The Wall Street Journal today reports that Ford has been secretly developing a truly affordable EV pick-up to compete with China's dominance in the EV market. Ford has to adapt its old/traditional ways of building and three themes emerge to be successful these days in building anything affordably:
1. Simplification: This EV will not have any of the bells and whistles that other, more luxurious cars have. Simpler parts are to be used in all areas of the vehicle.
Lesson for Housing: More affordable housing does not have to be ultra-fancy or be termed 'luxury'. It has to be functional, meet a need. It has to be solid, well-built. Serve its purpose. It needs to be simplified to the basics. And be aesthetically pleasing.
2. Work with tech: Ford is working closely with tech professionals to incorporate as much technology not only in the vehicle, but especially in the manufacturing process. Ford veterans are working together with tech outsiders to combine skills, ideas, solutions, etc.
Lesson for Housing: Our outdated, semi-historic building methods need to be replaced with more tech-fueled solutions and methods, learning from outside the construction industry, which is often stuck in the past. Tech-derived building components and assembly are all possible.
3. Reduced human labor: Ford is reducing the number of people needed to build a vehicle. Robotics and automation can perform many human tasks (that often require inhuman efforts and time!) faster, more consistently and 24/7.
Lesson for Housing: Construction with prefabricated components built in factories 24/7, can not only accelerate the time it takes to build, but also reduce waste and build more precisely. We could build triple the number of housing units if construction occurred 24 hours per day rather than 8 hours per day. Reducing construction time reduces financing costs. Human labor working around the clock is not viable, and we have a shortage of skilled labor that is unlikely to be resolved anytime soon.
Our industry's obsession with building more luxurious homes (that are more profitable) the old way has gotten us to where we are today: unaffordable housing and politicians fueling the anger (to fuel their own objectives) that comes with the highest and rising cost to most consumers, housing.
