New Company Modularis Expands Modular’s Reach into Brazil’s Residential Market
Eight months from ground break to completion of a 75-unit mixed use development is fast, some would even say not possible. But it’s the accelerated schedule for a new residential development in Sao Paulo, Brazil, made possible by modular construction. The project is set to break ground in May of 2023 and will be comprised of two concrete floors with commercial spaces and 11 floors of modular apartments and is set to be complete by the end of the year. Brazilian modular construction firm Modularis hopes that the mid-rise project will be a showcase and will bring more publicity for the innovative construction technology’s use in residential construction in Brazil.
Modularis is the brainchild of Eric Lesbre, a French engineer who began his career in the oil and gas industry. He developed a large auto parts business in Europe before starting Modularis in 2010. He admits to copying an existing European business that also controlled that was successful in modular construction. Modularis had several successful commercial development projects in Brazil that allowed it to sustain the business. Clients included Toyota, BASF, Dow Chemicals, Scania, and many other big names in the country. The focus was on offices, industrial developments, and other permanent structures, and the demands of his clients led the team to improve their quality and the efficiency of their systems.
Soon they were able to expand their offerings to include retail establishments, specializing in franchises, because of the economies of scale. This is where they further refined their strategies about repetition of design, using the manufacturing process, and dealing with a large volume of work. It was after their success in the retail market that they set their eyes on hospitality, which they define as hotels, rental apartments, holiday residences, senior living, and student living. The key feature in all these projects being the repetition of design.
The Modularis Board, from left to right: Marcelo Doria (board member), Eric Lesbre (founder and chairman), Frederico Azevedo (board member), Andre Reche (COO), Paulo Salvador (CEO).
A New Addition to the Team
To meet their new goal, Lesbre’s business associate, Frederico Azevedo, came to Modularis in 2020 through a mutual friend. He brings over 20 years of real estate experience, including a long track record as a residential developer in Sao Paulo, and is working to develop the residential/hospitality side of the business. Together they are targeting developers who are building BTR (build to rent) units. “Because those kinds of developments benefit the most from speed,” said Azevedo. “The faster we can deliver the building, the better the project returns.” They also hope to educate their customers about the improved quality, shorter lead time, assertive costs, and reduced environmental impact.
With this newest project, Modularis will be drawing on their years of lessons learned in the commercial market to increase the complexity of their units and improve their manufacturing efficiency. With their European background, Lesbre says, “we have a lot of industrial background in manufacturing, automation, and process management. And so, we are cross fertilizing our business with this approach.” In addition, they will be opening a new manufacturing facility in ITUPEVA, about 60 kilometers (37 miles) north of Sao Paulo. The new facility will provide services for the company’s flagship residential project.
Educating Their Clients
But the road hasn’t always been easy. Like many companies in the modular construction industry, they have struggled to change the mindset of their customers. Lesbre calls their efforts “evangelization,” bringing the message of the benefits of modular construction to an area that hadn’t heard of it before. Luckily, their customers were listening, and their success spoke to others. Lesbre and his team are hoping to do the same for the residential market in Brazil.
The new development, located in a posh neighborhood in Sao Paulo, will have 75 living units, which will come in one of three sizes. Studios will be 23 square meters (247 square feet) and will be comprised of one module. One-bedroom apartments (35 square meters, 377 square feet) and two-bedroom units (48 square meters, 517 square feet) will each be comprised of two modules. The lower commercial floor, elevator shaft, and staircase will be concrete, with all the living units being modular. A digital twin of the building will be completed before the actual construction, allowing Modularis to identify and correct all possible issues before breaking ground.
The logistics of constructing a large modular building in the middle of the heart of a city will be a challenge. In fact, the modules will have to be delivered at night and installed during the day due to traffic restrictions. The new factory will be close by, with easy access to highways, so getting there won’t be the difficulty. Even so, the team isn’t new to logistical challenges. Brazil is 86% of the size of the US, which means that projects can be spread out. However, their highway system isn’t as developed as the one in the US. They’ve had to haul modules 3,000 kilometers (1,864 miles) into the Amazon Rainforest for a large corporate client over roads that were less than ideal.
Luckily, the modules have been sized and designed to meet the road conditions they’ll meet during their trip. The largest modules are 4 meters (13 feet) wide and 13 meters (42 feet) long and weigh about 18 tons. The living unit modules run 3.4 meters (11 feet) wide and 8 meters (26 feet) long and weigh about 12 tons.
