Skip to content
‹ Back to IndustriesEngineering & Construction

DOE's Advanced Building Construction Initiative targets construction's productivity gap

The Department of Energy's Advanced Building Construction (ABC) Initiative aims to address the construction industry's productivity gap by promoting off-site manufacturing and digitization. The goal is to make buildings faster and cheaper to build while improving energy efficiency, at a time when more than half of the more than 125 million existing U.S. buildings predate modern energy codes.

This story was produced through MarketScale. See how Engineering & Construction teams put it to work with Partner & Channel Enablement.

By MarketScale Newsroom · · U.s. Department of EnergyAdvanced Building ConstructionBuilding Technologies OfficeOff-site Manufacturing
Share
Listen to the audio brief

Key facts, context, and what it means.

AUDIO
0:00—
DOE's Advanced Building Construction Initiative targets construction's productivity gap

Key takeaways

01

The DOE's ABC Initiative targets the productivity gap in construction by promoting off-site manufacturing.

02

Digitization is a key focus of the ABC Initiative to reduce costs and accelerate retrofits.

Free workspace

Turn your Engineering & Construction expertise into content.

Record interviews, organize footage, and write with AI on a free trial of the MarketScale platform for qualifying companies. No demo required, no credit card.

Try it Free

U.S. construction sector productivity has declined since 1968, even as manufacturing, communications, and virtually every other major industry has moved in the opposite direction. That gap is the central problem the Department of Energy's Advanced Building Construction Initiative is designed to close.

The ABC Initiative, run by DOE's Building Technologies Office, funds research and coordinates industry stakeholders around a specific proposition: that off-site manufacturing, robotics, and digitization of the construction process can deliver buildings that are faster to build, cheaper to own, and far more energy-efficient to operate. For facility directors and capital project teams, that framing matters because it ties construction method directly to long-term operating cost.

A productivity gap with real cost consequences

A 2017 McKinsey Global Institute report identified three root causes of low construction productivity: underinvestment in innovation, a fragmented industry structure, and a persistent shortage of skilled labor. The construction sector remains one of the least digitized in the U.S. economy, and those conditions compound over time into higher bids, longer schedules, and more expensive real estate for the businesses that occupy those buildings.

The cost pressure this creates is not abstract. Higher upfront construction costs lead many building owners and investors to defer or eliminate energy-efficiency upgrades, even when those upgrades would reduce operating and maintenance costs over the building's life. The DOE frames this as a market failure that advanced construction methods can help correct.

125 million buildings, and most predate modern energy codes

The U.S. has more than 125 million existing buildings, according to the Energy Information Administration. More than half were built before 1980, before modern building codes established meaningful energy-performance requirements. Very few have received deep retrofits since.

Annual deep-retrofit rates in leading U.S. jurisdictions
U.S. Department of Energy / Regulatory Assistance Project / Rocky Mountain Institute · © MarketScaleDownload chart

At 1.75% for homes and 2.2% for commercial real estate annually, even the best-performing jurisdictions are barely moving the needle on the existing building stock. Those figures come from research cited directly by the DOE in its ABC program documentation. At those rates, the vast majority of older, energy-inefficient buildings will remain untouched for decades without a step-change in how retrofits are scoped, priced, and delivered.

Off-site manufacturing as the core delivery mechanism

The ABC Initiative's primary technical bet is on off-site, or prefabricated, construction. Building components are fabricated in a controlled factory environment and then shipped for rapid on-site installation. The National Institute of Building Sciences' Off-Site Construction Council points to measurable benefits across scheduling, pricing, quality control, and job-site safety compared with traditional on-site methods.

Venture capital and major technology companies have been investing in off-site construction startups at an accelerating rate, according to the DOE, drawn by the opportunity to apply manufacturing discipline to an industry that has largely resisted it. The ABC Initiative is designed to ensure that this private-sector momentum incorporates deep energy-efficiency standards rather than optimizing purely for speed or cost.

Beyond physical fabrication, the initiative also funds work on building digitization, including design software and construction process tools, that allows teams to model, sequence, and coordinate complex projects before a single component is shipped. That capability matters to large-scale operators managing multi-site retrofits or new-campus construction programs.

Workforce and business model gaps are also in scope

The ABC Initiative is not purely a technology program. DOE's Building Technologies Office is also coordinating on workforce training, new business models for construction delivery, and strategies to grow market demand for high-performance buildings. That scope reflects the recognition that even the best prefabricated building technology stalls if contractors lack installation expertise or if procurement structures don't reward performance outcomes.

For procurement and facilities teams evaluating new construction or major retrofit programs, those parallel workstreams are worth tracking. As the pool of certified installers grows and as performance-based contracts become more common in the construction sector, the economics of specifying higher-efficiency systems will shift. The DOE's program is one of the clearest signals of where federal policy and industry investment are aligned on that trajectory.

