March 18, 2025 • 21 mins
Discover how modular construction is primed to reshape Portugal's housing landscape. Diogo Rutkowski from Bond Housing Systems explores the urgent challenges facing Portugal, including a shortage of construction workers and an overwhelming number of homes with poor energy efficiency. Diogo highlights how modular construction can create vibrant, inclusive communities, offering faster, more efficient building processes that promise to redefine the future of housing in Portugal.
Diogo also unpacks the advantages of wooden and steel modular structures that promise eco-friendliness, strength, and cost stability. He explains how these sustainable solutions can address the housing shortage with rapid delivery and environmental benefits.
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Hello and welcome to Inside Modular, the podcast of
commercial modular constructionbrought to you by the Modular
Building Institute.
Welcome everyone.
My name is John McMullen.
I'm the marketing director hereat MBI.
Today, I'm joined by DiogoRoscofsky, head of business
development at Portugal-basedBond Housing Systems.
Diogo is here to talk about thestate of housing in Portugal
(00:24):
and how his company plans tomake a difference using modular
construction.
Diogo, welcome, hi, john.
How are you?
I'm very well.
How are you Well, good?
Well, dive right in.
Tell me about yourself, diogo.
What's your background and howdid Bond Housing Systems come to
be?
Speaker 2 (00:41):
Sure.
So I'm Diogo Rutkowski.
I'm 30 years old, I'm marriedwith one little daughter.
As you can probably tell by myname, I'm half Portuguese, half
Polish.
Personally, I love traveling,so I've done more than 70
countries.
I love cinema almost a thousandratings on IMDb, I'm a huge fan
(01:02):
and, finally, I'm a music lover, so a records collector.
I'm passionate aboutentrepreneurship and that is one
of the reasons that I've joinedthis challenge.
On a work-life topic, I got adegree in economics and a master
in international management, somy background is very different
(01:22):
from what I'm doing now.
I got over seven yearsexperience in marketing strategy
, innovation and businessdevelopment, particularly in
high growth segments andchannels.
I've worked in Unilever, benJerry's and then on.
I've always been passionateabout creating a better future
for consumers and planets, andthat's why I've accepted this
(01:43):
challenge in Bond Systems.
Also because I like change and Iwanted to try a new category.
I've been in consumer goods, asyou can tell, for a long time
and I wanted to explore adifferent thing as well,
following this purpose on justdoing better for consumers and
for the planet, and so BondSystems had a purpose that was
(02:03):
aligned with what I was lookingfor, and they were looking for
someone that had the strategicalmindset that not only well, it
could be from the constructionindustry, but ideally the more
kind of strategical backgroundsthat could work together with
more technical people to reallyrevolutionize the construction
industry in Portugal.
And so, yeah, this is who I amand why I joined Bond Systems.
(02:29):
It's incredible to understandhow a different background can
really help these type ofbusinesses.
Speaker 1 (02:35):
Well, it is quite a background, and I love the fact
that you're so into films.
I'm going to have to find someof your ratings on IMDb.
I think that's awesome.
I'm a film lover myself.
How does, how does Bond operate?
What's the company's main goal?
Speaker 2 (02:51):
So, if we start with the sector, it's a
Portugal-based companyaddressing kind of social,
economic and environmentalissues in construction.
We are dedicated to deliverend-to-end residential projects
that could leverage modularconstruction technology into the
traditional technology,providing a faster, more
(03:11):
efficient and high qualitybuildings that can still meet
the European standards.
So we are not producersourselves, but we do integrate
modules produced by differentsuppliers across the world.
And what makes us stand outmore it's actually our
commitment I was mentioningbefore Our name.
Bond was created to symbolizeour purpose, which is creating
(03:35):
this kind of meaningfulconnections between individuals
and the urban spaces that wedesign, fostering this kind of
vibrant and inclusivecommunities.
So we believe that usingfactory produced components, we
can really achieve greatprecision, reducing waste,
accelerating timelines.
Achieve great precision,reducing waste, accelerating
(03:57):
timelines, so we can reallychange this kind of industry
that has been stuck for a littlewhile and bring a more
sustainable and fast alternative.
Speaker 1 (04:04):
How would you describe the current state of
housing in Portugal?
