through these five core concerns. You don’t need to do it more than five, ten minutes, but just think through from your perspective in your upcoming negotiation, how might you have a desire for appreciation? In what ways might you fear that you’re autonomy is going to be impinged upon, that the other side’s going to try to force some decision on you? In what ways might you fear that the affiliation with the other side’s going to be disconnected, you know, they’re going to try and treat you like an adversary? And most important, before your next negotiation, think through which of these five core concerns might I try to better address in the other person?
And one final point; one of the really cool things about these five core concerns is that before your next negotiation you already know five things about that other person. This might be your first interaction with that other person; you’ve never met them before, but you already know five things about that person. That person wants appreciation. They don’t like their autonomy impinged upon. They want to feel a sense of affiliation, of connection. They don’t want to feel put down in terms of status. And they want a role that makes them feel good, useful, that they’re doing something that’s meaningful and not that they’re simply digging ditches just to fill them up again.
So prepare before your next negotiation, walk through these five -- five minutes -- and you will walk in much more prepared, a more powerful negotiator, ultimately.
Directed / Produced by
Jonathan Fowler & Elizabeth Rodd
Dan Shapiro outlines his five core concerns of negotiation.
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A new study suggests that reports of the impending infertility of the human male are greatly exaggerated.
- A new review of a famous study on declining sperm counts finds several flaws.
- The old report makes unfounded assumptions, has faulty data, and tends toward panic.
- The new report does not rule out that sperm counts are going down, only that this could be quite normal.
Several years ago, a meta-analysis of studies on human fertility came out warning us about the declining sperm counts of Western men. It was widely shared, and its findings were featured on the covers of popular magazines. Indeed, its findings were alarming: a nearly 60 percent decline in sperm per milliliter since 1973 with no end in sight. It was only a matter of time, the authors argued, until men were firing blanks, literally.
Well… never mind.
It turns out that the impending demise of humanity was greatly exaggerated. As the predicted infertility wave crashed upon us, there was neither a great rush of men to fertility clinics nor a sudden dearth of new babies. The only discussions about population decline focus on urbanization and the fact that people choose not to have kids rather than not being able to have them.
Now, a new analysis of the 2017 study says that lower sperm counts is nothing to be surprised by. Published in Human Fertility, its authors point to flaws in the original paper's data and interpretation. They suggest a better and smarter reanalysis.
Counting tiny things is difficult
The original 2017 report analyzed 185 studies on 43,000 men and their reproductive health. Its findings were clear: "a significant decline in sperm counts… between 1973 and 2011, driven by a 50-60 percent decline among men unselected by fertility from North America, Europe, Australia and New Zealand."
However, the new analysis points out flaws in the data. As many as a third of the men in the studies were of unknown age, an important factor in reproductive health. In 45 percent of cases, the year of the sample collection was unknown- a big detail to miss in a study measuring change over time. The quality controls and conditions for sample collection and analysis vary widely from study to study, which likely influenced the measured sperm counts in the samples.
Another study from 2013 also points out that the methods for determining sperm count were only standardized in the 1980s, which occurred after some of the data points were collected for the original study. It is entirely possible that the early studies gave inaccurately high sperm counts.
This is not to say that the 2017 paper is entirely useless; it had a much more rigorous methodology than previous studies on the subject, which also claimed to identify a decline in sperm counts. However, the original study had more problems.
Garbage in, garbage out
Predictable as always, the media went crazy. Discussions of the decline of masculinity took off, both in mainstream and less-than-reputable forums; concerns about the imagined feminizing traits of soy products continued to increase; and the authors of the original study were called upon to discuss the findings themselves in a number of articles.
However, as this new review points out, some of the findings of that meta-analysis are debatable at best. For example, the 2017 report suggests that "declining mean [sperm count] implies that an increasing proportion of men have sperm counts below any given threshold for sub-fertility or infertility," despite little empirical evidence that this is the case.
The WHO offers a large range for what it considers to be a healthy sperm count, from 15 to 250 million sperm per milliliter. The benefits to fertility above a count of 40 million are seen as minimal, and the original study found a mean sperm concentration of 47 million sperm per milliliter.
