Chicago-based Z Modular is ramping up efforts to deliver faster, more cost-efficient buildings across the U.S., and it’s bringing in fresh leadership to accelerate that mission.

The offsite construction division of steel manufacturer Zekelman Industries has appointed Nate Arnold as its new president, according to a company news release. Arnold brings more than 20 years of experience in construction and real estate development, having most recently served as senior vice president at Brookfield Properties, a major commercial real estate firm headquartered in New York City.

Z Modular is already building on a strong foundation, with eight modular projects completed and another 10 underway, according to the release. Arnold steps in following the promotion of Mickey McNamara, the former president of Z Modular, who now serves as president of Zekelman Industries.

In a conversation with Construction Dive, Arnold outlined his vision for Z Modular’s growth and emphasized the firm’s vertically integrated approach to tackling inefficiencies in construction.

“Z Modular is a fully integrated commercial real estate developer, driven by the idea that there is significant room for improvement in the industry, a belief that I think many would agree with,” said Arnold.

He pointed out that Z Modular leverages Zekelman's manufacturing background—particularly in steel and PVC-based products like structural tube steel and electrical conduit—to create repeatable, high-quality components at scale.

“These products, such as structural tube steel, electrical conduit and water pipe, are highly repeatable. In order to be profitable, it is not enough to simply manufacture them, they need to be made at volume with consistent high quality,” Arnold explained.

The company’s core belief is that modular construction can help solve the commercial real estate sector’s affordability challenges. “Z Modular was founded on the core philosophy that shortages, and the resulting affordability challenges, in the commercial real estate space could be solved with a more industrialized perspective,” Arnold said.

Currently, Z Modular sees the strongest opportunities in residential development, particularly multifamily housing—a sector aligned with standard modular dimensions and ripe for faster, more predictable delivery.

“Due to housing shortages in nearly all major markets, residential development has the greatest potential upside for a higher efficiency product. Multifamily residential, in particular, benefits from logical modular sizes that align well with standard designs and can be efficiently shipped across the country,” said Arnold.

He also identified student housing and hospitality as growth areas, though the immediate need in those sectors is not as pressing. “In the future, we may evaluate how to effectively deliver other product types, but housing definitely is our focus for the foreseeable future,” he added.

Arnold emphasized that the key to Z Modular’s efficiency lies in controlling as many aspects of the construction process as possible—from design through manufacturing to on-site work. The firm’s vertically integrated model helps streamline project delivery and mitigate common setbacks.

“I had a boss early in my career who got flummoxed by yet another report about some issue we had encountered. His comment to me was, ‘Nate, do you want to report the news or make the news?’ It has become a mantra for me to consistently look not just at what’s in my way, but at how to get issues out of my way,” he said.

Arnold compared traditional project management to “herding cats,” describing the challenge of aligning multiple stakeholders. “While our production plants are very efficient, able to produce two square feet of finished product for every man hour, that’s not everything that goes into delivering a multifamily apartment building,” he said.

Z Modular has built out its own on-site construction teams and developed in-house trade capabilities to further reduce project risks and ensure tight schedule control. “We really want to have as much direct influence as possible,” said Arnold.

Modular construction is also gaining traction due to growing pressure on developers to move quickly and respond to shifting market demands.

“I actually think it’s industry headwinds that encourage developers to look at alternative methods,” Arnold noted. “Regulatory reviews can be black boxes, with any number of changes required on each project. Sensitivity to time makes quicker deliveries more attractive.”

With increasing unpredictability in supply and demand cycles, speed and consistency are becoming vital competitive advantages. “Being quicker to market in a more predictable, and therefore less risky fashion, is a competitive edge as Z Modular delivers for both ourselves and third-party partners,” he said.

Beyond simply producing modules, Z Modular participates deeply in the real estate process, acting both as a vendor and full development partner. The company uses its own real estate portfolio as a proving ground for new technologies and products.

“We are both a vendor and a full partner in the real estate process. Zekelman has used developing its own portfolio both as a long-term investment strategy and as an R&D lab for the products we offer to our partners,” said Arnold.

Looking ahead, Z Modular is planning for aggressive growth, with the goal of producing 5,000 multifamily units or more per year. “We also can offer a range of services, from full-service development to simply producing modules. Over the next few years, we’ll have an incredibly strong product offering of multifamily buildings,” Arnold said.

Originally reported by Sebastian Obando in Construction Dive.