What specific challenges needto be addressed to improve the
housing market there?
Speaker 2 (04:14):
Well, that's a really good question, because
everywhere you read or like, ifyou open a magazine, if you
watch the news on TV, we alwaystalk about the housing crisis.
It's a hot topic in Portugaland the issue in here and the
challenge is that we arereaching critical levels.
More than 136,000 homes areneeded in Portugal urgently and
(04:39):
that's because most of theplaces are overcrowded.
A small portion is because ofpeople living in shacks or
improvised housings, but the bigissue here is overcrowding
places and this is due to threemain reasons.
The first one is the averageselling price of a house has
increased by more than 80% inthe last decade.
So if you compare it to theEuropean Union, the income
(05:03):
growth has been quite in linewith Portugal and the European
Union around 36%, but thehousing price in Portugal has
been, as I told, around 80%, butin Europe an increase of 40%.
So that's kind of a mismatchbetween Portugal and kind of you
understand the bigger issuewhich is in Portugal versus the
other markets.
(05:23):
The second bigger issue hereand which causes this kind of
critical levels in housingshortage, is that the number of
dwellings that were produced aredecreasing a lot.
So less than 80% versus the2000.
So around 2000, you could seeper year being built like
(05:44):
130,000 dwellings, but then in2015, you could see that the
number of dwellings that werebuilt were below the 10,000.
So there's a huge mismatchbetween supply and demand.
And finally, the biggest issuehere as well, is the shortage of
construction workers.
(06:05):
So there is a shortage of90,000.
And with the new airport beingbuilt in Lisbon, we will need
15,000 more workers.
That's the expectation, and ifyou look at wages and
construction costs, it's justlike increasing.
So, um, yeah, there's a bigchallenge in in housing.
This is only the market side.
(06:26):
We can look at environmental andsocial issues as well, right?
So if we look environmentally inportugal and if we look
globally, 37% of globalemissions are due to the
construction sector and inPortugal, specifically, if you
look at the energy efficiency,around 90% of homes in Portugal
have low energy efficiency,which in Portugal means C, e, d
(06:48):
and F levels, and in Portugal,actually 50% of homes were built
before 1980s, so houses inPortugal are quite old and for
the environment is quitesignificant impact.
If you look at the social landsas well, there are very poor
house conditions in Portugal, so20% of the households in
(07:11):
Portugal are not able to keeptheir homes warm.
Households in Portugal are notable to keep their homes warm.
Around 30% of homes in Portugalhave leaks or molds, to a new
EU average of 15%, and over 1million people in Portugal feel
isolated.
So the context is quite complex.
It's a kind of connectionbetween the market issue, the
(07:31):
environmental issue and, as well, the social issue, so it's a
multi-layered housing crisiswhich requires an urgent
innovative and collaborativesolution.
We are confident that BondSystems can really offer the
right solution for this andreally accelerate the production
of these homes.
Speaker 1 (07:49):
That's a complex web of challenges.
To be sure, what opportunitiesare you seeing in Portugal amid
all of these challenges?
Speaker 2 (07:59):
We are in an interesting phase where the
government has changed and hasset loads of measures to address
the ongoing housing crisis.
So they launched an initiativecalled Building Portugal and
they set 30 measures for a newhousing strategy as from May
2024.
So they have a couple ofmeasures and some of them really
(08:20):
encourage supply, reducingbureaucracy and urbanistic
administrative simplification.
Some of them really promoteyoung housing, so exemption from
property taxes and other taxes.
They also try to facilitatebank financing, and some of
these measures were alreadyimplemented.
(08:41):
There are others to beimplemented, like promoting
public housing.
We are talking about the PRR,the plan of recovery and
resilience, and what they wantis to unlock funds to unlock
25,000 houses and, as well,enhance financing to develop
additional houses in Portugal.
(09:02):
So we are in an environmentthat is really pushing for more
construction and more people tobuy houses, to make it more
affordable.
I do believe that theseopportunities create an
opportunity to collaborate theprivate sector with the
government and really developingthis affordable and sustainable
housing kind of solutions.
(09:24):
And we do believe that Bond isreally in line with this,
because not only make sure thatconstruction can be faster, but
as well it really answers thesocial environmental issues
building Portugal in a moreeco-friendly and sustainable way
.
