DMDmodular is manufacturing modules for the world's tallest modular hotel and is set to take US modular construction market by storm

20 grudnia 2019

The global modular construction market is booming with American companies at the forefront of this modular revolution. This is especially the case in the hotel sector where New York is home to the tallest modular hotel in the world. DMDmodular, a company that is both quality-focused and agile, is creating the modules for the hotel and is set to take the US modular construction market by storm.

Booming market

The modular construction industry is booming in the United States and all around the world. Over the last five years, it has doubled in size to become an $8 billion industry. And forecasts for the industry look even more promising.

McKinsey experts conservatively value the market for modular in new real estate construction at $130bn in Europe and the US by 2030 and could deliver annual cost savings of $22bn as it produces up to 80 percent less waste than traditional construction. Experts predict that in the next decade leaders of the real estate industry will learn how to scale up and optimize modular projects and will be able to reduce construction costs by 20%.

Modular construction opens the way for quicker development processes and this primarily the reason why the market is booming. Recent modular projects have already established a solid track record of accelerating project timelines by 50 percent. So, if you own rental apartments, hotels, restaurants or student accommodation, the sooner you are in business, the sooner your property is earning. If you are utilizing modular construction in your project, you may well capture market demand ahead of your competitors.

Ewelina Woźniak-Szapkiewicz, CEO of DMDmodular, one of the leaders in the modular construction segment

Developing a hotel with modular technology also ensures that the quality of the building will meet the specific standards set by investors. This is especially important in the hotel industry. Using modules saves time and money as well as maintaining control over the traditional fit out process.

Solid track record of modular construction

The United States is one of the leading construction markets in the world. According to the Modular Building Institute, 5% of all new builds in the US will be modular by 2021. It’s also already home to some of the most iconic modular buildings in the world.

One of them is the B2 modular apartment building located in Brooklyn, New York City, which was designed to provide affordable housing for the city's residents. At the time of its completion, this 32-storey, 359-foot tall apartment block was the tallest modular building in the world. It is one of the most well-known examples of modular building.

5_DMDmodular_Widok 1_4 piętra wieżowca, w formie prototypu na hali w Skawinie.jpg.jpg

Currently. the tallest modular hotel also located in the Big Apple, is the CitizenM Bowery New York hotel. This 21-storey building stands at 246 feet and was constructed using 210 modular units, each housing two hotel rooms. However, it’s important to mention that CitizenM’s hotel will not hold the title of the tallest modular hotel for long. At the moment, the tallest modular hotel is being built just a couple of miles away.

When its doors open, the $65 million, 168-room, 26-story AC Marriott New York NoMad (located at 842 Sixth Avenue) will be the world’s tallest modular hotel. It was designed by renowned architects, Danny Forster & Architecture. All of the modular elements that are being used in the construction of AC Marriott New York NoMad are developed by DMDmodular in the company’s factory in Skawina, Poland.

Why has DMDmodular - a European company - been chosen to construct modules for the world's tallest modular hotel in the United States?

Soaring land and property prices, a lack of skilled labor and a shortage of labor in general are some of the factors driving demand for modular construction in the US. However, there are obstacles to the growth of the modular market. The most significant hurdle is the limited production capabilities of US-based modular construction firms.

This limited supply provided by US companies is one of the reasons why it was more cost effective to build modules in Poland and ship them across the Atlantic to the construction site in New York rather than manufacturing them in a factory on the East Coast. As a matter of fact, shipping a module from Poland to the Big Apple costs the same as 400 US trucking miles.

But the main reason why DMDmodular was chosen to produce modules for the world's tallest modular hotel was the quality that the company can guarantee to its clients. Every module built in Skawina is meticulously designed, with a focus on the smallest of details. This is the most important factor for every hotel investor as all hotel rooms have to adhere to certain standards in order to meet the guest's expectations.

Furthermore, we have a highly-skilled workforce and a very capable, experienced management team (production, quality, procurement, etc) as well as a factory that is both modern and which implements all of the industry's latest procedures. We also work with the best suppliers of furniture, windows, and other interior and exterior products. Poland has become one of the hottest manufacturing markets in the world. Polish companies have a proven track-record of providing modules for some of the most important modular hotel projects in the world. The country is also famous for producing and exporting some of the world's best construction materials, furniture, windows, steel and other products needed to construct a building. For example, it's the world's fourth-largest furniture exporter and EU's biggest exporter of windows. It simply makes sense to construct turn-key modules (with full FF&E) here, in Poland. Undoubtedly, efficiency and integration are key factors to be successful in this modular market. DMDmodular has both of these qualities at a cost-effective rate.

Ewelina Woźniak-Szapkiewicz, CEO of DMDmodular, one of the leaders in the modular construction segment

DMDmodular on the front foot

The company has been growing rapidly from the start. DMDmodular’s manufacturing capacity is up to 1,000 modules per year. The company is currently working on delivering projects and has more in the global pipeline. The firm is working on hotel, dispersed hospitality, residential and student housing projects in the US, the UK, Germany, the Netherlands and Poland.

Our goal is to be a disruptor in the market. By working on the AC Marriott New York NoMad project, we have established our presence on the US market. We want to specialize in particular types of projects, to provide our clients with efficient, top quality products. We know hotels and student housing are going to be a rapidly expanding market in the US and the UK. Such projects require high-quality standards, shorter delivery times, flexibility and innovation.

Ewelina Woźniak-Szapkiewicz, CEO of DMDmodular, one of the leaders in the modular construction segment

DMDmodular focuses on the implementation of turn-key projects for the hotel, housing, and student housing sectors. The company's projects and products are based on the integration of three key values: quality, efficiency, and design. The firm’s technological solutions guarantee the quality and durability and can reduce construction time by up to 50%.

The company, as young as it is, has already been recognized by the industry. In 2019, DMDmodular won first prize at the prestigious MBI Awards of Distinction organized as part of the World of Modular event in Las Vegas. The company was recognized for its design and quality solutions offered to the academic facilities industry.

2020 will be an important year for the US modular construction market and for DMDmodular as well. We believe that together with our clients and partners we can greatly contribute to the market's development, by providing top quality and the best-designed modules that will redefine the modular construction industry.

Ewelina Woźniak-Szapkiewicz, CEO of DMDmodular, one of the leaders in the modular construction segment

About DMDmodular

DMDmodular, located near Krakow, Poland, is one of the leaders in the modular construction segment. The company’s products are primarily aimed at the domestic market as well as the markets of Western Europe and the United States.

Paweł Luty

Senior PR Consultant Linkleaders

+48 533 890 507