Healthy sperm, healthy man?
The claim that sperm count is evidence of larger health problems is also scrutinized in this new article. While it is true that many major health problems can impact reproductive health, there is little evidence that it is the "canary in the coal mine" for overall well-being. A number of studies suggest that any relation between lifestyle choices and this part of reproductive health is limited at best.
Lastly, ideas that environmental factors could be at play have been debunked since 2017. While the original paper considered the idea that pollutants, especially from plastics, could be at fault, it is now known that this kind of pollution is worse in the parts of the world that the original paper observed higher sperm counts in (i.e., non-Western nations).
There never was a male fertility crisis
The authors of the new review do not deny that some measurements are showing lower sperm counts, but they do question the claim that this is catastrophic or part of a larger pathological issue. They propose a new interpretation of the data. Dubbed the "Sperm Count Biovariability hypothesis," it is summarized as:
"Sperm count varies within a wide range, much of which can be considered non-pathological and species-typical. Above a critical threshold, more is not necessarily an indicator of better health or higher probability of fertility relative to less. Sperm count varies across bodies, ecologies, and time periods. Knowledge about the relationship between individual and population sperm count and life-historical and ecological factors is critical to interpreting trends in average sperm counts and their relationships to human health and fertility."
Still, the authors note that lower sperm counts "could decline due to negative environmental exposures, or that this may carry implications for men's health and fertility."
However, they disagree that the decline in absolute sperm count is necessarily a bad sign for men's health and fertility. We aren't at civilization ending catastrophe just yet.
A year of disruptions to work has contributed to mass burnout.
- Junior members of the workforce, including Generation Z, are facing digital burnout.
- 41 percent of workers globally are thinking about handing in their notice, according to a new Microsoft survey.
- A hybrid blend of in-person and remote work could help maintain a sense of balance – but bosses need to do more.
More than half of 18 to 25 year-olds in the workforce are considering quitting their job. And they're not the only ones.
In a report called The Next Great Disruption Is Hybrid Work – Are We Ready?, Microsoft found that as well as 54% of Generation Z workers, 41% of the entire global workforce could be considering handing in their resignation.
Similarly, a UK and Ireland survey found that 38% of employees were planning to leave their jobs in the next six months to a year, while a US survey reported that 42% of employees would quit if their company didn't offer remote working options long term.
New work trends
Based on surveys with over 30,000 workers in 31 countries, the Microsoft report – which is the latest in the company's annual Work Trend Index series – pulled in data from applications including Teams, Outlook and Office 365, to gauge productivity and activity levels. It highlighted seven major trends, which show the world of work has been profoundly reshaped by the pandemic:
- Flexible work is here to stay
- Leaders are out of touch with employees and need a wake-up call
- High productivity is masking an exhausted workforce
- Gen Z is at risk and will need to be re-energized
- Shrinking networks are endangering innovation
- Authenticity will spur productivity and wellbeing
- Talent is everywhere in a hybrid world
"Over the past year, no area has undergone more rapid transformation than the way we work," Microsoft CEO Satya Nadella says in the report. "Employee expectations are changing, and we will need to define productivity much more broadly – inclusive of collaboration, learning and wellbeing to drive career advancement for every worker, including frontline and knowledge workers, as well as for new graduates and those who are in the workforce today. All this needs to be done with flexibility in, when, where and how people work."
Organizations have become more siloed
While the report highlights the opportunities created by increased flexible and remote working patterns, it warns that some people are experiencing digital exhaustion and that remote working could foster siloed thinking. With the shift to remote working, much of the spontaneous sharing of ideas that can take place within a workplace was lost. In its place are scheduled calls, regular catch-ups and virtual hangouts. The loss of in-person interaction means individual team members are more likely to only interact with their closest coworkers.
"At the onset of the pandemic, our analysis shows interactions with our close networks at work increased while interactions with our distant network diminished," the report says. "This suggests that as we shifted into lockdown, we clung to our immediate teams for support and let our broader network fall to the wayside. Simply put, companies became more siloed than they were pre-pandemic."
