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Market insight
Where the 60% saving in factory building actually comes from
Weather, waste, repeated site visits and stacked margins, line by line.
By Reflecta ResearchAug 25, 20264 min read
Key takeaways
—Site labour and contractor margin are the biggest costs removed.
—Shipping is the one line that goes up.
—Speed is a saving too: months of carrying cost disappear.
The line, not the site
Building indoors on a fixed schedule removes weather delays, repeated mobilisation and most on-site labour.
No stacked margins
A site build pays each subcontractor and a general contractor on top. One factory contract removes those layers.
The trade-off: shipping
Shipping adds $5,000 to $10,000 depending on the home size. It is the one cost a site build does not have, and it is small beside what is saved.
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Frequently asked questions
Is a factory-built home lower quality?
No. Indoor, repeatable construction usually means tighter tolerances and fewer defects than a site build.