Lesbre says that the building codes in Brazil are favorable for modular construction. This has helped improve their selling point, as there aren’t the restrictions like many face in the US.
A Helping Hand
The future is looking bright for Modularis, as they recently announced the receipt of a large investment from ArcelorMittal, a worldwide leader in steel manufacturing. The funds will be also used for the new factory, which will ensure steady growth for the foreseeable future. Lesbre sees it as a game changer for them, “giving more credibility to our solution in the market, which is already ready to move forward.” In addition, the partnership will bring the steel and modular construction industries together, allowing them to offer unique solutions not provided by other companies.
Both Lesbre and Azevedo look forward to continuing to expand their market, improve their processes, and take advantage of technology to improve their performance.
About the Author: Dawn Killough is a freelance construction writer with over 25 years of experience working with construction companies, subcontractors and general contractors. Her published work can be found at dkilloughwriter.com.
More from Modular Advantage
How Rebel Concept Harnesses AI as a Design Tool to Improve the DFMA Process
“The complexity of projects and the size of project are so large, and the technology is so complicated that AI would do it so much faster than we are,” says Kris Droszcz, CEO at Rebel Concept. “Everybody’s struggling to control the manufacturing processes according to the design. And I think that’s what AI will do.”
One Answer from AI Can Provide Innumerable Opportunities, says Stack Modular’s Jim Dunn
The Stack AI Engine is not fully functional yet, but it offers an unlimited number of productivity benefits. Currently, the company is using AI for cost estimates, most recently for a project out in California.
GrayWolf: Building the Future of Modular Data Centers to Power the AI Revolution
The growth of artificial intelligence (AI) and cloud-based applications has created an urgent need for data centers capable of managing massive amounts of data. As businesses across industries increasingly rely on digital infrastructure to power their AI tools, the demand for data centers has skyrocketed.
Artificial Intelligence: Yes, it is a Construction Game-Changer
Much like other sectors of the economy, AI is reshaping construction, revolutionizing how projects are planned and executed across the country. While it is obvious that AI cannot do certain things by itself, like laying bricks, paving roads, or shingling roofs, its impact stands to be both massive and positive.
The Potential and Possibilities of AI for Offsite
AI is everywhere. Many industries have incorporated AI into business as usual with new organizational structures and new dependencies to be more efficient and to automate repetitive tasks. Offsite construction will not be immune to AI’s ubiquity. The technology offers unique benefits to the offsite building process.
Moving from AI Hype to an AI Advantage
Learning about AI will help you see past the overinflated hype and identify the opportunities specific to your own business. Learning about AI is like peeling an onion – each layer reveals something new, and occasionally it might make your eyes water. But in the end, you’ll have all the ingredients you need to cook up some real innovation in your organization.
The Blueprint for Smart and Ethical AI Integration in Your Business
The journey toward smart and ethical AI integration involves crafting a strategic vision that aligns AI’s transformative potential with your organizational goals. True success with AI is measured by its capacity to enhance human capabilities, foster sustainable growth, and generate value for all stakeholders while actively avoiding ethical pitfalls and harmful risks.
Five Factors for Success When Shifting Your Business to Modular
As labor, competitive and cost factors push more contractors and developers to embrace the opportunity to go modular as a first choice and not a last resort, it’s become clear that adopting this new model requires more than just a willingness to make it happen. Here are five factors to consider as your company moves to a modular construction model:
UniCool-Edge: Optimized Cooling Solutions for Modular and Edge Data Centers
In an industry where efficiency, scalability, and security are crucial, the UniCool-Edge™ system is a revolutionary solution for modular data center manufacturers. By offering external mounting for maximum space utilization, energy-efficient cooling, and pre-commissioned reliability, UniCool-Edge helps manufacturers stay ahead in the rapidly evolving AI-driven data center market. As edge data centers continue to expand, solutions like UniCool-Edge will play a vital role in supporting the next generation of modular data centers and their data center infrastructure.
Building Skills in a Virtual World: Immersive Training for the Modern Workforce
As both the hardware and software for developing and deploying XR applications continue to become more affordable, the investment in this technology as a training tool is increasingly appealing. XR also offers several other benefits, including performing potentially hazardous tasks in a safe environment and acquiring new skills without the immediate need for physical materials.