Panelization is the process of manufacturing prefabricated exterior and interior wall assemblies under controlled environmental conditions using light wood or light-gauge metal framing. The panels are prepared using cutting-edge automation, assembled according to the design specifications, and then packaged for transportation. Once at the job site, panels can be installed by a crew and cranes (Fig. 3.1).

The highest efficiency for panelized building manufacturing is achieved when the maximum amount of work is completed in the factory, with the least waste, in the shortest time. In addition to the studs, headers, and plywood or OSB sheathing, it is possible to install doors, windows, siding, trim, and other finish elements in the factory. However, this creates a heavier and fragile panel which could increase costs and the complexity of transportation.
The process differs from the traditional site-built method because the wall panels are fabricated under controlled environmental conditions, providing higher precision and quality. The site-built method is more labor intensive and more susceptible to errors compared to panelized buildings.
Panelized assemblies are considered to be a green method of construction. The process is recognized by many green building certifications, including the ICC 700 National Green Building Standard. Also, due to its tremendous design flexibility, panelized construction is considered the fastest growing segment of residential buildings in the US.