The core of supply-side structural reform lies in improving total factor productivity through scientific and technological innovation. Under the new normal, grasping scientific and technological innovation is equivalent to seizing the "key" to supply-side structural reform. In 2016, at the National Conference on Science and Technology Innovation, the General Assembly of the Chinese Academy of Sciences and the Chinese Academy of Engineering, and the Ninth National Congress of the China Association for Science and Technology, General Secretary Xi Jinping pointed out: "To achieve the 'Two Centenary Goals' and realize the Chinese Dream of the great rejuvenation of the Chinese nation, we must adhere to the path of independent innovation with Chinese characteristics, face the frontiers of world science and technology, face the main economic battlefield, and face the major needs of the country, accelerate scientific and technological innovation in all fields, and seize the initiative in global scientific and technological competition." These "three orientations" have pointed out the main direction for China's scientific and technological innovation and opened up a new path for the supply-side structural reform of the construction industry.

Since the 18th National Congress of the Communist Party of China, the reform of the construction industry has been driven by technological innovation along two routes: one is the reinforced concrete cast-in-place system, and the other is the prefabricated assembly structure system. Experts believe that in the new era, the development model of the construction industry based on the cast-in-place structure system has diminishing "marginal effects," and its drawbacks are gradually emerging. In contrast, prefabricated buildings have advantages such as short construction periods, easy standardization, high precision, green energy savings, and labor cost savings, which are of great significance for promoting supply-side structural reform and the new urbanization process. Therefore, in the long run, these two routes will not always run parallel but will gradually converge under the drive of emerging technologies such as cloud computing, big data, the Internet of Things, mobile Internet, and artificial intelligence, forming a development model dominated by prefabrication and supplemented by cast-in-place. In other words, in the future, prefabricated buildings will become one of the main directions of transformation in the construction industry. This is determined by the needs of economic and social development and is also an inherent requirement for the reform and transformation of the construction industry.

Transforming toward industrialization is an inevitable choice for maintaining the sustained and healthy development of the construction industry. After more than 30 years of reform and opening up, the position of China's construction industry as a pillar industry has been continuously consolidated. However, the reality that the construction industry is "large but not strong" and "large but not excellent" has always been a shortcoming restricting the further development of the industry. Especially under the premise that the driving force formed by low-cost resources and factor inputs in China is significantly weakening, the demographic dividend era is about to pass, and ecological civilization development faces increasingly severe environmental pollution, the construction industry is faced with arduous tasks of power conversion, mode transformation, and structural adjustment. It must rely on more and better scientific and technological innovation to inject new impetus into industry development. Therefore, under the strategic requirement of building a "manufacturing power" in "Made in China 2025," the transformation of the construction industry toward industrialization represented by prefabricated buildings has become an inevitable choice for "facing the frontiers of world science and technology, facing the main economic battlefield, and facing the major needs of the country."

In recent years, the state has successively clarified in the "Several Opinions on Further Strengthening the Administration of Urban Planning and Construction" and the "Government Work Report" the need to "vigorously promote prefabricated buildings," and issued the "Guiding Opinions on Vigorously Developing Prefabricated Buildings," providing guidance for the industrialization transformation of the construction industry and planning the development direction of prefabricated buildings in the construction industry.

In fact, the Ministry of Housing and Urban-Rural Development has been moving forward in promoting the development of prefabricated buildings. In 2014, the Ministry of Housing and Urban-Rural Development clearly proposed in the programmatic document for promoting the reform and development of the construction industry—"Several Opinions on Promoting the Development and Reform of the Construction Industry"—to change the development mode of the construction industry and promote key technology research and application in aspects such as the modern structural system of the construction industry, architectural design, production of components and parts, construction, and integrated main body decoration. In 2016, the Ministry of Housing and Urban-Rural Development held a national on-site meeting on prefabricated buildings in Shanghai, proposing to "vigorously develop prefabricated buildings and promote the transformation and upgrading of the construction industry," and clarified seven tasks that must be done well in developing prefabricated buildings. In 2017, the Ministry of Housing and Urban-Rural Development issued the "13th Five-Year Plan Action Plan for Prefabricated Buildings," adopting various measures such as compiling plans, formulating standards, consolidating foundations, and cultivating teams to vigorously promote prefabricated buildings, pointing out the direction for the development of China's prefabricated buildings in the coming period.

