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Market analysis··2 min read

Serial and Modular Prefabrication: Significant Underutilisation in Multi-Storey Residential Construction

The German Timber Industry Federation (HDH) highlights the insufficient use of serial and modular construction methods in multi-storey residential building.

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Serial and Modular Prefabrication: Significant Underutilisation in Multi-Storey Residential Construction. Illustrative image generated using artificial intelligence (AI). The image does not depict a real property, person or event and is not a documentary photograph. Labelled in accordance with Article 50(4) of the EU AI Act.

The German construction industry, particularly in the multi-storey residential building segment, is experiencing a glaring underutilisation of serial and modular prefabrication methods. Current surveys show that only nine per cent of new builds in this sector use these efficient construction techniques. This finding is communicated by the German Timber Industry Federation (HDH) on the occasion of the 148th Conference of Federal and State Construction Ministers (BMK).

The Conference of Federal and State Construction Ministers, taking place on 10 and 11 September in Berlin, provides the framework for an urgent demand from the HDH to the federal states. The association appeals to political decision-makers to give greater consideration and promotion to the potential of serial and modular construction, especially using timber. A substantial increase in these construction practices is considered essential for accelerating housing construction in Germany.

Potentials and Challenges in Housing Construction

The low adoption rate of nine per cent in multi-storey residential building contrasts with the known advantages of prefabrication, which include shorter construction times, higher precision, and improved cost-efficiency. The HDH argues that increased use of these methods could not only contribute to faster provision of housing but also secure quality standards and alleviate the shortage of skilled workers on construction sites. This is particularly relevant in light of current housing policy objectives and the demand for affordable housing.

The federal states are urged to create framework conditions that facilitate the use of prefabricated components and thus optimise construction processes. This includes adapting building regulations and providing funding instruments to make investment in industrial manufacturing capacities and innovative construction solutions more attractive. The HDH explicitly emphasises the role of timber as a sustainable and high-performance alternative in serial construction.

Demands on the Conference of Federal and State Construction Ministers

The HDH's demands aim to industrialise construction production and thereby significantly increase efficiency in housing construction. The current practice, where only a small proportion of multi-storey dwellings rely on pre-produced elements, is seen as an obstacle to future-proof construction policy. A reorientation or at least a significant expansion of construction practices therefore appears necessary to adequately address the challenges of the German housing market.

  • Only 9% of new builds in multi-storey residential construction use serial/modular prefabrication.
  • The German Timber Industry Federation (HDH) calls for greater promotion of these construction methods.
  • The Conference of Federal and State Construction Ministers (BMK) on 10 and 11 September is the addressee of this demand.
  • The goal is to accelerate and increase efficiency in German housing construction.

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