Speaker 1 (09:40):
Given the landscape in Portugal now, with all of
these challenges and what thegovernment's trying to do to
increase these resources tocreate more housing, how does
bond systems fit in?
What are you guys doing andwhat's your plan systems fit in?
What are you?
Speaker 2 (09:55):
guys doing and what's your plan?
So if we start with our purpose, that's exactly what we want to
really connect the kind ofmarket issue with the social and
environmental kind of problemsas well.
What our company wants is tooffer a fully integrated 10 key
solution that is tailored tothis kind of issues on a way
(10:16):
that is efficient butsustainable as well.
We combine expertise in marketanalysis, urban planning, module
construction and energysolutions that are sustainable
for these projects.
That meets the needs of bothcommunities and investors.
So our approach starts with anin-depth market research and
analysis for each specificlocation and clients to make
(10:39):
sure that the initial layoutsthat we develop answer these
needs.
We really want to ensure thatthe solutions that we provide
think with urban planning fromtheir initial kind of layouts.
So we make sure that thecommunity is involved.
We then move on to the off-siteproduction phase, which is made
(11:03):
on a factory with one of ourinternational suppliers, and
they do produce in a controlledenvironment, all with very good
quality sets, which reallyensures the construction time to
be reduced.
So while the soil is beingprepared in Portugal, we start
producing our modules, makingsure that we can reduce the
(11:26):
construction time overall.
And finally, then there's thelogistics parts, where our
modules are kind of transportedby boat to Portugal and then
transported by land to thespecific place we want to build,
and they are really transportedsecurely and the assembly is
(11:50):
done by a local team togetherwith our supplier.
It's a really efficient kind ofbusiness model where we can
really leverage on everyone'sexpertise, from our suppliers to
develop something with qualityfrom the factory but as well
with the local civilconstruction companies that can
(12:12):
work on the soil.
We stand out by partnering witha couple of industry leaders.
So UniHouse is one of ourpartners.
It's a Polish supplier thatproduces in wood.
We work as well together withWorks, which is one of the real
estate leading companies inPortugal, which facilitates a
(12:32):
couple of contacts and expertisein real estate.
We partner with Atomu CapitalPartners, which provides not
only the kind of energysolutions from the very
beginning making sure that ourbuildings can achieve the
certification of BREEAM and LEED, for example but as well
integrates the solar panels ifwe need.
We as well have a partner whichis DUNN it's the name of the
(12:58):
company that ensures the kind ofdesign to build project and
help us to to to kind of managethe project from end to end.
And finally, you are one of themain partners, the Module
Building Institute, which helpus finding our perfect network
(13:18):
from supply to any otherpartnerships.
So, yeah, we do believe thatleveraging this kind of
partnerships.
As I mentioned, we are anintegration business.
We believe that integrating allof this partners, we can really
help achieving a good solutionthat it's speedy and with
quality.
Speaker 1 (13:38):
So tell me about the projects that you're currently
working on.
Are there any details you canshare about those?
Speaker 2 (13:44):
Sure.
So we are working on kind offour different sectors, I would
say.
The first one is residentialapartments, so multifamily
projects.
We are as well developingprojects for student
accommodations in Portugal.
Senior living is the third areaand finally, the workers'
(14:05):
housing.
And it's quite interesting tounderstand that although we have
one product, the type ofsolution is very different
according to the project.
So we are on project phase ineach of them, although our
partners, for example UniHouse,had loads of expertise already
in building tall buildingsacross the globe.
(14:27):
So, yeah, these are the fourareas that we provide solutions
to.
Speaker 1 (14:33):
I heard you mention one of your partners specialized
in wood frame modular.
I believe you said what are thekey advantages when it comes to
the housing projects that youguys are working on.
What are the key advantages forwooden modular structures?
Speaker 2 (14:49):
That's a really good question.
So first of all, I think isaround sustainability and
versatility.
So wood is a renewable andeco-friendly material.
It balances strength withadaptability for diverse
applications and is quite lightweighted yet durable for
efficient construction processes.
(15:10):
We can talk about energyefficiency.
So wood has excellent thermalisolation and keeps indoor
temperatures stable.
And keeps indoor temperaturesstable it can reduce operational
costs during or after beingbuilt.
