Over the years, and especially the last several years of active advisory work, I’ve consistently been asked the same question: What makes one modular factory thrive while another stumbles?

People generally expect the usual ubiquitous answers:  poor planning, capitalization, sales and marketing, lack of backlog, poor quality, etc. And while those are important, they don’t tell the whole story or get to the root cause of a successful company. In my years as a GM on the floor, and later as an advisor, I’ve noticed something else—a pattern you won’t find in spreadsheets, business plans, or equipment lists. It’s harder to measure, but it shows up in every plant I’ve visited. And more often than not, it’s the pattern that determines where that factory is headed.

What the Floor Reveals

I’ve walked into plants with the latest machinery and ambitious schedules. On paper, everything looked strong. But within minutes on the floor, it was obvious whether the foundation was solid—or shaky. The way crews interacted, how leadership set the tone, the sounds of the plant, whether people believed in what they were building…these were signals you couldn’t miss.

As the oft used idiom states, “You can’t often see the forest for the trees.”  Many in management or those vetting manufacturers are so consumed with being engrossed in the specifics that they don’t see or consider the foundational aspects of a thriving business.  Those signals were manifested in varying ways, many of which weren’t so obvious to the un-informed or to those with self-imposed blinders.

This foundation is essential and applies equally to start-ups, turnarounds, or established manufacturers.   New equipment and fresh capital only go so far if the ingrained behaviors on the floor tell a different story.  Simple observations, short conversations with office staff, and those working on the line will reveal a company’s true foundation.

 When developers/builders visit manufacturers to vet potential suppliers, I often tell them: don’t just look at the product, backlog or the marketing materials. Spend 30 minutes on the floor. What you’ll see and hopefully learn there will tell you far more about the factory’s future than any spreadsheet or fancy brochures.  I provide a formal written list of what to look for or have in some instances, accompanied them on factory visits… It’s that important!

The Invisible Factor

This pattern is captured in conventional parlance by the term “Culture”.  This term seems to represent an aversion that many assume in not considering its importance or in even considering its ramifications.  Culture isn’t about production numbers, slogans on the wall, or polished presentations.  It’s about the underlying force that shapes day-to-day decisions and attitudes. It’s subtle, but it’s powerful. And once it takes hold—good or bad—it influences everything that follows.

Every plant has it. Some harness it, and grow stronger because of it. Others ignore it, and pay the price.  Culture is what differentiates an organization and what often separates winners from loosers.

The Bottom Line

Factories don’t succeed or fail overnight. Their trajectory is set early, in ways that most people overlook. That’s why I believe paying attention to a company’s culture is essential in determining and understanding where a plant is presently and where they are headed.

I feel so strongly about this oft-overlooked aspect that I will be devoting several articles on this website to explain and expand upon its significance.  No preaching, just practical experience-based observations.

At Offsite Innovators, my mission is to share what I’ve learned from years on the floor and years advising others—so that whether you’re starting up, turning around, or choosing a supplier, you can make informed decisions.

👉 If you’d like to explore this further, connect with us today.