Let’s start by defining modular construction. Simply put, it’s the construction of a building using prefabricated pieces that are constructed in a factory and then shipped to the site.

There are two basic types of modular construction – 2D + 3D volumetric.

2D modular construction

2D is typically referred to as panelization where just the walls are prefabricated, shipped and erected on-site.

3D volumetric modular construction

3D volumetric is when an entire 3-dimensional unit is constructed in a factory, shipped and erected.

These typically come with all amenities pre-assembled in the factory (e.g. all windows, doors, kitchen cabinets, appliances, bathroom accessories, etc.). Even the interior dry wall is installed in the factory!

Let’s focus on 3D volumetric modular construction.

advantages of 3D volumetric modular construction

• Saves time (+ time equals money) | 3D modular construction can shave MONTHS off of the construction schedule depending on the size of the project
• No weather delays since the pieces are fabricated inside a controlled environment
• Improved quality with precise computer-aided assembly
• Increased sound transmission coefficient because of double construction between units vertically + adjacently
• No need to store materials on site – pieces/units are picked off a truck + set in place
• Recent studies show up to a substantial reduction in wasted materials
• Lower on-site labor costs

disadvantages of 3D volumetric modular construction

• Fewer suppliers (but growing)
  • Mass production is limited
  • Some factories won’t take small projects (economy of scale)
  • Many factories are booked solid up to a year in advance
• Front-loaded design | modular construction requires complex decisions to be made up-front with little room for change during construction
• Permit/approval process can be complicated + longer than conventional “stick-built” construction
• Requires special transportation permits (+ costs)
• Transportation risks | since the unit come complete with all amenities, the slightest mishap during shipping could require significant repairs to the unit or even damage it beyond repair
• Once on-site it requires larger pick radius; overhead utilities and/or narrow streets can be a challenge

With all that said, the 3D volumetric construction industry has continued to grow exponentially over the last five years. With developers becoming more aware of the major advantages (quality, technology, sustainability + time savings), as well as being more savvy of the design process, we have seen the residential market (apartments, condos + student housing) grow tremendously in the use of modular construction.

What can we expect in 2025?  Depending upon what forecasts you believe, the global modular construction industry is expected to grow to nearly $100 billion (35% of that is expected to be just in the United States). We expect to see modular grow in other markets as well, such as office + mission critical.

We aren’t just playing with LEGOs anymore…