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Inside Modular: The Podcast of Commercial Modular Construction
Inside Modular is the official podcast of the Modular Building Institute, the Voice of Commercial Modular Construction. This series will highlight industry news and trends, include conversations with industry thought-leaders, and discuss the advantages of modular building construction.
Inside Modular: The Podcast of Commercial Modular Construction
A World of Potential: How Supply Chain Integration & a Respect for Culture are Powering AluHouse LLC
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Eric Kwong, founder of AluHouse USA LLC, started with an aluminum manufacturing foundation in Hong Kong and used that advantage to create durable, design-forward modular units. From there, the company’s path tracks the pressures reshaping construction worldwide: labor shortages, housing demand, and the need for consistent quality that job sites often struggle to deliver. In this episode, Eric describes how AluHouse's capabilities expanded from aluminum into steel and concrete systems that can support mid-rise and high-rise modular construction.
Eric also shares what makes global expansion succeed or fail. Eric explains how to evaluate market potential, why building codes and QA/QC systems matter, and why culture is not a side note but an operational requirement. He digs into supply chain integration, certification needs across regions, and where modular clearly outperforms traditional construction today, plus where customization and complex finishes still require careful planning.
Listen to all episodes of MBI's Inside Modular podcast at https://www.modular.org/inside-modular-the-podcast-of-commercial-modular-construction/
Welcome To Inside Modular
SPEAKER_00Hello and welcome to Inside Modular, the podcast of commercial modular construction brought to you by the Modular Building Institute. Welcome everyone. My name is John McMullen. I'm the marketing director here at MBI. Today I'm joined by Eric Quang, founder of Alu House USA. Eric is here to talk about the growth of Alue House and how other modular building companies can scale internationally. Eric, welcome. Hi, John. How are you? I'm very well, sir. Thank you for being here. I appreciate
Eric’s Path Into Modular
SPEAKER_00it. Tell me about yourself, Eric. What's what's your background and how did you end up in modular construction?
SPEAKER_01Yeah, my name's Eric. I'm the founder of the uh Aluhao USA. So I started the business 12 years ago. Um it was founded in Hong Kong because I'm from Hong Kong. Um, but I was studying in the state, um, my high school and my college. So I was US educated, and then I went back to my family business for 10 years, and then I started my company um back in 2014. Um to be honest, I'm not a architect or engineering background. I'm I'm a purely business, business graduated um from USC, California. Um the reason I moved into modular is what just like a coincidence that I have. Um back in the day, my family business was doing, uh is still currently doing the uh aluminium, aluminum extrusion, um, which we do a lot of architecture profiles and um applications for high-rise and curtain wall, stuff like that. So we are quite familiar with the um construction industry, and one day we want to build something inside a
Why Aluminum Became The Answer
SPEAKER_01factory like um like a gas house, you know. Um, but we're in um southern China, which is like the weather is like Florida, humid, hot, and we have um termine for the timbers, problems like this. So since we're doing aluminum, and then we were thinking, oh, why don't we try to build something with aluminum profiles? Because we have all these mole uh dies and uh presses, so we can make something out of it, and we we did something out of it, and then it was great actually. Um, it was like a 400 square feet, um, about 400 square feet size, like a small module um unit, and then we put um the interior fit out and everything in there, and it looked nice, you know, um, because the um the coating from aluminum it can be um powder coating or or PVDF, we can have different kinds of colors. So we did it very nicely, and then we have the big glass um made out of glass, like a facade, and then people liked it, you know. Um, and then we was like, oh, we can make houses um in aluminum, and then this is how I started my first modular house with aluminum, and this is how my company name my company was named it.
SPEAKER_00Well, that makes sense to me now. Uh tell me, how has your vision for the company changed since you started with these smaller aluminum structures in
From Resorts To Public Housing
SPEAKER_00China? How has your vision changed as you've grown internationally?
SPEAKER_01So, yeah, it's a long journey. So um at the beginning, we were doing uh people since people liked it, and back in the day we're doing a lot of um like Airbnb um types of resort hotel, like the individual unit, one-story, double story with uh aluminum modular. Um, yeah, we we did quite well back in the day. We sell um a couple hundred units a year, and until 2017, um when the Hong Kong government is announcing a um new scheme for building houses, because back in the day, even now, we have labor issues. Like we have aging problems, we don't have enough labor. And uh because Hong Kong is a small place, they don't allow um foreign neighbors, so it's purely local laborers, we don't have enough people, people don't want to enter the industry. I think it's the same problem everywhere in the world, in the US, in Australia, a lot of people uh in Europe as well. So we're facing the same problem. So the Hong Kong government has
High-Rise Modular With Steel Concrete
SPEAKER_01imposed a scheme to build something called modular integrated construction. Um, at that time, I was looking at it because I'm from Hong Kong, so I go back to the uh my my my city and then explore this opportunity um in Hong Kong. So I was looking at it. Oh, it's just some modular built from the factory and in and installed it on site, but it's higher, a little bit higher because um in Hong Kong we we we build high-rise because we don't have enough land. So it is exactly what I'm doing, but it's just a different type of structure. They are using steel structure and even concrete structure. So very similar to what we we were doing. So at that point, then I start to go back to Hong Kong and work with the Hong Kong government to these um modular business, and we were quite successful for the last um since 2017 until now. So we have expanded from aluminum structure modular into steel structure modular um and also concrete structure modular, and we build higher and higher. Um, for steel structure, we our system can go up to 30 fold 35-story high, and even for um concrete structure, we go to go up to 40 to 45 story high. So it's a journey that we learn and adopt, and we're learning every day.