Wang Tiehong, President of the China Construction Industry Association, believes that after recent years of development, China's prefabricated buildings have made breakthrough progress, and three models are in a leading position in the world: First, reinforced concrete prefabricated buildings (PC) represented by Vanke and Yuanda Housing Industry. This model is suitable for multi-story and small high-rise office and residential buildings with large volume and wide coverage. Based on the traditional technical framework and frame-shear structure, it focuses on the componentization of exterior wall panels, interior wall panels, floor slabs, etc., with a componentization rate of 40% to 50%, and extends to on-site integrated decoration, further reducing costs. It has approached the cost of traditional technology and can build about one floor in 5 days. Second, steel structure prefabricated buildings represented by Southeast Grid and China Construction Steel Structure. This model is suitable for high-rise and super high-rise office and hotel buildings, and some applications in residential buildings. Based on the traditional technical core tube, it focuses on factory production of steel structure components as much as possible and extends to on-site integrated decoration, with a componentization rate of 30% to 40%, emphasizing the integration rate. Third, all-steel structure prefabricated buildings represented by Yuanda factory-made sustainable buildings. This model is suitable for high-rise and super high-rise office, hotel, and apartment buildings, can completely replace traditional technology, and is more energy-saving (80%), steel-saving (10% to 30%), concrete-saving (60% to 70%), and water-saving (90%), with a componentization rate of 80% to 90%. Components are produced and decorated in one step in the factory, quickly installed on site, and highly standardized and integrated, making the cost 1/4 to 1/3 lower than traditional technology. It can build 1 to 2 floors per day, achieve "six savings and one environmental protection," and conform to the concept of circular economy.

At present, more and more regions are beginning to recognize the great significance of promoting prefabricated buildings for social, economic, and environmental development. As of the end of 2016, more than 30 provinces and cities across the country have specifically issued guiding opinions and related supporting measures for prefabricated buildings, and some provinces and cities have issued policies and financial support measures and proposed quantitative targets. Taking Shanghai as an example, as a typical representative of the "key promotion" area, Shanghai required in 2016 that all eligible new civil buildings within the outer ring road adopt prefabricated buildings, and more than 50% outside the outer ring road; starting from 2017, the proportion outside the outer ring road should increase year by year on the basis of 50%. For prefabricated residential projects with a total construction area of more than 30,000 square meters and a prefabrication rate of 45% or more, a subsidy of 100 yuan per square meter is provided, with a maximum subsidy of 10 million yuan per project. In 2016, Shanghai implemented 13.85 million square meters of prefabricated buildings, achieving double growth for two consecutive years; there were 41 prefabricated component production enterprises, with production capacity exceeding 12 million square meters. At present, the new atmosphere of various regions actively implementing the central decision-making arrangements and vigorously promoting the development of prefabricated buildings has taken shape.

"At the new historical starting point of China's development, place scientific and technological innovation in a more important position and sound the clarion call for building a world power in science and technology." Since the 18th National Congress of the Communist Party of China, China has planned and deployed from a holistic perspective, placing the key "move" of "innovation" in an important position in the overall development, and interpreting the thesis that "innovation is the primary driving force for development" to the fullest. From the perspective of the reform of construction industry enterprises, transforming toward industrialization is, on the one hand, the inevitable path to solving the problems of labor shortage and extensive development mode in the industry; on the other hand, it is also an active choice to benchmark against international standards, go global, improve quality and efficiency. As an important place for transforming high-tech into real productivity, the transformation of the construction industry toward prefabricated structure systems has driven the rapid development of BIM technology, passive ultra-low energy green building technology, and engineering general contracting. In terms of integration with information technologies such as cloud computing, big data, the Internet of Things, mobile Internet, and artificial intelligence, prefabricated buildings have also demonstrated their superiority, allowing industry insiders to see a beautiful picture of rapid development of the construction industry in areas such as smart construction site construction. It can be said that it is precisely the "move" of scientific and technological innovation—prefabricated buildings—that has led the construction industry into a new era of reform and development.