The modular construction industry stands at a crossroads, with factories spanning a spectrum of types and ages. Each type faces unique challenges and opportunities as they navigate the shifting landscape of construction innovation, economic uncertainty, and sustainability demands.

This article delves into the five distinct types of modular factories, assessing their potential to effect change and achieve profitability over the next decade.

Photos – top – Signature Homes, above – Fading West

1. Older, Established, and Profitable Factories

These factories have honed their processes over decades, earning steady profits by sticking to tried-and-true methods. Their reluctance to stray from their traditional approaches stems from a desire to protect their financial stability and minimize risk.

Prospects for Change: While these factories have deep industry knowledge and established customer bases, their hesitance to adopt innovative technologies like automation or AI could hinder their competitiveness. As the construction industry evolves, these factories risk losing ground to more agile competitors that embrace change. However, their financial strength gives them the ability to experiment with gradual innovations, such as incremental updates to software systems or targeted pilot programs for new techniques.

Path to Profitability: To maintain profitability, these factories must balance tradition and innovation. The gradual integration of new technologies and processes, coupled with investments in employee training, can help them stay relevant without disrupting their core operations. Engaging with industry consultants to identify low-risk areas for improvement may also enhance their adaptability without significant disruption.

2. Old, Established, and Bordering on Profitability

These factories have survived for decades but struggle to achieve consistent profitability. Often resistant to change, they rely on outdated systems and are managed by leaders who are more focused on selling the business than revitalizing it.

Prospects for Change: Their unwillingness to modernize makes them unlikely drivers of industry-wide transformation. However, a strategic acquisition by a forward-thinking buyer could inject new life into these factories, enabling them to adopt modern practices and regain competitiveness. These factories also present opportunities for younger management teams who might see value in revitalizing underperforming assets.

Path to Profitability: For these factories, the key lies in finding buyers willing to invest in upgrades and new management. Partnerships with innovative startups or tech providers could also open pathways to profitability by reducing inefficiencies and expanding market reach. In the interim, these factories could explore niche markets or specialized services to stabilize their financial standing.

3. Newer Factories Built Within the Last Decade and Profitable

These factories represent the industry’s success stories, having navigated the complexities of modern modular construction to achieve profitability. They’ve built strong customer relationships and adopted more advanced systems and software.

Prospects for Change: Positioned as leaders in the modular industry, these factories are well-equipped to champion innovation. Their willingness to explore new technologies and methods makes them pivotal in reshaping the industry’s future. By leveraging their profitability, they can invest in sustainability initiatives, automation, and AI-driven solutions. These factories are also in a strong position to mentor or collaborate with less successful counterparts.

Path to Profitability: Maintaining their edge requires continuous innovation and responsiveness to market trends. These factories should focus on expanding their customer base, enhancing efficiency, and staying ahead of regulatory changes, particularly in energy and environmental standards. Developing proprietary systems or methods could also provide a competitive advantage and create new revenue streams.

4. Newer Factories Emulating Older Factories

These factories have attempted to replicate the success of established players by mimicking their processes and business models. However, many struggle to achieve the same level of success due to a lack of differentiation and adaptability.

Prospects for Change: Without a willingness to innovate, these factories are unlikely to drive significant change. Their rigid adherence to traditional practices places them at a disadvantage in a competitive landscape increasingly defined by agility and technological advancement. These factories often miss opportunities to address emerging market needs, such as sustainable building practices or customizable modular solutions.

Path to Profitability: To improve their chances, these factories must break away from emulation and forge their own identities. Investing in research and development, adopting modern systems, and aligning with forward-thinking industry partners can help them carve out a sustainable niche. Leadership changes or the introduction of innovation-focused teams could also be critical in driving their transformation.

photo – Autovol

5. Brand-New Factories

These factories, either recently built or still in the planning stages, represent the industry’s most ambitious ventures. Often founded by individuals with limited experience in modular production, these factories aim to revolutionize the industry with automation, robotics, AI, and cutting-edge ideas.

Prospects for Change: As potential disruptors, brand-new factories hold the greatest promise for driving innovation. Their focus on reshaping modular construction aligns with broader industry trends toward sustainability and efficiency. However, their lack of experience and the high cost of implementing advanced technologies pose significant risks. Navigating these risks requires strategic planning, access to capital, and partnerships with experienced stakeholders.

Path to Profitability: Success for these factories hinges on securing adequate funding, assembling skilled teams, and developing scalable business models. Collaborations with experienced consultants and partnerships with established players can help bridge the knowledge gap and mitigate risks. Early adopters of their innovative approaches could serve as case studies, building credibility and attracting further investment.

Key Industry Trends Shaping the Next Decade

Sustainability Pressures: The push for greener construction practices is accelerating, and modular factories must adapt. Profitable and newer factories are better positioned to embrace sustainable materials and processes, while older factories may struggle with the associated costs.

Economic Uncertainty: Global economic challenges will test the resilience of modular factories. Agile and innovative factories are more likely to weather economic downturns and capitalize on emerging opportunities.

