Modular Market Investment Trends

Caution: Meme-free zone.

There’s been a lot of crazy things happening in the investment world.

It may seem like the lunatics have taken over the asylum on Wall Street, with social media pundits driving stock markets and fund managers crazy, forcing “short squeezes” and sending junk stocks “to the moon.”

But that frenzy of activity has also exposed some very powerful interests who have enjoyed an inside track for decades, trading paltry fines for huge profits with impunity. They have shown their willingness to manipulate markets to protect their investments, leading to mistrust and instability.

It’s gambling on a rigged game, and that means it’s a loser for the small investor.

With these markets in turmoil, a lot of people are looking very carefully for stable, reliable opportunities to put their money to work and earn an honest profit.

“We’re from the government, and we’re here to help.”

This may have been a joke in most administrations, but smart investors are paying very close attention to Washington and the new administration.

One way or another, a massive infrastructure bill is on its way to passage in Congress.

Whether it’s “only” $600 billion, the original $2.3 trillion proposal or a compromise at $1.5 trillion, it’s a sure bet that the US infrastructure is going to get a lot of attention.

Century-old lead water pipes. Bridges shut down for critical structural failures. Pipelines and power grids shut down by cybercrime and snowstorms. The potholes you drive over every day.

What do they have in common? Cost-cutting and neglect.

The Federal government, which paid for 38% of all infrastructure work in 1977, has funded as little 25% recently, leaving the bulk of the costs piled onto states and municipalities—which struggle to balance their budgets even in good years.

Due to decades of neglect, the USA has slipped to 13th place out of the top 20 industrialized nations in “Quality of overall infrastructure,” according to the World Economic Forum.

China spends 8% of its GDP on infrastructure. The EU spends 5%.

The United States? We peaked at 3% in 1960, and now spend less than 2.3% in support of more than double the 1960 population. And new technologies—like heavy electric pickup trucks—are stressing the system like never before.

But all that is poised to change.

Washington has committed to making a massive investment in the national infrastructure over the next decade. The current administration is calling it their “new New Deal,” and even at its most conservative, it will be huge.

There will be a huge demand for:

  • Construction trailers
  • Rapid industrial and commercial space buildout
  • New and upgraded facilities for public sector personnel
  • Temporary worker housing
  • New low-income residential construction
  • Support structures for “soft” infrastructure (water, power, communications, and environmental)

That’s an opportunity for modular.

All of these needs are perfect use cases for modular’s factory construction, low cost, standardized engineered materials, and rapid deployment.

    Investors are realizing modular’s benefits:

  • “Green,” low-waste and low-carbon manufacture
  • Plan to completion 25% – 50% faster than site-built
  • Construction less affected by weather or seasons
  • Highly energy-efficient
  • Loans, taxes and assessments equal to site-built, with lower costs
  • CAD design means speed, beauty, and high strength
  • Highly efficient use of skilled and unskilled labor
  • Lower incidence of worksite accidents or injuries

These advantages are ideal for smart investors looking for safe investment opportunities.

The future of modular

The modular construction industry is set to reach over $150 billion by 2023.

Some of the big names taking stakes in modular include Amazon, Apple, and Facebook.

You can directly invest in real estate and related funds that are focused on modular.

One person who thinks the time is right is Warren Buffet, who’s partnering with Missouri-based construction-technology company MiTek Inc. to bring his high standards to the modular industry.

Or you can stake out a position in related industries, including construction materials, heavy equipment, and labor.

Take your time. Look for opportunities in fields related to your own, where you might have some insights. Talk to your financial advisor. But above all, remember:

Fads and hype are alluring, but patience gets rewarded. And there isn’t a more satisfying feeling than looking at a construction site and thinking, “I own a piece of that.”

Bottom Line:
In an uncertain investment environment, modular shines.

Invest in yourself! Contact us for more insights on how we can help you meet your goals.