Part 5/9:
- Market Vulnerability: The construction industry is predominantly composed of small businesses that can quickly adapt to market fluctuations. In contrast, factories have fixed overhead costs and are more vulnerable during economic downturns, leading to investor hesitance in backing new prefab enterprises.
Solvable Challenges
- Financing: Funding structures for prefab housing projects are often misaligned with how payments are typically disbursed during construction. Developers may need more up-front capital to cover factory costs, while banks are accustomed to funding projects incrementally. Innovative financing options could alleviate this catch-22.