Expanding Beyond Hong Kong
SPEAKER_00Your company started in Hong Kong, you grew your business there, but when you started to move out into other markets, what was that process like?
SPEAKER_01So, yeah, so for the last eight years, we learn a lot from Hong Kong. We learn how to we have our own design team, RD team, and even our construction team, we do our own installation, the setting outs ourselves. So we have a lot of experience that we learn. And Hong Kong is following the um British standard building code. So it's quite similar to some like the Western world, the foreign world. Um, we we have our own uh QA system, which is very detail-oriented, um, material compliance, everything is done properly. It's not like um the uh the Chinese um local one. So um we have the experience, um, and then we want to move forward to to expand our knowledge to the different parts of the world to help the housing crisis or solving housing problems to different countries. Um we moved, we have been um established a new base in Saudi Arabia, which is a um mostly a concrete concrete modules manufacturer. Um is a JV with a local partner, and uh we are in negotiating um to set up another factory in the state as well. So um, yeah, I mean we have been going to Australia as well, New Zealand, um, US and Saudi. Um, because we know a lot of things, and we we're complying different country building code. Um, yeah, this is what we do, and we have a strong design RD team behind us.
SPEAKER_00Well, you've obviously been very successful expanding all over the world. How do you decide which markets are worth entering versus those that just uh look attractive but maybe aren't yet viable?
Choosing The Right Global Markets
SPEAKER_01Um, I think um one thing that we look at when we go to um uh each market is the potential of growth. So um back in the day, let's say for United States, um back in 2017 when we first sent our modules to US, um people doesn't have well, they have some idea of what is um modular, but they don't have a deep knowledge about it. From what they know, uh modular is something like a manufacture home that is put in the RV park. But um actually over the years, modular can do a lot that you can imagine, like high-rise building, like uh mid-rise um apartment, um, school, um, hospital, public facility, a lot of things that you can it can be done in modular, but you just need to do it in a proper way. So, yeah, I mean, over the years, people recognize it now. So there is a potential to grow. So this is why we entered to the US market, and US market is one of the biggest markets in the world. Um, this catch our interest. Um, the other thing is um whereas the labor cost is high and and uh limited, this is another market that we can look at. Um, because for example, Australia, um, they don't have enough labor to build. They uh they have shortage of housing, um, and their construction is going higher and higher. Some of the places is even higher than US. So they need some other solution to build. Otherwise, they are they have shortage every year, and then once they accumulate, the shortage will be huge. So this is one of the reasons, too. Um, we step into the Australian and New Zealand market, and um also in the Middle East, Middle East fast growing country. Um, I mean the the region, fast-growing region, even though with the war right now, but I think um it will be um very subtle very soon. But once it's settled, it will restart again and build. And um in Saudi and even in Dubai, they're building every day, and they don't have they have a lot of foreign neighbors, but they're the problem with them is the quality of the craftsmanship is very poor. They need some they see some solution to that, which we they well, which we all agree that the factory built modular has a better quality than the on-site building craftsmanship. So yeah, this is the solution for them, and um, and they like it.
SPEAKER_00As you've scaled internationally, and you've mentioned bringing on uh steel frame construction, concrete construction, modular construction all over the world. Have you as you've uh scaled up, what's been the biggest operational challenge that you've faced and and how did you solve that?
Culture And Compliance Challenges
SPEAKER_01Well, um, if you go to every country, they have their own cultural um that you need to adopt. For example, Middle East, um, you need to adopt the culture because they are Muslim country. There's some rules and restrictions that compared to China, and you need to follow that. You know, you need to respect that um the culture. So we we we have modification, we we we we we in our management we adopt local what is required, and with our management experience, we mix and match. This is how we usually do. Um we cannot take whatever is success in one country and put it in a car in a into into another country, it won't work. Same as US. Um, US has its own regulation and um and and law, so we need to respect that and follow that. Um yeah, but in in overall run, um we we tailor mate our manage style to a different part of the world for manufacturing.
SPEAKER_00That's a great point, Eric. I'm glad you brought that up. I think uh it's very easy to forget really the uh importance of local culture, local to local traditions, and really what that means for businesses. Uh, just to pivot, though, for a second, I was looking at your website, preparing for this conversation, and you talk a lot about supply chain integration. What does
Supply Chain Integration In Practice
SPEAKER_00that mean for Alu House and its day-to-day operations?
