Polski
Timber Prices Climb and Billion-Dollar Forecasts: The Modular Construction Industry Accelerates on Two Fronts
This week in construction brings together two contrasting perspectives: a short-term one, where material prices are once again spiking, and a long-term one, where analysts are charting a decade-long growth curve for modular and prefabricated construction stretching into the next decade. We take a look at what the latest GUS data and a fresh market report mean for companies planning investments in prefabrication.
01 · Prices and Costs
Timber and OSB Prices Rising Fastest in Two Years
GUS data for August 2026 leaves no room for doubt – construction and assembly production prices rose 6.2% year-on-year, the highest reading since May 2024 [1]. The steepest increases hit materials that are key to timber-frame and modular construction: OSB boards and structural timber jumped as much as 11% in price, while thermal insulation rose 5% [1].
What's driving this? Experts point to two overlapping factors – a rebound in investments financed by KPO funds, and rising demand for housing, which is fueling orders across the entire supply chain [1]. On top of that comes wage pressure – the average salary in construction has already reached PLN 9,162 [1]. For companies working in prefabrication and timber-frame homes, this is a signal to start updating cost calculations now, ahead of the building season, because the very material that not long ago was the argument for cheap, fast construction is itself starting to generate price pressure.
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02 · Market Forecasts
The Modular and Prefabricated Market Set to Double by 2035
While domestic data shows short-term price turbulence, global forecasts paint a far calmer, yet still impressive, growth picture. The latest market report values the global modular and prefabricated construction sector at USD 171.1 billion in 2025, projecting growth to USD 307.2 billion by 2035 – nearly doubling in value within a decade [2].
Among the industry leaders, the report names companies such as Skanska, Bouygues Construction, and Laing O'Rourke [2]. Interestingly, timber – the same material that has just risen sharply in price in Poland – already accounts for 34% of the global modular market and is growing at a rate of 6.4% annually [2]. This shows that despite price pressure, timber and modular construction continues to gain market share at the expense of traditional methods. Germany also stands out on the map, with a result of USD 23.19 billion in 2025 – a market driven there not so much by lower costs as by strict building regulations and a chronic labor shortage, which is prompting investors to turn to prefabrication as a way to speed up projects while relying on fewer workers on site [2].
03
Two Speeds, One Direction
Putting both pieces of news side by side, it's clear that the Polish market is currently grappling with a short-term cost shock, while the global trend clearly favors modular and prefabricated technologies – even amid rising timber prices. It is precisely this gap between current costs and long-term potential that is making production efficiency, optimized material use, and process automation key topics today for every company in the modular, timber, and prefabricated materials industry.
That's exactly what we'll be discussing at Modular & Prefab Expo Poland 2027 – Targi Technologii Budownictwa Modułowego i Materiałów Prefabrykowanych. It's a chance to see firsthand the machines and production technologies that help companies stay profitable despite rising raw material costs, and to discover the solutions driving global growth in the modular sector. Stay tuned for the next edition of our industry roundup – and save the date for 2027!
Invitation
Rising timber and OSB prices are now one of the biggest challenges for manufacturers of modular and timber-frame homes – yet global forecasts show this market segment is only set to grow in importance. Visit Modular & Prefab Expo Poland 2027 to see the technologies and machinery helping producers stay profitable despite rising raw material costs. Meet industry leaders and find out how to prepare your company for a decade of dynamic growth in the modular sector.
Modular & Prefab Expo Poland 2027Footnotes
[1] obserwatorgospodarczy.pl — https://obserwatorgospodarczy.pl/2026/09/21/budowanie-w-polsce-znow-mocno-drozeje-ceny-rosna-najszybciej-od-ponad-dwoch-lat/[2] GlobeNewswire — https://www.globenewswire.com/news-release/2026/09/15/3361706/28124/en/modular-and-prefabricated-construction-market-outlook-2026-2035-featuring-profiles-of-leading-companies-skanska-bouygues-construction-and-laing-o-rourke.html