Burnout or drop out
One of the other consequences of the shift to remote and the reliance on tech-based communications has been the phenomenon of digital burnout. And for those who have most recently joined the workforce, this has been a significant challenge.
The excitement of joining a new employer, maybe even securing a job for the first time, usually comes with meeting lots of new people, becoming familiar with a new environment and adapting to new situations. But for many, the pandemic turned that into a daily routine of working from home while isolated from co-workers.
"Our findings have shown that for Gen Z and people just starting in their careers, this has been a very disruptive time," says LinkedIn Senior Editor-at-Large, George Anders, quoted in the report. "It's very hard to find their footing since they're not experiencing the in-person onboarding, networking and training that they would have expected in a normal year."
But it is perhaps the data around quitting that is one of the starkest indications that change is now the new normal. Being able to work remotely has opened up new possibilities for many workers, the report found. If you no longer need to be physically present in an office, your employer could, theoretically, be located anywhere. Perhaps that's why the research found that "41% of employees are considering leaving their current employer this year".
In addition to that, 46% of the people surveyed for the Microsoft report said they might relocate their home because of the flexibility of remote working.
A hybrid future
In looking for ways to navigate their way through all this change, employers should hold fast to one word, the report says – hybrid. An inflexible, location-centred approach to work is likely to encourage those 41% of people to leave and find somewhere more to their tastes. Those who are thinking of going to live somewhere else, while maintaining their current job, might also find themselves thinking of quitting if their plans are scuppered.
But remote working is not a panacea for all workforce ills. "We can no longer rely solely on offices to collaborate, connect, and build social capital. But physical space will still be important," the report says. "We're social animals and we want to get together, bounce ideas off one another, and experience the energy of in-person events. Moving forward, office space needs to bridge the physical and digital worlds to meet the unique needs of every team – and even specific roles."
Bosses must meet challenges head on
Although the majority of business leaders have indicated they will incorporate elements of the hybrid working model, the report also found many are out of touch with workforce concerns more widely.
For, while many workers say they are struggling (Gen Z – 60%; new starters – 64%), and 54% of the general workforce feels overworked, business leaders are having a much better experience. Some 61% said they were 'thriving', which is in stark contrast to employees who are further down the chain of command.
Jared Spataro, corporate vice president at Microsoft 365, writes in the report: "Those impromptu encounters at the office help keep leaders honest. With remote work, there are fewer chances to ask employees, 'Hey, how are you?' and then pick up on important cues as they respond. But the data is clear: our people are struggling. And we need to find new ways to help them."
Inventions with revolutionary potential made by a mysterious aerospace engineer for the U.S. Navy come to light.
- U.S. Navy holds patents for enigmatic inventions by aerospace engineer Dr. Salvatore Pais.
- Pais came up with technology that can "engineer" reality, devising an ultrafast craft, a fusion reactor, and more.
- While mostly theoretical at this point, the inventions could transform energy, space, and military sectors.
The U.S. Navy controls patents for some futuristic and outlandish technologies, some of which, dubbed "the UFO patents," came to light recently. Of particular note are inventions by the somewhat mysterious Dr. Salvatore Cezar Pais, whose tech claims to be able to "engineer reality." His slate of highly-ambitious, borderline sci-fi designs meant for use by the U.S. government range from gravitational wave generators and compact fusion reactors to next-gen hybrid aerospace-underwater crafts with revolutionary propulsion systems, and beyond.
Of course, the existence of patents does not mean these technologies have actually been created, but there is evidence that some demonstrations of operability have been successfully carried out. As investigated and reported by The War Zone, a possible reason why some of the patents may have been taken on by the Navy is that the Chinese military may also be developing similar advanced gadgets.
Among Dr. Pais's patents are designs, approved in 2018, for an aerospace-underwater craft of incredible speed and maneuverability. This cone-shaped vehicle can potentially fly just as well anywhere it may be, whether air, water or space, without leaving any heat signatures. It can achieve this by creating a quantum vacuum around itself with a very dense polarized energy field. This vacuum would allow it to repel any molecule the craft comes in contact with, no matter the medium. Manipulating "quantum field fluctuations in the local vacuum energy state," would help reduce the craft's inertia. The polarized vacuum would dramatically decrease any elemental resistance and lead to "extreme speeds," claims the paper.