Obviously, and I think thethird biggest advantage of wood
(15:34):
is comfort and performance.
So the kind of warmer livingenvironments, the excellent
soundproofing that it brings,the kind of good performance in
terms of seismic conditions toadapt in different terrains, it
kind of enhanced the overallliving.
So I think when you are withina wood apartment you can really
smell the difference.
(15:55):
That's the technical term Iwould say.
Speaker 1 (15:59):
How about steel modular buildings?
Are you guys building those aswell with your partners, and if
so, what are the advantages ofthose?
Speaker 2 (16:05):
Sure, yeah, we do have a couple of partners that
works with steel.
I think one of the adventuresis the strength and versatility,
so it has quite a strength toweight ratio quite a high one to
robust structures.
It's easier to transport.
Most of this.
(16:26):
Suppliers produce in 2D insteadof 3D, which is the wooden
projects, so a couple of oursuppliers in steel are able to
produce in 2D, which means thatfor transportation is easier and
then we just assemble in theland that we operate.
I think as well it's aboutsustainability.
(16:49):
So we know that wood issustainable, but steel as well
can be 100% recyclable and theprocess itself in the factory is
quite streamlined, so it'squite efficient in terms of
waste management.
And finally, I think, it'sdurability and safety.
Maybe it's highly resistant tofire, it's non-combustible and,
(17:14):
yeah, it's quite resistant toseismic forces as well.
So both of the options wood andsteel are quite good, I'd quite
good options for any type ofconstruction.
It just depends a bit on thetype of project.
So some of them are more costefficient for some of the
projects.
But we should really take intoconsideration both options for
(17:39):
any type of project andunderstand what's the most
viable one for a specific layout.
Speaker 1 (17:46):
This has been great, Gio.
I got one more question for you.
Why is modular construction soimportant in addressing the
housing shortage in Portugalright now, and not only right
now, but in the years to?
Speaker 2 (17:57):
come.
I think modular construction isthe future.
I think it's critical toaddress Portugal's current
housing crisis.
It provides a more efficient,more sustainable.
It's a high quality solutionthat directly responds to the
issues that I've mentionedaround supply, affordability and
(18:18):
environmental concerns.
We are talking about a solutionthat has a higher speed of
delivery, so modularconstruction can reduce building
times by 50%.
It's quite high and it canreally contribute to the
acceleration of return oninvestment.
When we're talking about morein an investor point of view, it
(18:38):
is well.
If we think about the workers,it enhances the kind of on-site
safety because there's lesspeople needed in the local where
we are building and, in termsof disrupting the urban areas,
it's more friendly because wedon't need to close so much
roads, for example.
(18:58):
I think there's a second kindof big bucket, which is the cost
stability, because it's astandardized process that uses
pre-order materials in factory,it really minimizes the
variability of cost materialsand it's less dependent on labor
(19:19):
, where I mentioned that inPortugal is quite an important
issue.
Labor costs in Portugal inconstruction have increased by
8%, so it's an answer to that.
Construction have increased by8%, so it's an answer to that.
And finally, on thesustainability point of view,
modular construction isinherently more eco-friendly.
It significantly reduces wasteand the use of recycled
(19:41):
materials can be higher.
And then we know thattraditional construction can use
energy efficient solutions.
But inherently, modularconstruction has energy
efficiency in its heart.
It's all done by precision inthe factory and the materials
that they use, for example wood,can be very, very efficient.
So I think there is still workto be done in Portugal on
(20:06):
demystifying the kind of modularconstruction People sometimes
do think that it's of lessquality.
It's not.
It can be as good astraditional construction or even
better.
It complies with all Europeancertifications.
It can ensure seismic safety,fire protection, excellent
(20:27):
thermal and acoustic performance.
So we are talking about allchecks in here, and the
materials we use are as durable.
We can think as well about somesolutions that can be for
temporary workers that you wantto just take off and change
location, for example.
But if you want to think on adurable project from the
(20:48):
beginning, you can do it bymodular, so it just combines
both functionality andsustainability.
Speaker 1 (20:58):
Well, diogo, again I really appreciate your time.
It's been a great conversation.
Before we go, I'd be remiss.
I know you mentioned partneringwith MBI earlier in the
conversation.
