In talking recently with an Offsite modular manufacturer I was impressed with their interest in a relatively new innovative air distribution system that appears to have many distinct advantages not only for modular manufacturers but also for site built multilevel projects. After contacting Rheia and talking with Nigel Watts VP at Rheia, their product does have all the earmarks of an innovative approach that bears further exploration.

 Nigel Watts, Vice President of RHEIA, LLC

Bill Murray, Offsite Innovators: Would you give us a brief history and description of your company?

Nigel Watts,VP Rheia HVAC Stystems: Rheia’s journey began in 2019 after nearly a decade of research, development, and rigorous testing of an innovative HVAC air distribution system designed for optimal efficiency and enhanced comfort. Backed by capital from seven of the nation’s largest homebuilders, leading industry manufacturers, and numerous individual investors, Rheia assembled a team of seasoned manufacturing, supply chain, and software development experts dedicated to redefining comfort and efficiency in homebuilding. In the spring of 2020, Rheia launched our first pilot home, marking the beginning of a new era in HVAC technology. Rheia is currently active in most major homebuilding markets in the US and is installed in over 20,000 homes in the US and Canada.

Bill Murray: Rheia touts an innovative system that revolutionizes the installation of Hvac products in the homebuilding industry.  Would you describe your unique system?

Nigel Watts: Rheia is a home-run, small-diameter air distribution system installed within the home’s conditioned space, designed to reduce energy use and improve HERS scores. The system features durable, uninsulated ducts and engineered thermoplastic fittings that quickly assemble to create sealed connections without the need for imprecise, messy duct mastic. Rheia is engineered for easy installation, boosting productivity for HVAC contractors in an industry facing labor shortages. Paired with the industry-first Rheia Verify balancing app, the system enhances thermal comfort and minimizes the costly callbacks commonly seen with conventional duct systems.

Bill Murray: How does the Rheia approach differ from conventional, traditional HVAC applications making it truly innovative?

Nigel Watts: Rheia’s air distribution system changes the game by dramatically simplifying installation. It can reduce installation time by up to 60%, to keep projects on track and maintain high productivity despite workforce shortages. Training for the installation process can be accomplished in mere minutes.

Balancing a traditional HVAC system is another headache—it’s labor-intensive, error-prone, and often leads to uneven temperatures and higher energy bills. Many systems fail to consider the home’s orientation, leading to inefficiencies that require multiple site visits, increasing costs and frustrating customers.

Rheia tackles these problems with its Verify App, a powerful tool that simplifies the complex balancing process into just 10 straightforward steps, taking only 30 to 45 minutes to complete. The app guides technicians through each stage, from verifying equipment settings to adjusting blower speeds and entering room airflows. This ensures that the system operates as intended, reducing the risk of costly errors and ensuring customer satisfaction.

In short, Rheia’s air distribution system and Verify App streamline the installation and balancing of HVAC systems, improving performance, reducing costs, and addressing labor challenges. This innovative approach ensures that HVAC systems work efficiently and effectively, leading to happier customers and more successful projects.

Bill Murray: What are the significant advantages to a builder in using the Rheia system?

Nigel Watts: While solutions like conditioned attics and deeply buried ducts can help reduce heating and cooling costs, Rheia takes a more efficient approach by installing ductwork within the home’s thermal envelope. This method is faster, easier, and more cost-effective. Recent code changes, upgraded tax rebates, and energy incentives are pressuring builders to improve the energy performance of their homes.

The most cost-effective way to meet these new requirements is to move ductwork inside the home’s conditioned space. The challenge they face, however, is that it is costly to make this change. Due to the complexities of rerouting bulky, insulated ducts or creating conditioned attic spaces, Rheia’s compact system is the only cost-effective way to bring ducts into conditioned space. Beyond the financial benefits, builders can also realize improved HERS scores with this approach, improving the marketability of their homes.

Bill Murray: What are the specific advantages of the Rheia products to the Offsite building industry,  particularly to the volumetric modular industry?

Nigel Watts: The Rheia system is a highly engineered solution designed for efficiency and precision. Its high-performance components snap together seamlessly, eliminating the need for time-consuming post-operations such as air sealing after assembly. This approach is perfectly aligned with the volumetric homebuilding approach, which emphasizes a systems-based method of manufacturing that thrives on consistent, repeatable processes.

Rheia’s straightforward design allows installation crews to be trained in just minutes, a significant advantage in an industry facing skilled labor shortages. This combination of simplicity, speed, and reliability makes Rheia an ideal choice for modern homebuilding, where efficiency and consistency are paramount.

Bill Murray: This appears to be a different approach to HVAC installation.  How does Rheia provide training and support for new HVAC contractors?