Not only that, if the vacuum-creating technology can be engineered, we'd also be able to "engineer the fabric of our reality at the most fundamental level," states the patent. This would lead to major advancements in aerospace propulsion and generating power. Not to mention other reality-changing outcomes that come to mind.
Among Pais's other patents are inventions that stem from similar thinking, outlining pieces of technology necessary to make his creations come to fruition. His paper presented in 2019, titled "Room Temperature Superconducting System for Use on a Hybrid Aerospace Undersea Craft," proposes a system that can achieve superconductivity at room temperatures. This would become "a highly disruptive technology, capable of a total paradigm change in Science and Technology," conveys Pais.
High frequency gravitational wave generator.
Credit: Dr. Salvatore Pais
Another invention devised by Pais is an electromagnetic field generator that could generate "an impenetrable defensive shield to sea and land as well as space-based military and civilian assets." This shield could protect from threats like anti-ship ballistic missiles, cruise missiles that evade radar, coronal mass ejections, military satellites, and even asteroids.
Dr. Pais's ideas center around the phenomenon he dubbed "The Pais Effect". He referred to it in his writings as the "controlled motion of electrically charged matter (from solid to plasma) via accelerated spin and/or accelerated vibration under rapid (yet smooth) acceleration-deceleration-acceleration transients." In less jargon-heavy terms, Pais claims to have figured out how to spin electromagnetic fields in order to contain a fusion reaction – an accomplishment that would lead to a tremendous change in power consumption and an abundance of energy.
According to his bio in a recently published paper on a new Plasma Compression Fusion Device, which could transform energy production, Dr. Pais is a mechanical and aerospace engineer working at the Naval Air Warfare Center Aircraft Division (NAWCAD), which is headquartered in Patuxent River, Maryland. Holding a Ph.D. from Case Western Reserve University in Cleveland, Ohio, Pais was a NASA Research Fellow and worked with Northrop Grumman Aerospace Systems. His current Department of Defense work involves his "advanced knowledge of theory, analysis, and modern experimental and computational methods in aerodynamics, along with an understanding of air-vehicle and missile design, especially in the domain of hypersonic power plant and vehicle design." He also has expert knowledge of electrooptics, emerging quantum technologies (laser power generation in particular), high-energy electromagnetic field generation, and the "breakthrough field of room temperature superconductivity, as related to advanced field propulsion."
Suffice it to say, with such a list of research credentials that would make Nikola Tesla proud, Dr. Pais seems well-positioned to carry out groundbreaking work.
A craft using an inertial mass reduction device.
Credit: Salvatore Pais
The patents won't necessarily lead to these technologies ever seeing the light of day. The research has its share of detractors and nonbelievers among other scientists, who think the amount of energy required for the fields described by Pais and his ideas on electromagnetic propulsions are well beyond the scope of current tech and are nearly impossible. Yet investigators at The War Zone found comments from Navy officials that indicate the inventions are being looked at seriously enough, and some tests are taking place.
If you'd like to read through Pais's patents yourself, check them out here.
Laser Augmented Turbojet Propulsion System
Credit: Dr. Salvatore Pais
Buildings don't have to be permanent — modular construction can make them modifiable and relocatable.
- Modular construction involves building the components of a habitable structure in a factory, and then assembling those components on-site.
- The history of modular construction stretches back centuries, and it became briefly popular in the U.S. after World War II, but it's never quite caught on.
- Construction firms like iMod Structures, which constructs buildings that can be modified and relocated, may soon change that.
Modular construction is on the rise. Once a marginal sector focused on building affordable homes, modular construction is now building an increasing share of structures used for commerce, healthcare, and education. By 2028, the modular construction market is projected to be worth $114 billion.
What is modular construction? It's like building with Legos but on an industrial scale: standardized block-shaped modules are constructed in a factory, transported to a building site, and assembled together to form a habitable structure.