Technological Advancements: Automation, robotics, and AI are transforming construction. Factories that invest in these technologies will gain a competitive edge, while those that resist may fall behind.

Workforce Challenges: The industry’s skilled labor shortage remains a critical issue. Modular factories must prioritize workforce development and explore automation to address this challenge.

Market Demand: As demand for affordable and sustainable housing grows, modular factories must adapt to meet diverse customer needs. Factories that can innovate quickly and efficiently will capture a larger share of this expanding market.

The future of modular construction depends on the ability of its factories to evolve. Old, established factories must overcome their resistance to change, while newer and brand-new factories must navigate the challenges of scaling and innovation. By embracing sustainability, technology, and workforce development, the industry can overcome economic uncertainties and drive lasting change.

Each type of factory will play a role in shaping the next decade of modular construction. The question is not whether the industry will evolve but how quickly and effectively these factories will adapt to secure their place in a rapidly changing world.

In an age where public figures often leave their mark through policy, power, or wealth, former President Jimmy Carter chose a different legacy—one built with his own hands, nail by nail, for those in need. His enduring partnership with Habitat for Humanity is more than just a chapter in his life; it’s a testament to his unwavering commitment to justice, compassion, and the dignity of a home.

Since leaving the White House in 1981, Carter’s post-presidency redefined what it means to serve. While many retreat into quiet retirement, he and his wife, Rosalynn, rolled up their sleeves and joined Habitat for Humanity, a global nonprofit organization that builds affordable housing for families in need. For over four decades, the Carters embodied the mission of Habitat—not just as figureheads but as volunteers who labored alongside others to make the dream of homeownership a reality for thousands.

The Carters’ hands-on involvement was more than symbolic. They participated in Habitat builds across 14 countries, working tirelessly on construction sites, often in grueling conditions. Whether it was hammering nails, painting walls, or engaging with the families who would soon call these houses their homes, the Carters brought unparalleled energy and humility to every project. Their presence inspired others—celebrities, political leaders, and everyday citizens alike—to join the cause, amplifying Habitat’s impact exponentially.

One of the most remarkable aspects of Carter’s work with Habitat is its longevity. Into his 90s, despite health challenges, Carter continued to show up on build sites, even after suffering injuries or illnesses that might have sidelined others. His determination reflected a deeply held belief: everyone deserves the stability and security of a home. For Carter, housing was not just a basic need—it was a human right.

The results of his advocacy are staggering. Since its founding in 1976, Habitat for Humanity has built or repaired over 39 million homes worldwide, and the Carters’ involvement helped bring unprecedented visibility to the organization. Their efforts mobilized volunteers, raised funds, and galvanized communities to address housing inequities head-on.

But Carter’s impact goes beyond the numbers. Through Habitat, he highlighted the transformative power of homeownership—not just for individuals and families but for entire communities. A safe and stable home provides the foundation for education, health, and economic opportunity, creating ripples of positive change that can last for generations.

For Carter, this work was never about accolades or recognition. It was about faith in action, a reflection of his belief in service to others as a core tenet of his life. Habitat builds became a physical manifestation of his values—a tangible expression of hope and solidarity with those in need.

As we reflect on Carter’s legacy, it’s impossible not to feel inspired by his unwavering dedication to making the world a better place, one home at a time. His work with Habitat for Humanity is a shining example of how one person’s commitment can ignite a global movement. Carter didn’t just talk about compassion—he lived it, showing us all that leadership is measured not by titles but by the lives we touch.

Former President Jimmy Carter and wife Rosalyn

Jimmy Carter may have been a one-term president, but his post-presidential years cemented him as a lifelong servant of humanity. Through Habitat for Humanity, he leaves behind more than homes—he leaves a legacy of hope, resilience, and the enduring belief that we are all better when we build together.

I find the idea of Canada becoming the 51st state of the United States, as suggested by Kevin O’Leary during a recent interview, as bold and provocative. While this concept remains speculative, it opens a fascinating window into the potential implications for the offsite and modular construction industries.

Top and above photos – BECC

One intriguing twist in this hypothetical scenario is the possibility of the U.S. adopting the National Building Code of Canada (NBC) as the basis for a unified national code. Could this lead to a new era of harmonized regulations, economic growth, and innovative collaboration?

Harmonizing Building Codes: A Game-Changer for Construction

Currently, the U.S. and Canada operate under different building codes. The U.S. primarily uses the International Building Code (IBC) or state-specific regulations, while Canada’s NBC provides a uniform framework across provinces. If Canada were to become a U.S. state, adopting the NBC as the foundation for a unified North American building code could simplify construction practices across the continent.

Photo – Assembly Corp.

The NBC is renowned for its clarity, adaptability to regional climates, and focus on sustainability. By integrating it into the U.S., modular construction companies could benefit from standardized regulations, eliminating the need to navigate a patchwork of state and local codes. This harmonization could:

Streamline Cross-Border Projects: A unified code would reduce compliance hurdles for companies operating in both countries.