We're hosting two events, twobig events around the world.
We'll be in Vegas in April andthen, not too terribly far from
Portugal, later in the fall,we'll be at World of Modular,
Europe Again.
I hope I get to meet you inperson at one of those events.
Speaker 2 (21:21):
Thank you, John, for the opportunity and see you in
the event no-transcript.
Hello and welcome to Inside Modular, the podcast of
commercial modular constructionbrought to you by the Modular
Building Institute.
Welcome everyone.
My name is John McMullen.
I'm the marketing director hereat MBI.
Today, I'm joined by DiogoRoscofsky, head of business
development at Portugal-basedBond Housing Systems.
Diogo is here to talk about thestate of housing in Portugal
(00:24):
and how his company plans tomake a difference using modular
construction.
Diogo, welcome, hi, john.
How are you?
I'm very well.
How are you Well, good?
Well, dive right in.
Tell me about yourself, diogo.
What's your background and howdid Bond Housing Systems come to
be?
Speaker 2 (00:41):
Sure.
So I'm Diogo Rutkowski.
I'm 30 years old, I'm marriedwith one little daughter.
As you can probably tell by myname, I'm half Portuguese, half
Polish.
Personally, I love traveling,so I've done more than 70
countries.
I love cinema almost a thousandratings on IMDb, I'm a huge fan
(01:02):
and, finally, I'm a music lover, so a records collector.
I'm passionate aboutentrepreneurship and that is one
of the reasons that I've joinedthis challenge.
On a work-life topic, I got adegree in economics and a master
in international management, somy background is very different
(01:22):
from what I'm doing now.
I got over seven yearsexperience in marketing strategy
, innovation and businessdevelopment, particularly in
high growth segments andchannels.
I've worked in Unilever, benJerry's and then on.
I've always been passionateabout creating a better future
for consumers and planets, andthat's why I've accepted this
(01:43):
challenge in Bond Systems.
Also because I like change and Iwanted to try a new category.
I've been in consumer goods, asyou can tell, for a long time
and I wanted to explore adifferent thing as well,
following this purpose on justdoing better for consumers and
for the planet, and so BondSystems had a purpose that was
(02:03):
aligned with what I was lookingfor, and they were looking for
someone that had the strategicalmindset that not only well, it
could be from the constructionindustry, but ideally the more
kind of strategical backgroundsthat could work together with
more technical people to reallyrevolutionize the construction
industry in Portugal.
And so, yeah, this is who I amand why I joined Bond Systems.
(02:29):
It's incredible to understandhow a different background can
really help these type ofbusinesses.
Speaker 1 (02:35):
Well, it is quite a background, and I love the fact
that you're so into films.
I'm going to have to find someof your ratings on IMDb.
I think that's awesome.
I'm a film lover myself.
How does, how does Bond operate?
What's the company's main goal?
Speaker 2 (02:51):
So, if we start with the sector, it's a
Portugal-based companyaddressing kind of social,
economic and environmentalissues in construction.
We are dedicated to deliverend-to-end residential projects
that could leverage modularconstruction technology into the
traditional technology,providing a faster, more
(03:11):
efficient and high qualitybuildings that can still meet
the European standards.
So we are not producersourselves, but we do integrate
modules produced by differentsuppliers across the world.
And what makes us stand outmore it's actually our
commitment I was mentioningbefore Our name.
Bond was created to symbolizeour purpose, which is creating
(03:35):
this kind of meaningfulconnections between individuals
and the urban spaces that wedesign, fostering this kind of
vibrant and inclusivecommunities.
So we believe that usingfactory produced components, we
can really achieve greatprecision, reducing waste,
accelerating timelines.
Achieve great precision,reducing waste, accelerating
(03:57):
timelines, so we can reallychange this kind of industry
that has been stuck for a littlewhile and bring a more
sustainable and fast alternative.
Speaker 1 (04:04):
How would you describe the current state of
housing in Portugal?
What specific challenges needto be addressed to improve the
housing market there?
Speaker 2 (04:14):
Well, that's a really good question, because
everywhere you read or like, ifyou open a magazine, if you
watch the news on TV, we alwaystalk about the housing crisis.
It's a hot topic in Portugaland the issue in here and the
challenge is that we arereaching critical levels.
