Modular Momentum

by tristan_marks | August 6, 2025 3:01 pm

North America is facing a housing crunch, especially in the affordable and middle-income segments. According to the National Low Income Housing Coalition (NLIHC), the U.S. faces a shortage of more than 7.3 million affordable and available rental homes for extremely low-income renters. This housing deficit is compounded by the loss of tens of thousands of housing units yearly due to disasters such as hurricanes, floods, and wildfires. In 2023 alone, FEMA assisted nearly 60,000 housing units impacted by declared disasters.

These challenges intersect with an escalating climate crisis and increasing construction costs driven by inflation, tariffs, and supply chain volatility. The diminishing labor force in the construction industry is just as concerning. Data from the American Community Survey (ACS) shows the percentage of construction workers aged 55 and older continues to climb, while the share of workers aged 25 to 54 is shrinking. Fewer young workers are entering the trades, intensifying long-term labor shortages.

In this landscape, volumetric modular construction is emerging as a powerful and practical solution, particularly when paired with steel. Modular construction offers accelerated timelines, controlled environments, and greater resilience. It also addresses labor, environmental, and economic pressures head-on.

 

Speed and greater certainty in construction schedules

One of the most significant benefits of modular construction is the potential for faster project delivery. Since volumetric modules are built off-site in controlled factory environments, fabrication can proceed simultaneously with site work, such as excavation and foundations. This parallel process can cut total project timelines by 20 to 50 percent, according to the Modular Building Institute (MBI). This not only allows developers to commence revenue generation faster, but it also helps bring urgently needed housing online more quickly.

Several developers have used modular construction to jumpstart stalled projects. Modular approaches can restore momentum and reduce financing risk by decoupling construction from unpredictable weather delays and labor shortages.

 

Resilient housing

Volumetric modular buildings made with steel offer added durability and resilience, particularly in regions vulnerable to extreme weather. Steel’s strength-to-weight ratio, fire resistance, and wind-load performance make it especially well-suited for coastal areas affected by hurricanes and tropical storms.

Light-gauge steel framing is commonly used for interior and non-structural components. In contrast, structural steel frames enable multi-story volumetric modules to be stacked safely for mid-rise residential or mixed-use buildings. These solutions allow architects and engineers to design confidently in high-risk zones without compromising aesthetics or usability.

 

Reducing material waste and environmental impact

Another major advantage of modular construction is its material efficiency. A study published in the Journal of Building Engineering found that modular construction can reduce material waste by as much as 83 percent for key building products, compared to traditional site-built construction. These reductions are attributed to precise manufacturing processes, improved storage conditions, and standardized material dimensions.

Modular building also offers environmental advantages through reduced embodied carbon. Since most construction activities occur indoors, projects can avoid using heavy diesel equipment, diesel generators, and temporary propane heaters. This limits emissions, improves air quality, and minimizes disruption to surrounding communities.

Further, a 2023 analysis from MBI found that modular construction can reduce energy use by up to 67 percent during the construction phase. Fewer deliveries, worker commutes, and onsite activities mean less fossil fuel use and fewer emissions—an increasingly important consideration for projects seeking to meet Environmental, Social, and Governance (ESG) goals or comply with climate-focused regulations.

 

Construction cost savings

In addition to time and environmental benefits, modular construction also offers measurable cost advantages. According to a 2023 report from the Center for American Progress (CAP), modular methods for low-rise multifamily housing can reduce overall construction costs by up to 20 percent. These savings stem from labor efficiencies, reduced rework, and shorter project durations.

The National Institute of Building Sciences (NIBS) also notes that modular construction can deliver projects 30 percent faster on average than conventional methods, enabling developers to begin leasing or operations earlier and realize revenue sooner. Factoring in time and labor efficiencies, they report an average five percent reduction in total project costs across various building types.

These savings are particularly important for affordable and workforce housing developers facing tight financing margins and rising interest rates.

 

Making construction work more inclusive

The fixed location and ergonomic tooling of modular manufacturing facilities help expand the construction workforce in meaningful ways. Workers at modular plants report fewer repetitive strain injuries, and the use of lift-assist devices can reduce the physical demands that typically limit workforce participation, especially among older workers and those with disabilities.

Perhaps most importantly, modular construction offers better predictability for daily schedules, making it easier for workers with childcare or eldercare responsibilities to participate in the trades. These job attributes make modular construction more attractive to parents, younger workers, and those seeking stable, long-term employment in construction-adjacent roles.

 

Real-world application

Florida-based Atlantic Development Consulting, LLC, is applying modular solutions to address the “missing middle”—families who earn too much to qualify for subsidized housing but still struggle with affordability. They are committed to modular construction for several reasons:

• Significantly reduced construction time, minimizing on-site disruptions and enhancing the overall project efficiency.
• Overall expense reduction due to savings on labor, fewer weather delays, and reduced construction material waste in the controlled factory environment.
• Higher quality construction with fewer defects, as each module undergoes rigorous quality checks, ensuring consistency and resilience that is impossible to achieve with traditional on-site methods.
• Enhanced resilience since steel modules are designed to withstand extreme weather, meeting all local safety codes in areas prone to hurricanes and tropical storms.

 

Ross Berman, chief operating officer of Atlantic Development Consulting, summarized the advantages this way: “We made the decision to utilize steel modular construction over traditional methods due to its speed, cost-efficiency, and quality control. Modular construction provides a scalable solution that is significantly faster while maintaining top-quality construction and sustainability.”

 

Steel and modular: A perfect pairing

Metal construction is particularly well-suited to modular fabrication. Steel framing is dimensionally stable, non-combustible, and recyclable—essential features for sustainability-conscious projects. A growing number of modular builders are turning to structural steel framing to support stackable multi-story volumetric modules.

According to a 2024 MBI industry snapshot, steel is now used in more than 40 percent of non-residential modular buildings and a growing share of mid-rise modular housing. Companies like BECC, Connest, modDsys, and Xtreme Cubes are pioneering heavy steel modular systems capable of supporting four- to eight-story buildings while offering broad design flexibility.

Innovations such as prefabricated steel floor and ceiling systems, integrated mechanical, electrical, and plumbing (MEP) components, and panelized exteriors are helping reduce on-site work while preserving architectural freedom. These systems enable high-performance building envelopes and fast installation, supporting the integration of energy-efficient and smart building technologies.

 

Looking ahead

Volumetric modular construction—particularly when paired with steel—is helping developers, architects, engineers, and contractors meet the moment. It provides a practical path forward in a time of overlapping challenges: rising costs, shrinking labor pools, urgent housing shortages, and mounting climate risks.

By embracing modular methods and leveraging metal’s resilience and sustainability, the industry can build faster, safer, and smarter—and meet today’s housing needs and tomorrow’s environmental imperatives.

Alan Scott[1], FAIA, LEED Fellow, LEED AP BD+C, O+M, WELL AP, CEM, is an architect and consultant with over 36 years of experience in sustainable building design. He is director of sustainability with Intertek Building Science Solutions in Portland, Ore. To learn more, follow Alan on LinkedIn[2].

Ryan Knowles has over 20 years of experience in the modular buildings industry and is Senior Manager, Industrialized Buildings with Intertek.

Source URL: https://www.metalarchitecture.com/articles/columns/constructive-insights-modular-momentum/

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