What this means for your team

  • Evaluate whether current capital project RFPs specify or incentivize off-site fabrication methods, which can reduce schedule risk and enable tighter energy-performance specifications.
  • Audit your existing building portfolio against the 1980 construction-date threshold. Buildings predating modern energy codes are the primary target for ABC-aligned retrofit programs.
  • Monitor the DOE Building Technologies Office for funding opportunities and pilot programs that could offset retrofit costs, particularly for multi-site or large-footprint facilities.
  • When sourcing construction or retrofit contractors, ask about digitization capabilities including BIM integration and prefabrication experience, as these are emerging as differentiators in competitive bids.

Sources

Featured companies

Your experts belong here

Every story in MarketScale Engineering & Construction starts with a company putting its project engineers, superintendents, and estimators on the record. Buyers are already reading this topic. The only question is whose experts they find.

Owners shortlist firms they already trust, and your field leaders become the reason your name is on that list.

Book DemoSee how it works15 minutes, straight to a calendar.

About the author

MarketScale Newsroom
MarketScale NewsroomEditorial Team, MarketScale

The MarketScale Newsroom reports on the companies, technologies, and trends shaping 16 B2B industries. It turns primary sources and expert commentary into clear, useful coverage for the people doing the work.

B2B Weekly

The week in Engineering & Construction, and sixteen other industries, every Monday.

Ten stories, one-line takes, five minutes. Free.

Engineering & Construction: are you visible to AI?

Before they reach out, Engineering & Construction buyers ask AI engines which vendors to trust. Explore how your experts, customers, and partners can become useful content for buyers and AI search.

Free Trial

You just read one Engineering & Construction expert. Your company is full of them.

This article was produced through MarketScale. The same platform turns your project engineers, superintendents, and estimators into the articles, video, and social content Engineering & Construction buyers are searching for. Start a free trial and see it with your own people. For qualifying companies, no credit card, no demo required.

NPS +73 · 1,000+ creators · 38+ countries

What your free trial includes

Hands-on access to the MarketScale platform
Media requests to your crowd, remote recording, AI writing tools
No demo required. No credit card.
For qualifying companies. Company confirmation required.

More Engineering & Construction Insights

Element’s Charlotte lab makes tensile specimens from turbine blade roots

Element’s Charlotte lab makes tensile specimens from turbine blade roots

Element Materials Technology’s Charlotte lab wire-EDMs one-eighth-inch cylinders from the root of a turbine blade and low-stress grinds them into tensile specimens—work value stream manager Daniel Steele says he’s not aware other labs do at this size. The lab, which invested $3.2 million in 2019 according to Aerospace Manufacturing and Design, is adding creep and stress rupture frames under a lease signed in January.

  • 01The extraction know-how has a paper trail: Aerospace Manufacturing and Design reported in March 2019 that Element’s $3.2 million Charlotte investment included EDM plunge machines—and that Charlotte was the first Element lab to install them for extracting cylindrical specimen blanks.
  • 02Deloitte's November 2025 outlook put manufacturing construction spending down 7% year over year by July 2025, so a lab adding floor space and creep frames is growing inside one of the few pockets Deloitte flagged for expansion.

Sep 30, 2026

NMHC survey: 37% raised pricing on projects on hold

NMHC survey: 37% raised pricing on projects on hold

NMHC's September construction survey found 37% of respondents repriced shelved projects upward, versus 17% in June. Starts slowed too: 29% of firms started fewer projects, and a growing share saw labor and material costs outrun inflation.

  • 01Upward repricing of projects held three to six months rose from 17% of survey respondents in June to 37% in September, while downward repricing fell from 38% to 14%.

Sep 28, 2026

CMHA’s 2026 report estimates paver and wall production

CMHA’s 2026 report estimates paver and wall production

CMHA's 2026 Hardscape Production Report combines confidential survey data from 41 manufacturers with broader industry estimates to track segmental concrete pavement and retaining wall production in the US and Canada.

  • 01CMHA surveyed 26 pavement and 38 segmental retaining wall (SRW) producers, with many making both products, combining confidential data with broader industry estimates.
  • 02NALP forecasts mild to moderate 2026 growth with regional variation, as inflation pressures consumers and landscapers struggle to hire qualified crews and maintain margins.
  • 03Manufacturers expect future product innovation around sustainability, stormwater management, design flexibility, and installation efficiency.

Sep 28, 2026

Explore More Engineering & Construction Insights

Read more expert perspectives from across Engineering & Construction.

Browse Engineering & Construction Hub

About the Expert

MarketScale Newsroom
MarketScale Newsroom

Editorial Team

MarketScale

The MarketScale Newsroom reports on the companies, technologies, and trends shaping 16 B2B industries. It turns primary sources and expert commentary into clear, useful coverage for the people doing the work.

For B2B teams

Your experts could be publishing here

Stories like this one run on content MarketScale captures from real practitioners. See how your team's expertise becomes coverage in Engineering & Construction and beyond.

Book a Demo

Or call us. No forms required. We pick up. 214-945-2512