More than 136,000 homes areneeded in Portugal urgently and
(04:39):
that's because most of theplaces are overcrowded.
A small portion is because ofpeople living in shacks or
improvised housings, but the bigissue here is overcrowding
places and this is due to threemain reasons.
The first one is the averageselling price of a house has
increased by more than 80% inthe last decade.
So if you compare it to theEuropean Union, the income
(05:03):
growth has been quite in linewith Portugal and the European
Union around 36%, but thehousing price in Portugal has
been, as I told, around 80%, butin Europe an increase of 40%.
So that's kind of a mismatchbetween Portugal and kind of you
understand the bigger issuewhich is in Portugal versus the
other markets.
(05:23):
The second bigger issue hereand which causes this kind of
critical levels in housingshortage, is that the number of
dwellings that were produced aredecreasing a lot.
So less than 80% versus the2000.
So around 2000, you could seeper year being built like
(05:44):
130,000 dwellings, but then in2015, you could see that the
number of dwellings that werebuilt were below the 10,000.
So there's a huge mismatchbetween supply and demand.
And finally, the biggest issuehere as well, is the shortage of
construction workers.
(06:05):
So there is a shortage of90,000.
And with the new airport beingbuilt in Lisbon, we will need
15,000 more workers.
That's the expectation, and ifyou look at wages and
construction costs, it's justlike increasing.
So, um, yeah, there's a bigchallenge in in housing.
This is only the market side.
(06:26):
We can look at environmental andsocial issues as well, right?
So if we look environmentally inportugal and if we look
globally, 37% of globalemissions are due to the
construction sector and inPortugal, specifically, if you
look at the energy efficiency,around 90% of homes in Portugal
have low energy efficiency,which in Portugal means C, e, d
(06:48):
and F levels, and in Portugal,actually 50% of homes were built
before 1980s, so houses inPortugal are quite old and for
the environment is quitesignificant impact.
If you look at the social landsas well, there are very poor
house conditions in Portugal, so20% of the households in
(07:11):
Portugal are not able to keeptheir homes warm.
Households in Portugal are notable to keep their homes warm.
Around 30% of homes in Portugalhave leaks or molds, to a new
EU average of 15%, and over 1million people in Portugal feel
isolated.
So the context is quite complex.
It's a kind of connectionbetween the market issue, the
(07:31):
environmental issue and, as well, the social issue, so it's a
multi-layered housing crisiswhich requires an urgent
innovative and collaborativesolution.
We are confident that BondSystems can really offer the
right solution for this andreally accelerate the production
of these homes.
Speaker 1 (07:49):
That's a complex web of challenges.
To be sure, what opportunitiesare you seeing in Portugal amid
all of these challenges?
Speaker 2 (07:59):
We are in an interesting phase where the
government has changed and hasset loads of measures to address
the ongoing housing crisis.
So they launched an initiativecalled Building Portugal and
they set 30 measures for a newhousing strategy as from May
2024.
So they have a couple ofmeasures and some of them really
(08:20):
encourage supply, reducingbureaucracy and urbanistic
administrative simplification.
Some of them really promoteyoung housing, so exemption from
property taxes and other taxes.
They also try to facilitatebank financing, and some of
these measures were alreadyimplemented.
(08:41):
There are others to beimplemented, like promoting
public housing.
We are talking about the PRR,the plan of recovery and
resilience, and what they wantis to unlock funds to unlock
25,000 houses and, as well,enhance financing to develop
additional houses in Portugal.
(09:02):
So we are in an environmentthat is really pushing for more
construction and more people tobuy houses, to make it more
affordable.
I do believe that theseopportunities create an
opportunity to collaborate theprivate sector with the
government and really developingthis affordable and sustainable
housing kind of solutions.
(09:24):
And we do believe that Bond isreally in line with this,
because not only make sure thatconstruction can be faster, but
as well it really answers thesocial environmental issues
building Portugal in a moreeco-friendly and sustainable way
.
Speaker 1 (09:40):
Given the landscape in Portugal now, with all of
these challenges and what thegovernment's trying to do to
increase these resources tocreate more housing, how does
bond systems fit in?
What are you guys doing andwhat's your plan systems fit in?
What are you?
Speaker 2 (09:55):
guys doing and what's your plan?
