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. While one would anticipate an increase in the use of panels given the tight labour market, that has not been the case. Best Homes reports that even with a tight labour market, Chicago's demand for prefabricated panels has not increased. In summary, the prefabricated panel industry is still in its infancy here in Chicago. It must overcome the hurdles of cost and carpenter acceptance, before it is a viable market.