Business View Magazine | September 2022

77 BUSINESS VIEW MAGAZINE VOLUME 9, ISSUE 9 ELEMENT5 LP Another factor that the company’s investor relationships addresses in favor of Element5 is the spike in prices of timber products. “The price of lumber has gone through many peaks and troughs over the last few years,” says Chouinard. “Although we’re still subject to volatility, our investor relationships smooth out some of the peaks and troughs, resulting in more consistent, predictable pricing for wood. This favorable pricing puts us at a significant competitive advantage over other manufacturers without the same control over their supply chains.” Whereas Element5 has traditionally provided mass timber services for custom projects, it sees more growth in standardized buildings that it can mass produce quickly, efficiently, and cost- effectively. Its push into standardized builds is informed by market intelligence showing a market gap that mass timber can quickly fill. “The light wood frame industry serves the four stories and fewer market niche, while the concrete and steel industry dominates twelve stories and above,” explains Chouinard. “However, the missing middle is the four- to twelve-story range, which is where we’re seeing a huge opportunity for mass timber because that’s where it makes the most sense.” While the company still works on custom projects, it has developed standardized projects that it calls Profiles, using designs optimized for certain buildings and suited for mass timber. “Profiles began when we sat down with one of our associate architects to develop a mass timber, affordable housing solution,” says Chouinard. “Without an actual project in mind, we designed, engineered, and optimized the designs to lower costs and facilitate constructability. During this process, we secured an affordable housing opportunity – the YWCA in Kitchener, Ontario. We submitted a proposal for the design-build project, and our proposal undercut every other bidding affordable housing manufacturer in the province of Ontario, including light wood and precast concrete.”