If a product is customized for a specific project, then it is sold directly to the contractor. Conversely, if a product is not custom, then it is sold through a wholesaler or retailer. These distribution channels represent applicable modes of entry for Canadian manufacturers. The Chicago prefabricated panel market is not a large one for panel manufacturers due to a lack of demand from area builders. Best Homes, Inc., a local manufacturer of prefabricated panels, commented that prefabricated panels are often more expensive than ones that are built on-site by carpenters.
Carpenters have to account for the costs of material and labour.
Panel manufacturers' costs include materials, labour, and overhead. Consequently, prefabricated panels are not usually competitive when compared to those constructed on site. Carpenter acceptance is also a factor in the prefabricated panels market. Panelized construction reduces the amount of work done by a carpenter's crew. He or she makes less money per job since only a small crew is needed to do the assembly, thus carpenters do not embrace the use of panels.