John McMullen, PCM, marketing director at the Modular Building Institute, interviewed Kellen’s Alex van der Laan and James Hammersley about how modular construction could solve issues in the European construction sector
Europe’s construction sector is under growing pressure to deliver more housing, address persistent labour shortages, meet ambitious decarbonisation targets, and improve productivity. For the modular construction industry, these challenges present a major opportunity. They also highlight the need for coordinated representation in Brussels and a regulatory environment that allows modular companies to expand across European markets.
The Modular Building Institute has retained Kellen, a Brussels-based firm, to support its European government affairs and industry representation efforts. Alex van der Laan and James Hammersley of Kellen are working with MBI members to identify their most pressing concerns, communicate the industry’s value to European policymakers, and help shape policies that support modular construction.
European leaders are starting to recognise the role modular construction can play
According to van der Laan and Hammersley, European leaders are increasingly aware of the role modular construction can play.
“Modular construction is increasingly recognised as a solution to many of the challenges facing Europe’s construction sector,” they said. “It is referenced in several European policy initiatives, including the Affordable Housing Plan and the Renovation Wave, as a practical means of delivering construction projects more efficiently.”
This recognition is beginning to extend beyond European Union institutions. National governments are also considering modular approaches as part of their housing and building renovation strategies.
However, general support for modular construction does not automatically translate into policies that allow the industry to reach its full potential. MBI must continue raising awareness while advocating for rules that reflect the realities of off-site manufacturing in Europe.
Overcoming a fragmented market
Although Europe is often described as a single market, construction remains heavily influenced by national and local regulations. That fragmentation creates one of the most significant barriers for modular companies seeking to work across borders.
Different building standards and technical requirements can prevent a modular building designed for one country from being used in another without costly modifications. Permitting and certification processes also vary, while qualifications recognised in one jurisdiction may not be accepted elsewhere.
Transportation presents another challenge. Regulations governing oversized modules can differ considerably between countries, complicating delivery planning and increasing administrative burdens.
“Fragmentation remains one of the biggest barriers to the growth of modular construction across Europe,” van der Laan and Hammersley said. “The most visible challenge is the existence of different national building standards and requirements, meaning that a modular building designed for one Member State often cannot be placed on another market without significant modifications to comply with local rules.”
Recent EU initiatives, including the Construction Products Regulation and the Digital Product Passport, could improve harmonisation and transparency. Still, substantial obstacles remain before modular companies can take full advantage of the European Single Market.
Watching policies beyond construction
Modular companies must also pay attention to policies that do not specifically mention modular construction. Decisions related to sustainable investment, industrial competitiveness, raw materials, workforce development, and the circular economy can have major consequences for the industry.
One example is the EU Taxonomy, which classifies environmentally sustainable economic activities and helps direct financing toward green projects. Recognition of modular construction’s environmental advantages could make the sector more attractive to investors.
The forthcoming Circular Economy Act could also strengthen the business case for modular construction by supporting practices that reduce waste, reuse components, recover materials, and extend their useful lives.
“These broader policy files may not mention modular construction directly, but they can significantly influence the commercial and regulatory environment in which the sector operates,” van der Laan and Hammersley said.
The modular industry therefore needs to engage with a wider range of policy discussions. Waiting until legislation directly names modular construction may mean waiting too long to influence its development.
Turning member concerns into advocacy
Kellen’s work on behalf of MBI in Europe begins with gathering information from companies operating in different countries and market sectors. The MBI Europe Working Group will provide a dedicated forum for members to discuss how regulations, standards, and administrative requirements affect their businesses.
Early conversations have already identified three primary areas of focus: greater harmonisation through common European standards, lower administrative burdens for compliance and certification, and stronger recognition of modular construction as a solution to Europe’s housing, sustainability, productivity, and competitiveness challenges.
“In practical terms, Kellen’s role is to gather member insights, identify common challenges across markets, and translate those concerns into a coordinated advocacy strategy aimed at ensuring European legislation supports rather than hinders the sector’s development,” van der Laan and Hammersley said.
A coordinated strategy allows MBI to identify issues that affect multiple European members rather than focusing only on isolated national or company-specific concerns. It also gives the industry a stronger foundation for long-term engagement with policymakers.
The need for a collective voice
Individual companies can explain how regulations affect their operations, while national organisations can represent members within their own countries. Many of the industry’s largest challenges, however, require action at the European level.
Harmonising standards, reducing cross-border barriers, and improving the Single Market cannot realistically be accomplished by individual companies acting independently.
“These issues require a credible and recognised European-level industry voice that can engage consistently with policymakers across multiple legislative files and over long periods of time,” van der Laan and Hammersley said.
Through MBI, European companies gain an established platform, greater visibility, access to international expertise, and the ability to advocate collectively. That representation can help policymakers understand the industry before regulations are finalised, rather than forcing companies to react after new requirements are already in place.
Establishing modular construction as a European industry
The larger goal is to establish modular construction as a recognised European industry rather than simply an alternative method of delivering individual projects.
“The greatest opportunity is not simply to reposition modular construction, but to establish the sector as a recognised European industry in its own right,” van der Laan and Hammersley said.
Doing so will require the industry to clearly demonstrate its ability to deliver high-quality buildings faster, more sustainably, and with greater productivity. It must also explain the conditions needed for success, including harmonised rules, proportionate regulations, and formal recognition of off-site manufacturing.
Continuing the conversation in Amsterdam
Van der Laan and Hammersley will discuss these issues during their presentation, “MBI Europe: Turning European Policy into Industry Opportunity,” at the 2026 World of Modular Europe conference in Amsterdam, 12-14 October.
The session will examine the policies shaping Europe’s modular construction market, the advocacy priorities emerging from MBI’s work in Europe, and the importance of maintaining a strong industry presence in Brussels. Attendees will also learn how policy developments could affect their businesses and how they can become involved in MBI’s European advocacy efforts.
The presentation will be especially valuable for professionals working in executive leadership, corporate strategy, business development, public affairs, and market expansion. The conference will also allow companies to compare challenges, exchange best practices, and build relationships with peers from across Europe.
“Perhaps most importantly, the event creates opportunities for companies to identify common challenges, exchange best practices, and build the relationships that are essential for developing a stronger and more influential modular construction sector across Europe,” van der Laan and Hammersley said.
Europe’s housing, workforce, sustainability, and productivity challenges will not be solved through conventional construction alone. Modular construction can become an important part of the solution, but the industry must speak clearly and collectively about both its capabilities and its needs. MBI’s growing presence in Brussels represents an important step toward turning European policy into lasting industry opportunity.
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