The Rise of Modular Construction: What It Means for Future Construction Managers
September 10, 2025The construction industry is poised to undergo a major shift, driven by new technologies, changing demands, and a growing focus on sustainability. From drones used for site surveys to 3D-printed building components, innovation is reshaping how we design and build. At the same time, green building practices are becoming standard, with an emphasis on energy efficiency and reduced environmental impact.
One of the most promising developments in this transformation involves faster, smarter, and more sustainable ways to create buildings using modular construction.
What Is Modular Construction?
Modular construction involves designing and fabricating buildings in sections, or “modules,” in a factory setting that are then transported to be assembled on-site. The materials and building codes are the same as with traditional construction, but the process can cut project timelines in half and reduce materials costs.
This off-site, piecemeal approach can also improve quality control, reduce weather-related delays, and make better use of resources. For affordable housing initiatives, it can help meet urgent demand with speed and cost-efficiency. Commercial developers can use it for offices, hotels, and retail spaces, while healthcare facilities benefit from its ability to deliver clean, controlled environments quickly. Schools and universities are also adopting modular methods for housing and classroom buildings, where flexibility and minimal disruption are key.
Why Is Modular Construction Gaining Momentum?
Speed and cost are the leading factors in the growth of modular construction, delivering housing over 40% faster than conventional methods, and providing 20–40% cost savings on multifamily housing projects. With ongoing labor shortages, 52% of professionals see modular construction as a practical solution to limited skilled labor, with a beneficial impact on adjacent sectors.
“By retooling multifamily housing production from beginning to end, we’re supporting everyone involved with construction—architects, engineers, general contractors, union workers—to do what they do faster and more efficiently.” - Rick Holliday, CEO of Factory OS.
Factory-built modules can also reduce waste and energy use, with some projects reporting up to 90% less material waste. Building modules in controlled environments is generally safer than on traditional job sites, and since modules can be added or removed as needed, buildings become easier to expand or adapt.
When paired with technologies like Building Information Modeling (BIM), modular construction becomes even more precise. BIM allows teams to digitally plan every detail before construction begins, improving coordination and reducing errors.
Why the Construction Industry Needs More Construction Managers
According to Grand View Research, the U.S. modular construction market reached more than $100 billion in 2024. That number is expected to grow as more companies recognize the value of modular building and as more professionals are trained to lead the way.
Despite this growth, there are still a limited number of firms and skilled professionals in the market. As modular construction expands, the industry needs professionals who can lead these projects with confidence. Construction managers are responsible for coordinating off-site and on-site teams, ensuring quality and compliance, and using digital tools like BIM to streamline workflows. They also need to communicate effectively with clients, architects, and engineers to keep projects aligned and on schedule.
Modular construction at-scale will also require more than technical innovation, specifically industry leaders who will emphasize the need for increased investment in public awareness, policy advocacy, and factory capacity to meet the growing demand.
Construction Management at Capitol Tech
At Capitol Technology University, our degree programs in Construction and Facilities Management put you at the forefront of industrial knowledge and equip you with the skills needed to succeed in this dynamic field. Our programs teach students how technology and construction powerfully intersect for the development of safer, more innovative, and more effective projects with improved outcomes.