Nigel Watts: Rheia takes a hands-on approach to guide a contractor through the change management process providing on-site training and easy-access resources. We pride ourselves in our dedication to supporting contractors as they transition to Rheia.

How has your product been accepted in an industry that often resists change?  What are your plans and goals short term as well as long term?

At Rheia, LLC, we’ve observed a wide variety of reactions from builders and contractors as they encounter our system. The homebuilding industry, with its deeply ingrained practices and reliance on traditional methods, can be resistant to change. This resistance is understandable; altering established processes can disrupt workflow retraining, have the potential to impact financial results, and initially seem risky.

However, we’ve found success when partnering with companies that are open to exploring new solutions and willing to embrace the benefits that come with innovation. These forward-thinking builders and contractors recognize that while the transition may pose challenges, the long-term gains—such as improved energy efficiency, reduced installation time, and enhanced system performance—are well worth the effort.

Above all, we’ve learned that patience is essential when introducing new products to the market. Change management in this industry requires time, persistence, and a deep understanding of the challenges builders and contractors face. We are committed to working closely with our partners, providing the necessary tools, training, and support to ensure a smooth transition and, ultimately, a successful integration of Rheia’s advanced air distribution systems into their projects.

The future is bright for Rheia, and for the industry. Gradually, we are having an impact n and refining our business processes and understand of how to make change as painless as possible for our customers. Looking forward, Rheia will be expanding into new segments of the residential homebuilding market, and we have a range of exciting new products already in the works.

Bill Murray: Thanks to Nigel Watts, VP at Rheia for the introduction to an innovative approach to hvac distribution systems. In talking with several modular manufacturers they have expressed a keen interest in this system. Be innovative……check it out.

OFFSITEK is rapidly becoming a leader in automated offsite industrialized construction. Offsitek provides extensive services to support GC’s and owner developers. Their robotic based manufacturing plant produces light gauge steel framing panels, but there is so much more to their vertically integrated approach to offsite construction.

Learn more about this Charlotte, NC based company as Dwight Morgan, Chief Manufacturing Officer & Co-Founder of Offsitek, talks about the role of light gauge steel modular panels coupled with their unique marketing of complete on site support and services.

Co-founders Rick Admani (left) and Dwight Morgan (right)

Dwight thanks for taking the time to share Offsitek’s current efforts as well as your company’s plans for future expansion. Let’s talk not only about light gauge steel products but also your offerings in total support packages to GC’s and owner/developers.

Bill Murray Offsite Innovators: Can you give me a brief overall description of Offsitek as a company?

Dwight Morgan Chief Manufacturing Officer and Co-Founder : OFFSITEK is an automated, offsite, industrialized construction company. We provide light gauge steel framed panelized systems to the commercial and multi-family residential new construction market. We fabricate these lgs panels in our state of the art manufacturing facility just outside Charlotte, NC. Our fully integrated panelized systems are energy efficient, disaster-durable, sustainable, and fire resistant. We offer complete end to end solutions in addition to our manufacturing capabilities. We sell to GC’s who have their own self-perform teams to erect the panels. Our concentration is on providing wall systems, floor cassettes, stairwells, elevator shafts, bathroom, kitchen, and laundry mechanical pods. Our focus is on supporting GC’s and owners.

Bill: What inspired the formation of Offsitek?

Dwight: The inspiration behind the formation of Offsitek was driven by two key issues: 1) the fact that the construction industry is one of the largest industries in the U.S., representing over 13% of our GDP, and 2) that the industry has a historic record of very poor productivity.

Offsitek was inspired by the stark reality that the US construction industry was underperforming and unable to meet the needs of a growing market. We were inspired by the fact that over 500,000 US citizens are homeless every night due to lack of supply of shelters and affordable housing solutions. Our challenge was to introduce prefabrication elements to make construction resemble that of modern day, industry 4.0 manufacturing.

Bill: What led you to focus on offsite construction and pre-fabrication?

Dwight: Our extensive research indicates that the construction industry will need almost 1 million additional workers to meet the demand for labor through 2025. Offsite construction reduces the need for skilled labor that traditional on site construction demands. Offsite construction appeals to a workforce that does not wish to move from one construction site to another, but that takes place in a controlled setting not subject to weather extremes and other variables. Other advantages include condensed predictable schedules, curtails rework and waste, dramatically increases productivity and reduces costs.

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Bill: What are the core innovations that Offsitek has introduced to the offsite construction industry?

Dwight: Offsitek has pioneered many industry-first innovations in its pilot factory in Charlotte NC. 1) We have developed a “kit of parts’ featuring Design-Lead Architecture, 2) Digitalization of Design for Error Proofing of MEP Integration, 3) Building Science for Passive Energy Buildings 4) Automation of construction–lgs panelization of walls, floors, and roofs. 5) Prefabricated lgs volumetric bathroom and kitchen pods, 6) collaboration of workers alongside automation, 7) Adoption of steel vs wood panels and pods in multifamily, multi-level residential projects.