What's most striking about modular buildings isn't appearance but the speed of construction. In 2015, for example, a Chinese construction company built a 57-story glass-and-concrete skyscraper made of 2,736 rectangular modules in a record-breaking 19 days. That's three stories per day.
In addition to speed, modular construction promises to be more modifiable, more transportable, and less wasteful than traditional construction methods. The method could transform construction, which, despite being one of the world's biggest sectors, is one of the slowest growing in terms of labor productivity and digitization.
One modular construction firm aiming to bring the sector into the 21st century is iMod Structures, which builds shipping container-sized modules that can be assembled into buildings. The modules can then be disassembled to modify the existing structure or transported to a different site to build a new one.
Freethink recently visited iMod Structures to get an up-close look at its unique spin on modular construction.
Do buildings have to be permanent? | Hard Reset by Freethink www.youtube.com
Techniques like this could help bring construction into the 21st century. But despite its futuristic and transformative appeal, modular construction is far from a new idea. In fact, the history of prefabrication — the broader category of construction to which modular belongs — goes back centuries.
Prefabrication: From 17th-century cottages to diners to skyscrapers
One of the earliest examples of prefabrication came in 1624, when a colonial American fisherman commissioned an English construction company to fabricate components of a building and ship them overseas to the fishing village of Cap Anne.
In the 17th and 18th centuries, English firms also shipped prefabricated structures — storehouses, cottages, and hospitals — to Australia, South Africa, and New Zealand. In the U.S., prefabricated homes became popular during the Gold Rush when California towns had too many people but too few houses.
In the early 20th century, mass-production made modular construction more practical and, sometimes, more popular. From 1908 to 1940, Sears sold about 70,000 kit homes across the country; some of the cheapest models started around $160. (Kit homes were like IKEA products: the manufacturer builds and precuts the parts, and the buyer assembles them.)
Still, prefabricated homes weren't particularly popular in the first half of the 20th century; homebuyers generally viewed the structures — especially the metal and experimental ones — as strange and undesirable.
Pre fabricated house shipped via boxcarThe Aladdin Company via Wikipedia
But appearance wasn't a major concern during World War II. Facing huge demand for cheap and simple housing for soldiers in the early 1940s, the U.S. produced hundreds of thousands of Quonset huts — prefabricated, semi-cylindrical structures made of corrugated galvanized steel — which about six unskilled laborers could construct in a day.
A Quonset hut being put in place at the 598th Engineer Base Depot in Japan, post-World War IIUS Army Corps of Engineers via Wikipedia
After the war, millions of U.S. soldiers returned home, and the nation faced a housing shortage crisis. Hundreds of companies entered the prefabricated housing market, with several receiving support from the federal government. One of the most iconic models was the enameled-steel Lustron house, which cost $7,000 to $10,000, took two weeks to assemble, and promised to "defy weather, wear, and time."
By 1958, roughly 10 percent of all homes in the U.S. were prefabricated. In addition to homes, the prefabrication industry also built thousands of diners throughout the 20th century, especially after World War II when owning a prefabricated diner was a decent small-business opportunity. Popular in New Jersey, the narrow diners could easily be shipped to buyers by rail.
Interior of a 1938 Sterling manufactured diner, with curved ceiling, in Wellsboro, PennsylvaniaI, Ruhrfisch via Wikipedia
Despite the post-war boom, modular construction never really caught on in most parts of the world, though many architects and builders have long been attracted to the method. Some of the reasons include consumer perception that modular homes are unattractive, technological constraints, and the high costs of researching and developing new building techniques.
These challenges can be prohibitive, especially for large-scale projects.
"Building anything over 10 stories in modular is something no one has wanted to do because you have to invest in research and development," Susi Yu, executive vice president of residential development for the Forest City Ratner Corporation, told Fast Company. "There's science behind it that you need to figure out."
But attitudes on modular buildings may be shifting.
"Today, modular construction is experiencing a new wave of attention and investment, and several factors suggest it may have renewed staying power," noted a 2019 report from the consulting firm McKinsey & Company. "The maturing of digital tools has radically changed the modular-construction proposition — for instance, by facilitating the design of modules and optimizing delivery logistics. Consumer perceptions of prefab housing are beginning to change, particularly as new, more varied material choices improve the visual appeal of prefab buildings."