So if we start with our purpose, that's exactly what we want to
really connect the kind ofmarket issue with the social and
environmental kind of problemsas well.
What our company wants is tooffer a fully integrated 10 key
solution that is tailored tothis kind of issues on a way
(10:16):
that is efficient butsustainable as well.
We combine expertise in marketanalysis, urban planning, module
construction and energysolutions that are sustainable
for these projects.
That meets the needs of bothcommunities and investors.
So our approach starts with anin-depth market research and
analysis for each specificlocation and clients to make
(10:39):
sure that the initial layoutsthat we develop answer these
needs.
We really want to ensure thatthe solutions that we provide
think with urban planning fromtheir initial kind of layouts.
So we make sure that thecommunity is involved.
We then move on to the off-siteproduction phase, which is made
(11:03):
on a factory with one of ourinternational suppliers, and
they do produce in a controlledenvironment, all with very good
quality sets, which reallyensures the construction time to
be reduced.
So while the soil is beingprepared in Portugal, we start
producing our modules, makingsure that we can reduce the
(11:26):
construction time overall.
And finally, then there's thelogistics parts, where our
modules are kind of transportedby boat to Portugal and then
transported by land to thespecific place we want to build,
and they are really transportedsecurely and the assembly is
(11:50):
done by a local team togetherwith our supplier.
It's a really efficient kind ofbusiness model where we can
really leverage on everyone'sexpertise, from our suppliers to
develop something with qualityfrom the factory but as well
with the local civilconstruction companies that can
(12:12):
work on the soil.
We stand out by partnering witha couple of industry leaders.
So UniHouse is one of ourpartners.
It's a Polish supplier thatproduces in wood.
We work as well together withWorks, which is one of the real
estate leading companies inPortugal, which facilitates a
(12:32):
couple of contacts and expertisein real estate.
We partner with Atomu CapitalPartners, which provides not
only the kind of energysolutions from the very
beginning making sure that ourbuildings can achieve the
certification of BREEAM and LEED, for example but as well
integrates the solar panels ifwe need.
We as well have a partner whichis DUNN it's the name of the
(12:58):
company that ensures the kind ofdesign to build project and
help us to to to kind of managethe project from end to end.
And finally, you are one of themain partners, the Module
Building Institute, which helpus finding our perfect network
(13:18):
from supply to any otherpartnerships.
So, yeah, we do believe thatleveraging this kind of
partnerships.
As I mentioned, we are anintegration business.
We believe that integrating allof this partners, we can really
help achieving a good solutionthat it's speedy and with
quality.
Speaker 1 (13:38):
So tell me about the projects that you're currently
working on.
Are there any details you canshare about those?
Speaker 2 (13:44):
Sure.
So we are working on kind offour different sectors, I would
say.
The first one is residentialapartments, so multifamily
projects.
We are as well developingprojects for student
accommodations in Portugal.
Senior living is the third areaand finally, the workers'
(14:05):
housing.
And it's quite interesting tounderstand that although we have
one product, the type ofsolution is very different
according to the project.
So we are on project phase ineach of them, although our
partners, for example UniHouse,had loads of expertise already
in building tall buildingsacross the globe.
(14:27):
So, yeah, these are the fourareas that we provide solutions
to.
Speaker 1 (14:33):
I heard you mention one of your partners specialized
in wood frame modular.
I believe you said what are thekey advantages when it comes to
the housing projects that youguys are working on.
What are the key advantages forwooden modular structures?
Speaker 2 (14:49):
That's a really good question.
So first of all, I think isaround sustainability and
versatility.
So wood is a renewable andeco-friendly material.
It balances strength withadaptability for diverse
applications and is quite lightweighted yet durable for
efficient construction processes.
(15:10):
We can talk about energyefficiency.
So wood has excellent thermalisolation and keeps indoor
temperatures stable.
And keeps indoor temperaturesstable it can reduce operational
costs during or after beingbuilt.
Obviously, and I think thethird biggest advantage of wood
(15:34):
is comfort and performance.
So the kind of warmer livingenvironments, the excellent
soundproofing that it brings,the kind of good performance in
terms of seismic conditions toadapt in different terrains, it
kind of enhanced the overallliving.
So I think when you are withina wood apartment you can really
smell the difference.