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Bill: How does Offsitek integrate technology such as BIM and 3d modeling in its construction process?

Dwight: Offsitek integrates four key computer technologies in its construction process, We combine VDC, BIM, Cad to Steel CNC machine file production and Cad to Steel Robotic Motion creation. All four systems comprise our unique “Cad-to-part prefabrication processes.

All construction projects are fully digitalized using 3D modeling. We rely upon certain systems from our technology partner, Autodesk, and upon their plug in developer partner Graitec/Stucsoft. We rely on Autodesk as well as MWF, Onyx, and ABB Robot Studio to create all digital workflows.

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Bill: To what extent is Offsitek focused on affordability and sustainability?

Dwight: Offsitek’s reliance upon steel framing plays a critical role in our focus on sustainability. Besides water, steel is the most recycled material on the planet. As such, our steel based framing solutions are based upon using steel, which is 98% recyclable, and in itself consists of approximately 75% recycled content in all new steel that we use in our process. Our focus on supply chain management results in decreased materials costs which contribute to making our products increasingly affordable.

Bill: What are Offsitek’s goals for growth?

Dwight: Our forward-looking 5 year outlook, known as our Next Level Strategy, is to expand the reach of our innovative process to other markets in the US. We are also in the planning phase of expanding within NC.

We have already begun in this Next Level Strategy through our recent joint venture with Visions Manufacturing of Canton, MS where our second state of the art automated prefabrication facility will open in late 2025.

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Offsitek will be focusing on manufacturing critical building components and systems especially applicable to the volumetric manufacturers. Modular elevator shafts, modular stairwells, kitchen and bath pods, will be manufactured for delivery and integration into onsite construction processes.

Again thanks to Dwight Morgan for sharing the innovative approach to using light gauge steel manufacturing of modular panels and extensive support systems available to GC’s and owner/developers. Innovation is the key to the growth of the offsite construction industry and Offsitek exemplifies the possibilities.

Offsite Innovators is launching our website with a truly innovative topic and a leading innovator. Merrick Macomber, wears many hats one of which of which is Chief Culture Officer at Autovol Volumetric Modular in Nampa, ID. Her innovative approaches however transcend her work at offsite innovator Autovol.

Learn more about this Innovator as I interview Merrick Macomber. Thank you Merrick for taking the time to share.

Merrick is Chief Culture Officer, an innovative title to say the least, at Autovol Volumetric Modular in Nampa, ID.

Bill Murray: Can you share your background and how it inspired you to work in the offsite construction industry, particularly with Autovol?

Merrick Macomber: I started my modular career at another local off-site builder over a decade ago. I always knew the construction sector was a good industry where a person could put in hard work and effort and make a decent income with or without a pedigree. At the time, this innovative company was building the Yellowstone Lodges using volumetric modular methods. I found this work fascinating. During my time there, I had the opportunity to take on many different roles, from the front desk to accounting, HR, and Safety Manager. I was also their self-appointed Director of Employee Happiness. One of the Founders and COO of that company was Rick Murdock, Autovol’s Co-Founder & CEO, and Prefab Logic’s Co-Founder and Chairman. In 2015, he sold his portion of that company and moved on to what we’re doing today. On his last day, he tapped on my desk as he walked out the door and said: “Hey, Sunshine, you’re coming with me.” And the rest is history. I was there at Prefab Logic’s beginning days, helping create the brand, values, and culture they have today, and I was there at Autovol’s conception, too. I was honored to give Autovol its name, design our logo, and drive culture. I am Solutioneer number two, after Rick. I collaborated with the first eight Solutioneers to determine what we stood for, how we appeared, and what we wanted to become through our vision, mission and values. Today, we are known for being a destination employer full of proud Americans innovating in construction in ways that haven’t been seen before. It’s been an incredible journey in this space.

Bill: How would you characterize your overall philosophy with respect to a company’s culture?

Merrick: The way you feel at work can ripple out into society in a positive way. A workplace culture can actually spread more light and love to the world, helping the battle against good and evil. That might seem like a lofty philosophy on culture, but we should aim high. A good or bad culture genuinely impacts people’s lives. We spend so much time in the workplace. People should be happy and fulfilled at work and feel like they fit in as the individuals they are.

Bill: In your opinion what makes an employee (or Solutioneer) as you have named them, want to go to work every day and sometimes even Saturday and Sunday?

Merrick: The people who surround us and the purpose of their work are significant factors in a person’s desire to work. Work-life balance matters, too. At Autovol, we intentionally designed the workweek to support family life, even providing Fridays off and three-day weekends as the norm. You might be more excited to go to work knowing you will have plenty of free time to recharge. There’s “light at the end of the tunnel every week.”

