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How Stack Modular is sequencing its Australian market entry.
Canadian volumetric modular manufacturer Stack Modular is taking a measured approach to entering the Australian market, focusing on mid-rise and high-rise steel modular buildings rather than rushing into local manufacturing. (main image: Under the northern lights in Iqaluit, the Aqsarniit Hotel and Conference Centre shows how modular construction has been used to deliver a mid-rise hotel in a remote Arctic setting.)
Speaking early in the process with Built Offsite, Stuart Marshall, Director of Global Sales at Stack Modular, outlined how the company is assessing Australia as a long-term market, beginning with imported volumetric modules while working through compliance, partnerships and pipeline development.
Marshall was speaking in conversation with Michael Dolphin, publisher of Built Offsite, as part of an in-depth discussion on Stack’s background, technical model and global outlook.
Founded on a global mindset
Stack Modular was founded in 2009 by Canadian engineer Jim Dunn, whose professional path shaped the company’s global-first outlook. After studying engineering at university, Dunn relocated to Shanghai, where he established trading businesses and became closely exposed to large-scale industrial manufacturing and modular construction.
Rather than treating modular as a domestic product, Dunn recognised early that volumetric construction could be supplied internationally, provided it was engineered to meet local codes and performance standards.
“Jim never wanted Stack to be a conventional modular business tied to one geography,” Marshall said. “From the outset, the thinking was that this could operate as a global platform, but only if engineering discipline and compliance came first.”
Aqsarniit Hotel and Conference Centre in Iqaluit, Canada, delivered using Stack Modular’s steel volumetric modular construction system.
That mindset continues to define the company. Today, Stack operates with a head office in Vancouver, a core office in Shanghai, and manufacturing facilities located outside the city. The business currently utilises four factories and has delivered projects across around 14 countries and three continents.
Interior of the Aqsarniit Hotel and Conference Centre in Iqaluit, Canada, delivered using modular construction.
“For us, working globally keeps the business sharp,” Marshall said. “Every new market forces you to test your assumptions, your system and your processes.”
Structural steel volumetric, not containers
Stack’s construction system is based on bespoke welded structural steel frames designed individually for each project. Marshall was clear that the company does not manufacture container-style modules.
“We don’t build shipping containers,” he said. “What we produce is a post-and-beam welded steel frame that’s engineered specifically for the building in question. The only real constraint we face is transport logistics.”
The system is capable of delivering buildings of up to 40 storeys, placing Stack firmly in the mid-rise and high-rise segment rather than low-rise housing. Typical typologies include student accommodation, hotels, build-to-rent apartments, healthcare and institutional buildings.
Inside Stack Modular’s factory in China, modules take shape as steel frames, envelopes, and internal services are completed in sequence.
Marshall stressed that modular construction is not a universal solution.
“I turn down more projects than I accept,” he said. “Modular has to suit the project. Low-rise construction is extremely competitive. Once you move into six to eight storeys and above, the economics and the risk profile start to change.”
Compliance before expansion
A defining feature of Stack’s approach is its emphasis on technical compliance as a prerequisite for entering any new market. Marshall described compliance as the company’s first gate, not a box-ticking exercise after the fact.
“Every time we enter a new country, the first thing we do is analyse the technical requirements,” he said. “Sometimes that’s desktop studies, sometimes it’s full-scale testing. We don’t move forward until we know we can demonstrate compliance.”
The company has previously undertaken extensive testing for California and is now working through Australian compliance requirements, including wind regions, structural performance and alignment with local codes.
“We know the system can perform,” Marshall said. “The work is in proving it, and that takes time, data and investment.”
Why Australia, and why Queensland first
Marshall said Australia had been on Stack’s radar for several years, largely due to a perceived gap in mid-rise and high-rise modular capability.
“There are plenty of modular companies operating in Australia,” he said. “But very few can go beyond two or three storeys in a repeatable, engineered way. That creates a genuine gap.”
Queensland emerged as an initial point of engagement for several reasons, including upcoming Olympic-related accommodation demand and the opportunity to engage directly with the Australian offsite and modular construction sector through industry forums and events.
However, Marshall was careful to stress that this should not be interpreted as a commitment to immediate local manufacturing.
“At this stage, we’re evaluating the market,” he said. “We’re looking at pipeline, partnerships and technical fit. Manufacturing only makes sense once there’s enough volume to justify it and to ensure we can remain competitive.”
Stack is also exploring opportunities in New South Wales and Victoria as part of its broader assessment of the Australian market.
Import-led start, local partnerships
In its initial phase, Stack intends to supply Australia from its existing manufacturing base near Shanghai. Depending on the building type, modules can be delivered either fully complete or partially complete.
“For hotel and student accommodation projects, modules are typically 100 per cent complete,” Marshall said. “For apartments, you’re usually around 80 to 90 per cent complete because of the connections that need to happen on site.”
Rather than replicating a full manufacturing operation immediately, Stack may consider intermediate options over time.
Completed volumetric modules by Stack Modular being prepared and loaded for international shipment.
“There may be scope for finishing or assembly facilities locally in the future,” Marshall said. “But that’s a medium-term discussion, not a starting point.”
Stack positions itself strictly as a manufacturer, working alongside local head contractors, consultants and delivery partners rather than attempting vertical integration from the outset.
“We rely on strong local partners,” Marshall said. “Local knowledge is essential. We’re not trying to parachute in an entire delivery model.”
Cost, scale and digital delivery
Marshall said Stack’s cost position varies by geography and building type. In Australia, early pricing indicates modest cost advantages compared with traditional construction, driven largely by supply chain scale and manufacturing repeatability.
“Our system doesn’t really care whether it’s one storey or 20 storeys,” he said. “Traditional construction costs escalate as height increases, and that’s where volumetric construction starts to balance out.”
Beyond physical manufacturing, Stack has invested heavily in digital capability, including an in-house AI engine used to assess feasibility, cost and programme at speed.
“What used to take weeks can now be done in hours, subject to verification,” Marshall said. “Combined with BIM, it allows us to operate as digital builders, manufacturing directly from a digital model.”
A measured entry
Marshall emphasised that Stack’s Australian strategy is deliberately cautious, prioritising long-term viability over rapid announcements.
“We’re not here to rush into a market,” he said. “If we enter Australia, we want to do it properly, with compliance, partners and a clear understanding of where modular genuinely adds value.”
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