(15:55):
That's the technical term Iwould say.
Speaker 1 (15:59):
How about steel modular buildings?
Are you guys building those aswell with your partners, and if
so, what are the advantages ofthose?
Speaker 2 (16:05):
Sure, yeah, we do have a couple of partners that
works with steel.
I think one of the adventuresis the strength and versatility,
so it has quite a strength toweight ratio quite a high one to
robust structures.
It's easier to transport.
Most of this.
(16:26):
Suppliers produce in 2D insteadof 3D, which is the wooden
projects, so a couple of oursuppliers in steel are able to
produce in 2D, which means thatfor transportation is easier and
then we just assemble in theland that we operate.
I think as well it's aboutsustainability.
(16:49):
So we know that wood issustainable, but steel as well
can be 100% recyclable and theprocess itself in the factory is
quite streamlined, so it'squite efficient in terms of
waste management.
And finally, I think, it'sdurability and safety.
Maybe it's highly resistant tofire, it's non-combustible and,
(17:14):
yeah, it's quite resistant toseismic forces as well.
So both of the options wood andsteel are quite good, I'd quite
good options for any type ofconstruction.
It just depends a bit on thetype of project.
So some of them are more costefficient for some of the
projects.
But we should really take intoconsideration both options for
(17:39):
any type of project andunderstand what's the most
viable one for a specific layout.
Speaker 1 (17:46):
This has been great, Gio.
I got one more question for you.
Why is modular construction soimportant in addressing the
housing shortage in Portugalright now, and not only right
now, but in the years to?
Speaker 2 (17:57):
come.
I think modular construction isthe future.
I think it's critical toaddress Portugal's current
housing crisis.
It provides a more efficient,more sustainable.
It's a high quality solutionthat directly responds to the
issues that I've mentionedaround supply, affordability and
(18:18):
environmental concerns.
We are talking about a solutionthat has a higher speed of
delivery, so modularconstruction can reduce building
times by 50%.
It's quite high and it canreally contribute to the
acceleration of return oninvestment.
When we're talking about morein an investor point of view, it
(18:38):
is well.
If we think about the workers,it enhances the kind of on-site
safety because there's lesspeople needed in the local where
we are building and, in termsof disrupting the urban areas,
it's more friendly because wedon't need to close so much
roads, for example.
(18:58):
I think there's a second kindof big bucket, which is the cost
stability, because it's astandardized process that uses
pre-order materials in factory,it really minimizes the
variability of cost materialsand it's less dependent on labor
(19:19):
, where I mentioned that inPortugal is quite an important
issue.
Labor costs in Portugal inconstruction have increased by
8%, so it's an answer to that.
Construction have increased by8%, so it's an answer to that.
And finally, on thesustainability point of view,
modular construction isinherently more eco-friendly.
It significantly reduces wasteand the use of recycled
(19:41):
materials can be higher.
And then we know thattraditional construction can use
energy efficient solutions.
But inherently, modularconstruction has energy
efficiency in its heart.
It's all done by precision inthe factory and the materials
that they use, for example wood,can be very, very efficient.
So I think there is still workto be done in Portugal on
(20:06):
demystifying the kind of modularconstruction People sometimes
do think that it's of lessquality.
It's not.
It can be as good astraditional construction or even
better.
It complies with all Europeancertifications.
It can ensure seismic safety,fire protection, excellent
(20:27):
thermal and acoustic performance.
So we are talking about allchecks in here, and the
materials we use are as durable.
We can think as well about somesolutions that can be for
temporary workers that you wantto just take off and change
location, for example.
But if you want to think on adurable project from the
(20:48):
beginning, you can do it bymodular, so it just combines
both functionality andsustainability.
Speaker 1 (20:58):
Well, diogo, again I really appreciate your time.
It's been a great conversation.
Before we go, I'd be remiss.
I know you mentioned partneringwith MBI earlier in the
conversation.
We're hosting two events, twobig events around the world.
We'll be in Vegas in April andthen, not too terribly far from
Portugal, later in the fall,we'll be at World of Modular,
Europe Again.
I hope I get to meet you inperson at one of those events.
Speaker 2 (21:21):
Thank you, John, for the opportunity and see you in
the event no-transcript.
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