In Labs And Life Sciences, Puzzle Pieces Coming Together For Modular Construction

Developers of lab and biomanufacturing space, tasked with meeting seemingly unending demand for more product built with refined specifications and top-line tech, are turning to a familiar method for cutting costs and build time: modular construction.

With high demand for labs and an extensive pipeline of projects across the country, developers are on the lookout for any advantage to speed up development. Modular construction has long been at the precipice of offering such a solution but has struggled to catch on for a raft of reasons.

But changing demand and more cautious development approaches are creating an opening for modular techniques and products to become a bigger part of biotech building. 

“Modular construction has become a larger part of the life science industry over the past few years,” Lendlease America General Manager of Life Science Construction Anthony Giuliano said. “We expect modular construction to continue to flourish as several of our clients have approached us requesting support.” 

There are signs that modular, while not yet offering a turnkey, industry-changing application, can fulfill some key niches in lab and biomanufacturing construction — better environmental performance, plus more flexibility and precision in manufacturing environments — as well as provide more freedom for developers trying to save costs during a difficult economic moment. 

Hines, for example, is using modular methods on its 270K SF Levit Green lab project in Houston and intends to incorporate the designs into more projects going forward.

More developers see modular’s potential for better energy performance, Elevate Research Properties Senior Vice President Matt Malone said. Modular walls and facades help reduce a building’s environmental footprint, which will become more advantageous as the requirements of New York City’s Local Law 97 and other similar emissions reduction regulations in other cities phase in.

“The tighter skin for modular-only projects benefits the interior laboratory environment, especially when you couple that with the perception lab spaces are energy hogs,” Malone said.

Prefabricated wall systems offer some unique advantages for life sciences, said James Levin, Perkins & Will’s director of process architecture and current good manufacturing process design.

They are slightly faster to construct, and though there is an upfront premium, the life cycle costs are significantly lower and they offer a higher-quality, more resilient finish. That is a big advantage for biomanufacturing sites, which require a higher degree of cleanliness and have a high lifetime operating cost that makes upfront investment more palatable. 

“This is an area where better finishes have become a real advantage,” he said. “It’s a big reason for the growth of modular. The product is just better now and continues to get better over time.”

Industry analyst BioPlan Associates predicted in 2021 that the industry would pivot to more modular construction, and some large-scale new facilities, including a Fujifilm Diosynth plant in the UK, will be built with modular clean rooms.

Massive facilities built and designed for complicated, unique manufacturing processes for cell and gene therapy and biologics can also utilize modular building blocks to create assembly line systems. With many biomanufacturing environments needing a 20-foot clear height, it is possible to stack and lay out modular units within the larger space. 

“It’s presenting a huge opportunity for not just landlords but tenants,” Malone said. “Your tenant base can be wider because you’re not committing to one thing when building out.” 

Finally, Levin noted that the ability of modular systems to be expanded upon later — a lab or facility can lay out five clean rooms or lab spaces today and build in the potential to quickly expand into five or 10 more such rooms later — is popular with clients in this uncertain economic climate. Developers appreciate the opportunity to expand when the market shifts and save money on construction costs upfront. 

“Developers are hedging a bit, saying they want 20 rooms but will start with 10,” he said.

In general, most of the modular construction happening in the U.S. is either prefabricated wall systems or so-called podular products, like factory-assembled clean rooms or labs. 

Lendlease’s Giuliano said he is seeing more examples of modular casework, utility panels, pre-engineered systems, pods and interior/exterior wall assemblies on life sciences projects. These flexible components can even ease the burden of potential material delays, he said.

Industry leaders have become more open to modular construction, according to a recent report from CRB Group, a life sciences consultancy. In a survey of 500 biotech leaders, many highlighted modular’s advantages when it came to consistency and regulatory compliance, as well as ease of automation of lab operations. 

Different manufacturers focused on clean rooms and mobile labs have said they are seeing increased business and interest. Certek, which manufactures modular laboratories in North Carolina, is seeing more inquiries and business from clients like the National Institutes of Health and numerous colleges and universities looking to quickly expand their laboratory facilities, President Daniel Evans said.

Gil-Bar, which began 10 years ago manufacturing modular wall systems for hospitals and healthcare space, has expanded into life sciences. The firm’s systems and products help cut labor and waste on construction sites, Chief Operating Officer of Health and Life Sciences Louis Arzano said.

There is less need for workers or specialists like electricians, which can contribute to an overall faster process. Six of the seven hospitals built in the New York City region last year used Gil-Bar products.

Arzano said he is seeing slow, steady expansion across the industry; it isn't an overnight change, but it is slowly shifting how work gets done. He views it as evolutionary, not revolutionary. 

“We’ve had computers in offices for decades, and has the office gone totally paperless?” Arzano said. “No, but are you using less paper? Yes. And I think modular adoption is going to be the same way.” 

There are still some significant challenges to meet before the industry fully embraces modular. The cost benefit isn’t necessarily there, Malone said. Modular walls and clean rooms can help move a project faster, which saves money, but the actual construction costs aren’t always lower. And especially in urban environments, it can be challenging to find enough space on a building site to move, place and position large modular pieces. 

It is also challenging to embrace a new way of doing business. 

Dacon Director of Operations Architecture Jennifer Luoni said many of the clients she has spoken with lately don’t feel the flexibility of modular justifies the premium just yet. 

“I think a lot of traditional people with labs are having a hard time making that jump,” she said. “They aren’t understanding the value, with the upfront costs. It’s probably the right thing to do, but people don’t know how to take the risk moving forward. I think it’s a traditional mindset that needs to be broken.”