Bill: What has happened innovatively at Autovol, in the realm of employee engagement, because of your focus on the crucial role of building the proper culture?

Merrick: We have a “Solutioneer Intel Form” that tells us much about each Solutioneer. That helps us get to know them and celebrate who they are from day one. Another innovation I thought turned out pretty cool was the term “Solutioneer” I came up with. It allowed everyone to have freedom of thought, expecting them to innovate as Solutioneers. It’s a term of endearment and a name that lets everyone know they are part of a pioneering, innovating, and problem-solving team. I am proud to be a Solutioneer. It’s an innovation and movement that has a high level of belonging. It also empowers everyone at the point of use to bring forward ideas that will improve the things they know better than anyone else.

Bill: What was your biggest challenge at Autovol in terms of building a culture?

Merrick: Unwinding the ingrained habits that people previously experienced in other cultures. People get trained to stay in their lane and believe in limitations or “the way it’s always been done.” We must help them not fall into their old ways and take for granted that the old ways will work at Autovol. This can include the way we do work, as well as the way we treat and talk to each other. Also, our philosophy is to help people be leaders in every role…not just management roles.

Bill: What do you think the biggest mistake(s) offsite manufacturers make in terms of their company culture?

Merrick: Most manufacturers are looking for workers. We’re looking for a family member. That means they need to meet our existing family, and our family needs to meet them. That’s why our hiring process includes three phases to give everyone a chance to ensure it’s a comfortable, enjoyable fit. Culture is not a thing you do. It’s the way all of us behave and the company’s character. You can’t just grill some hotdogs and hamburgers and call it culture. It must be nourished by being genuine and appreciating the people you work with for who they are, minute by minute and day by day. Although having a cultural leader is beneficial, maintaining the culture is not one person’s job. It’s a team sport.

Bill: What is your approach to building a company culture that is true to the company’s mission?

Merrick: Everyone must align on the mission and the values we share. There needs to be a clear and inspiring vision that will make people want to band together and be passionate and proud about their work daily.

Bill: Tell us about your other interests and efforts currently outside your role as Chief Culture Officer at Autovol.

Merrick: I’m a full-time working Mom of a sweet and smart 13-year-old girl, and we have two adorable puppies. I enjoy traveling, extreme sports, and live music. I’m engaged in the community in many ways to evangelize our industry—locally in our community and nationwide at industry events. Besides Autovol, I lead culture efforts at Prefab Logic, Waypaver International, and my culture consulting company, Modular Maven.

I spend significant time working with youth throughout our valley, with a focus on building programs for off-site construction. Throughout the school year, I give many Autovol and Prefab Logic tours to 5th -12th grade students. Doing these things to help youth and grow our industry is something I’m proud to be part of. In 2015, I founded a non-profit, Dragonflybrary, that supports mental health awareness and suicide prevention, which I’m also very passionate about. Thanks for asking! 😊

Bill: What gives you the most satisfaction as you build a company culture?

Merrick: Knowing that we can positively impact someone’s life. By doing that, we often see that making a difference can ripple through our company, but just as important, it can spread far beyond our walls. We see it every day as people visit our company and leave inspired. I genuinely believe that the only way to build our industry is to remove the stigma many people have about working in a factory environment. We do this by giving people a mission, purpose, and career path. But more than that, we are creating a repeatable climate that is so attractive that it is a model for how to be a “destination employer.” A place that people want to work in and a place where people want to stay. By doing so, I believe our growing construction sector will appeal to younger generations, who will be enticed to want to be part of the movement. It’s satisfying to be helping drive the off-site industry mainstream. It’s also satisfying to have a hand in bringing people and robots together as a team in the construction industry, and see how exciting and empowering that is for our Solutioneers.

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Bill: In a few sentences, what advice would you give to any offsite manufacturing company or even other companies in other industries?

Merrick: Open your heart and genuinely care about the people building your company. Get to know them—their hopes, dreams, desires, and struggles. Do your best to support the whole human you’ve employed. It will affect you if you’re not taking action to ensure employees are engaged and satisfied. You’ll gain a reputation for being an excellent workplace by showing genuine care for those you employ. It’s hard to put a dollar amount into that type of recruiting.

Innovation isn’t restricted to manufacturing methods and materials. As Merrick exemplifies, innovation can and must be integrated into a company’s approach to establishing their organizational health. A final thank you to Merrick for helping spread the word.

Bill Murray, co-founder of Offsite Innovators, is a 40-year veteran in the Offsite industry. His goal is to assist in the growth of the industry by presenting and sharing innovation.

CLICK HERE if you would like to be interviewed about something innovative you have designed or are currently using.