The report goes on: "Perhaps most important, we see a change in mind-set among construction-sector CEOs, as many leaders see technology-based disruptors entering the scene — and realizing it may be time to reposition themselves."
In recent decades, construction firms around the world have built all kinds of modular buildings, including modular skyscrapers in the U.K., U.S., and China; containerized homes in Mexico; and classrooms in rural South Africa.
"In many countries, modular construction is still very much an outlier," McKinsey noted. "But there are strong signs of what could be a genuine broad-scale disruption in the making. It is already drawing in new competitors — and it will most likely create new winners and losers across the entire construction ecosystem."
The benefits of modular construction
Modular construction has the potential to deliver $22 billion in annual savings to U.S. and European markets, mainly because of the inherent benefits of building components in a controlled factory setting. The Modular Building Institute lists a few examples:
- Shorter construction schedule. Because construction of modular buildings can occur simultaneously with the site and foundation work, projects can be completed 30 percent to 50 percent sooner than traditional construction.
- Elimination of weather delays. 60 to 90 percent of the construction is completed inside a factory, which mitigates the risk of weather delays. Buildings are occupied sooner, creating a faster return on investment.
- Improved air quality. Because the modular structure is substantially completed in a factory controlled setting using dry materials, there's virtually no potential for high levels of moisture (which can cause mold growth) to get trapped in the new construction.
- Less material waste. When building in a factory, waste is eliminated by recycling materials, controlling inventory, and protecting building materials.
- Safer construction. The indoor construction environment reduces the risks of accidents and related liabilities for workers.
But perhaps the biggest benefit of modular construction is relocatability and modifiability.
Future-proofing buildings and cities
Buildings are hard to modify and practically impossible to move. That's a problem for many organizations, including the Los Angeles Unified School District. The district currently maintains thousands of decades-old trailers it built to accommodate a fast-growing student population.
Seeking to replace those trailers with structures, the district partnered with iMod Structures to build "future proof" modular classrooms that can be reconfigured and relocated, depending on fluctuating enrollment levels.
"If you have one of our classrooms in a particular location and 5, 10, or 20 years later, you need them across town at another campus within the school district, you simply disassemble, relocate, and reassemble them where they are needed," Craig Severance, Principal with iMod Structures, said in a statement. "And it can be done within a few days, minimizing school [downtime] and disruption of our children's education."
iMod Structures classroomiMod Structures
Founded in 2009 by former real estate investors John Diserens and Craig Severance, iMod Structures takes a hyper-efficient approach to modular construction. Instead of making many types of prefabricated components, the firm makes only one standardized block-shaped frame, each roughly the size of a shipping container. The firm builds the frames in factories and then outfits them with walls, windows, and other custom features the client wants.
Because the frames have the dimensions of a standard shipping container, they can be easily transported to the building site by truck or rail. On site, the frames are connected together or stacked on top of each other. Once the structure is intact, workers finish the job by adding plumbing, electricity, and other final touches.
The process saves a lot of time.
"Typically, it would take nine to 15 months to manufacture a classroom out in the field," said Mike McKibbin, the head of operations for iMod. "We're doing that in twelve days."
Today, iMod Structures is focusing on future-proofing classrooms in California. But it's not hard to imagine how this kind of modular construction could transform not only the ways we build buildings but also organize cities. For example, if a company wants to set up offices in a new part of town, it could build an office park out of iMod Structures frames.
But what if the company needs to expand? It could attach more modules to its existing structure. If it needs to shut down? Instead of demolishing the office park, the structure could be modified and converted into, say, a hospital or apartment building. Alternatively, the modules could be removed from the site, and reused elsewhere, so the city could construct a park.
Under this kind of framework, cities could become far more flexible and dynamic, able to quickly adapt to changing needs. And with no need to demolish buildings, modular construction could prove far more sustainable than any method the industry uses today.
"We don't want our buildings to ever end up in a landfill. Ever," said Reed Walker, head of production and design at iMod Structures. "We want to take that system and use it again and again and again."