- Slice of Construction
- Posts
- Predictions for the Future of Modular Construction in 2025
Predictions for the Future of Modular Construction in 2025
Jared S. Taylor
January 15, 2025
As the construction industry continues to evolve, modular construction has emerged as an impactful solution to some of the sector’s most pressing challenges. From addressing labor shortages to increasing sustainability, modular construction is poised to shape the future of the built environment. To gain some expert insight into where the industry is headed in 2025, Jared spoke with Roger Krulak, Founder & President of FullStack Modular.
With over 25 years of experience in construction and development, including spearheading the creation of the tallest volumetric modular building in the world, Roger provides a wealth of knowledge. In this article, we’ll explore the trends, technologies, and challenges shaping modular construction in 2025.
Key Trends Shaping Modular Construction in 2025
1. Convergence of Supply Chains
According to Roger, one of the most significant trends in modular construction is the convergence of suppliers and sub-assembly manufacturers. This standardization mirrors developments in the tech industry, where universal compatibility (think USB-C) has streamlined operations.
“You’re starting to see an industry that is focused on creating a supply ecosystem for the built environment. This convergence is bringing about more common and prolific systems, which is a positive step forward for the modular space.”
2. Vertical Integration
Another key trend is the growing vertical integration between developers and modular manufacturers. Large developers, such as Greystar, are increasingly investing in modular factories to align construction goals with factory efficiencies.
“This integration helps solve the ‘bad marriage’ between the lumpy development cycle and the steady demands of running an efficient factory.”
How Demand for Modular Construction is Changing
Demand for modular construction is growing as developers search for cost-effective and time-efficient alternatives to conventional construction methods. Roger highlights that leading developers are embracing modular solutions, recognizing their potential to meet multifamily housing goals in a constrained market.
“Developers are still developing. If they can’t get the results they need through conventional methods, modular construction becomes a viable alternative.”
Technological Innovations Driving Modular Construction in 2025
1. AI-Powered 3D Modeling
AI and advanced 3D modeling are impacting the way modular construction projects are designed. Roger explained that AI can now generate thousands of drawings in minutes, saving significant time and reducing labor requirements.
“For example, you can ask AI to create a common floor plate for a building and adjust parameters floor by floor. In just a minute and a half, you have detailed instructions for the entire structure.”
2. Automation and Robotics
The use of robotics and CNC machines is streamlining repetitive tasks, improving productivity, and reducing costs. These technologies, once complex to implement, are now more accessible and easier to deploy.
“Automation is growing daily. You can now have robots or CNC machines up and running within hours, driving efficiency across the board.”
3. Integration of Digital Twins and BIM
Digital twins and Building Information Modeling (BIM) are now integral to modular construction. These technologies enable precise instructions to be sent directly to manufacturing machines, ensuring accuracy and reducing waste.
“BIM is no longer just a design tool—it’s now a universal code that connects every step of the modular process.”
Cost, Labor, and Scalability in Modular Construction
1. Cost Efficiency
Modular construction offers significant cost savings—but only when integrated into a well-planned design-manufacture-construct approach. Roger emphasized that modular is not a "one-size-fits-all" solution; its success depends on meticulous planning and execution.
“Manufacturing was created to make work uncomplicated. However, it requires work that can be automated and accomplished with specific instructions.”
2. Labor Challenges and Solutions
Labor shortages remain a challenge for modular construction. To address this, Full Stack Modular has focused on training a workforce capable of operating in industrial environments.
“We’ve created a moderately skilled workforce, supervised and guided with specific instructions, to ensure high-quality, cost-effective production.”
3. Scaling Operations
Scaling modular operations requires overcoming supply chain challenges and aligning development goals with factory output. While supply chain disruptions impact both modular and conventional construction, a trained workforce and streamlined processes help mitigate risks.
Misconceptions About Modular Construction
Roger identified two major misconceptions hindering the wider adoption of modular construction:
1. On-Site Integration
“Blending factory-built components with on-site trades is still maturing. This retraining of the workforce is essential to fully realize modular’s value.”
2. Financing Challenges
“Financing institutions are slow to adopt modular methods, despite their predictable costs and timelines. The fact that modular assets don’t land on-site until late in the process creates hesitation.”
Future Possibilities for Modular Construction
1. Integration with Smart Cities and 3D Printing
Roger sees modular construction playing a key role in smart cities, integrating with 3D printing and IoT-enabled buildings to create efficient and sustainable urban environments.
2. Vision Beyond 2025
Looking beyond 2025, Roger envisions modular construction addressing housing shortages, driving sustainability, and redefining urban development.
“Modular construction is more than a solution—it’s a movement that will continue to shape the future of the built environment.”
Conclusion: The Road Ahead for Modular Construction
Modular construction is no longer a niche solution—it’s becoming a cornerstone of the construction industry. As Roger Krulak’s insights reveal, the industry’s future lies in technological innovation, workforce development, and closer integration between developers and manufacturers. By addressing misconceptions and embracing modular’s potential, construction leaders can drive meaningful change in 2025 and beyond.
Key Takeaways for Construction Leaders and Executives
The convergence of supply chains and vertical integration is driving modular construction forward.
AI, automation, and digital twins are transforming processes, reducing costs, and improving efficiency.
Overcoming challenges like on-site integration and financing is essential for broader adoption.
Modular construction is uniquely positioned to meet sustainability goals and integrate with smart cities.
THIS IS NOT A SPONSORED POST.
Special thanks to Roger for his insights. To learn more about Roger and FullStack Modular, visit: https://www.fullstackmodular.com/.
Roger was originally a guest for episode 17 of the podcast. Check it out here.