SPEAKER_01Well, for us, we have um unique um supply chain for us, though. Um okay, you as obviously know um my family business is doing aluminum extrusion. Um, they he they get they have been very helpful to us for some of the uh aluminum supplies, for example, when um the aluminum for windows and doors, and also the facade. Um, because most of our facade we are using aluminium, um, like a curtain wall type or the panel type. Um that's have been help help helping me a lot um for part of the um the supply that we I don't need to rely on other people. And um we ourselves we have our own window facade manufacturer as well. So we don't have to buy windows from someone else. Um we have our own certification of windows, different parts of the country, the um the US NFRC or the Australian or the uh British standard um windows. We we have all the certification that we have we have got. And um, so we have Windows facade, and um outside of um what we buy in China, as you know, now these days they are the they have almost everything coming off of China. So we have a very strong um supply chain um supplier, I mean, from my resources. So I can get things very easily. I can get the steel easily, I can get ASDM steel or AS standard steel or BS standard steel, I can get it very easily and very accessible. So um the steel, the concrete, or the the fireboard, or the the plumbing, or the bathroom, the sanitary um um stuff that I can get it very very accessible, and um I have a very short lead time to get in them. So, yeah, this is some advantage I have developed over the years.
Where Modular Wins And Lags
SPEAKER_00For your commercial projects and uh just commercial projects in general, where does modular, uh, in your opinion, clearly outperform traditional construction today? Uh you mentioned early in the conversation that in some parts of the world uh the standard for construction is much lower, it's poorer quality than modular. Uh can you speak some more about the advantages of modular? And maybe and if there are some ways where modular is still catching up to traditional construction.
SPEAKER_01I think um module one one thing modular needs to follow is as long as they are very standardized, it will be very easy to manufacture and more very efficient. Um but custom projects like the um six-star hotel, you still need some work on modular, you know, is it's because it's fully customized, like a Rosewood six-star hotel or Sang Regio's hotel. Um I would say 50-50. Maybe um the the framing, the box itself can be um done in modular way, but some interior fit out, maybe half of them can be done in the factory, half of them need to be do on site because of the complexity, because um um there will be um joint. You know, when you put the joint or put the box, uh put the modules together, they will be joined, but you know, six-star hotel, they don't allow that. They don't they don't want ugly joint, but because of that, that part of it will be need to be um, you know, that part of the interview fit out need to be done in the on site. So it can be done. Um but um hospital is another way to is in and and I mean um clinical, I should I should say clinical sector is another potential to grow because of the uh complexity of the um the MEP that involved with the system. Um if we can uh because we have done that, the one of the three of three of the hospital projects, the MEP is if you can done it in the factory, it's much it's faster and more efficient than do it on site. Because you know, usually uh you build a project, take years. If you do it in a modular way, if you can resolve the MEP problem, I mean, uh not the problem, uh I mean do it in in the factory or be a lot faster.
SPEAKER_00In your experience building all over the world, different types of materials, different types of projects, what do you find that developers and owners are still getting wrong about modular construction?
SPEAKER_01Well, a lot
The Biggest Modular Misconceptions
SPEAKER_01of people, like I said, um they still think modular is still some boxes in your backyard. This is the current mindset that they have. Like I said, I mean, we have done a lot in Hong Kong over the years. We build everything, like private resident, public housing, school, hospital, public facilities, and a lot of dormitories, like student housing. Um, we can do it anything, but they just don't realize it because no one has done it before. No, no one has um given the I think they starting doing right now, but it's not as much a dop as Hong Kong government has pushed forward to different sectors yet, but it can be done.
SPEAKER_00Last question for you. Uh looking
Advice For International Growth
SPEAKER_00ahead, where is Aluhaus focused next? And what uh advice would you give companies who are trying to scale internationally right now?
SPEAKER_01So my advice um if if anyone tried to do international expansion, um first of all, you need to understand the market, the local market deeply. Understand the culture. This is very important because cultural conflict can cost you a failure because you don't respect the culture, people don't like you, this and be people disobey you. Once they learn, they fly away. This is the risk that you need to keep in your mind. You need to respect the local, work with them, you know, it become a win-win situation. This is very important. Um looking ahead for us, we will focus what we have started and try to expand it to different more countries. Um US is um a new base, so we will um uh focus on that as well. It's a huge market, and then we will probably have one or two more facilities um in the state. So yeah, it is a long journey for us.
Thanks And Sign Off
SPEAKER_00Well, Eric, I really appreciate your time today. It was great to meet you in Las Vegas a few weeks ago at World of Modular. Thank you for being there. Thank you for your time today. I very much appreciate it. Thank you, Johnny. It's my honor. Thank you very much for your time. My name is John McMullen. This has been another episode of Inside Modular, the podcast of commercial modular construction. Until next time.