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The use of trade or firm names in this publication is for reader information and does not imply endorsement by the United States Department of Agriculture (USDA) of any product or service. The USDA prohibits discrimination in all its programs and activities on the because all or a part of an individual's income is derived from any public assistance program. (Not all prohibited bases apply to all programs.) Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact USDA's TARGET Abstract This report provides an assessment of technology used in manufacturing modular homes in the United States, and that used in the German prefabricated wooden home industry. It is the first step toward identifying the research needs in automation and manufacturing methods that will facilitate mass customization in the home manufacturing industry. Within the United States, a relatively low level of technology was found in domestic modular home manufacturers. Raw material transportation was mostly manual; manually operated saws sized raw materials; cranes were used to move subassemblies, and modules were pushed by hand or with a battery-powered pusher. German prefabricated home manufacturers used closed panels to construct walls, roofs, and floors rather than modular construction. Three levels of automation were identified: manual, semi-automated, and fully automated. Manual production methods were similar to those found in the United States. In semi-automated factories , automated machinery was used, but an operator was required to manually load, unload, and start the machine. The fully automated factories had equipment capable of machining and transferring panel components and placing and fastening components together. Such investment in automation is risky in the cyclic housing industry. The modular factory has elevated homebuilding from a craft to mass production , but flexibility is reduced and significant customiza-tion is difficult. Future research should examine the cost effectiveness of using high levels of automation, software, and equipment in the U.S. homebuilding industry and whether it can profitably provide the manufacturing flexibility for mass customization. Alternatively, the use of lean manufacturing in modular home factories to realize the same benefits needs to be examined.

Technology assessment of automation trends in the modular home industry