In recent times, there have been numerous reports of giant new production facilities for serial timber and modular construction. Up to 30,000 residential units a year are to be built at Nokera’s production site in Möckern, Germany, which was inaugurated in 2024. In Richen, Gropyus is currently launching a €300 million robotic production facility where one wall or ceiling element is going to be produced every 16 minutes. The company’s target annual output is 250,000 m² of gross floor space, and the level of automation is to be raised to up to 86%. Timpla by Renggli plans to produce up to 2,000 modules per year in Eberswalde, Germany. Kaufmann Bausysteme currently produces up to 4,000 modules a year at three sites and carries out large construction projects with 500 to 1,000 modules in Berlin and other major German cities. In Austria, Binderholz established a production facility for modular construction called b-solution in Hallein, where, in addition to prefabricated wall modules, ceilings, and roofs, room modules with complete building services installations and included wet rooms are manufactured. The company estimates the annual capacity at 130,000 m² of gross floor area.
Even more than the mega projects mentioned above and others announced, it is especially large and medium-sized timber construction companies that have started shifting their work from the construction site to the factory halls and are constantly increasing the degree of prefabrication. In addition to two-dimensional wall and ceiling elements and three-dimensional room modules, the serial renovation of the aging building stock is also playing an increasingly important role.
High demand, little construction activity
All of this is happening against the backdrop of a weak construction industry and, recently, a sharp decrease in building permits in Germany and Austria. This is in contrast to a glaring housing shortage in Germany, which has now grown to over 800,000 units.
We started out two years too early, but if we only started now, we would probably be two years too late.
It is therefore only a matter of time before the construction sector picks up again and the capacities which are currently being created are actually needed, according to some industry experts. As one market participant who recently entered the business put it: “We may have started out two years too early, but if we only started now, we would probably be two years too late.”
In addition to the difficult market environment, this statement also implies the fact that new production lines and business models are by no means plug-and-play solutions. With increasing size and a high degree of automation, the time needed to put a plant into operation also increases significantly. In fact, it can take several years before the targeted output is actually achieved.
Currently, numerous market participants report a satisfactory order situation, with the focus often being on public projects such as kindergartens and schools, as well as hotel projects and commercial buildings. The residential construction sector is also said to be slowly picking up again.
Making the most of the advantages
Comprehensive project planning and optimal preparation of the construction site are repeatedly cited as the key success factors of any project. Only when serial timber construction does not waste time on the construction site can it fully play to one of its greatest strengths, i.e. shorter construction times. To achieve this, good partnerships with concrete builders are required or companies have to become general contractors themselves – a path that many companies in this segment have already successfully taken. This is highly valued by clients due to the easier communication and project management.
Advantages of serial timber construction compared to concrete and brick construction include a significantly higher construction speed and continuously increasing productivity – in addition to numerous other advantages. Even in economically challenging times, it is therefore gaining market shares. Once there is a recovery of the construction industry, serial timber construction could play a key role – and then, at the very latest, it will become clear who has done their homework and which of the new production capacities can hold their own in the market.