Encourage Innovation: Consistent regulations could incentivize investment in advanced construction techniques, such as robotics and 3D printing, without worrying about regional discrepancies.

Boost Sustainability: The NBC’s emphasis on energy efficiency and environmental considerations could set a higher standard for green building practices across North America.

photo – FERO International Inc.

Economic Integration: Opportunities and Challenges

Canada joining the U.S. would create one of the largest unified construction markets in the world. The modular industry could experience both opportunities and challenges in such an environment.

Opportunities:

Market Expansion: Canadian modular manufacturers would gain seamless access to the vast U.S. housing market, presenting enormous growth potential.

Labor Mobility: A unified labor pool could help address skilled labor shortages that have long plagued the construction sector.

Increased Investment: U.S. companies might be more inclined to invest in Canadian modular factories, given the absence of trade barriers and currency fluctuations.

Challenges:

Increased Competition: U.S. modular firms would enter Canadian markets, potentially squeezing smaller, local players.

Cost Adjustments: Canadian companies might need to adapt to different wage structures, healthcare costs, and tax policies.

Adopting Canadian Practices: Sustainability and Innovation

One of Canada’s strengths lies in its focus on sustainability and innovation in construction. Modular housing in Canada often incorporates features such as net-zero energy systems, advanced insulation techniques, and designs suited for extreme climates. If the U.S. adopted these practices alongside the NBC, it could elevate construction standards across the board.

For example:

Energy Efficiency: Modular homes built to NBC standards could dramatically reduce energy consumption, aligning with global climate goals.

Resilient Designs: Adapting Canadian techniques for colder climates could benefit northern U.S. states, while milder designs from southern states could find use in Canada’s temperate regions.

Sustainability Leadership: By embracing the NBC, the U.S. could position itself as a global leader in sustainable construction practices.

Photo – ROC Modular

Logistics and Infrastructure: Laying the Groundwork

Integrating Canada into the U.S. would require significant investments in infrastructure. Transportation of modular units and construction materials over long distances has always been a logistical challenge for the industry. Improved infrastructure across a unified North America could:

Reduce Costs: Enhanced rail and road networks would lower transportation expenses for modular factories.

Expand Reach: Factories located near the U.S.-Canada border could serve both markets more efficiently.

Encourage Hub Development: Strategic locations could emerge as manufacturing and distribution hubs, boosting local economies.

Unified Currency: Stabilizing Costs

Another major shift would be the adoption of the U.S. dollar in Canada. For modular manufacturers, this could stabilize costs for materials and labor by eliminating currency exchange risks. It could also simplify cross-border transactions and make budgeting more predictable for international projects.

Innovation Through Collaboration

Combining the resources and expertise of both countries could spur groundbreaking advancements in modular construction. Research and development efforts might focus on:

Robotics and Automation: Joint ventures could accelerate the adoption of automated production lines, reducing costs and increasing efficiency.

3D Printing: Integrating Canadian and U.S. expertise could make large-scale 3D-printed housing a viable solution for affordable housing.

AI and Smart Technologies: Collaborative efforts could lead to smarter, more connected modular homes.

Cultural and Policy Considerations

Despite the potential benefits, merging two distinct nations into a single entity would not be without challenges. Political, cultural, and social differences could create friction in aligning construction practices and policies.

For instance:

Regulatory Resistance: Some U.S. states might resist adopting the NBC, viewing it as a departure from established norms.

Cultural Identity: Canadians’ strong sense of national identity might lead to pushback against Americanizing their construction industry.

Environmental Policies: Reconciling Canada’s stringent environmental standards with less uniform U.S. practices could be contentious.

photo – Quality Homes

The Bigger Picture: Building for the Future

Ultimately, the idea of Canada becoming the 51st U.S. state raises as many questions as it does possibilities. For the offsite and modular construction industries, the implications could be transformative. A unified building code, particularly one based on Canada’s NBC, might serve as a catalyst for innovation, efficiency, and sustainability.

But challenges abound. From cultural resistance to economic adjustments, navigating this new reality would require careful planning and collaboration. For industry leaders, the potential rewards of a unified market and regulatory framework make the hypothetical scenario worth considering—even if it remains firmly in the realm of speculation.

Would adopting the National Building Code of Canada truly unify North American construction practices? Could it drive the offsite and modular construction industries to new heights? Or would the complexities of integration outweigh the benefits? These are questions that may never need definitive answers but are worth pondering as we envision the future of construction.

As the holiday season embraces us with its spirit of giving and compassion, a heartwarming story is unfolding in North Carolina, where Lowe’s is teaming up with builders, volunteers, and implementing offsite construction to deliver hope in the form of tiny homes. These homes are not just any temporary shelters—they are a testament to the power of innovation, community collaboration, and the versatility of offsite modular building techniques.

In the wake of Hurricane Helene’s devastating impact on western North Carolina, hundreds of families were left without homes. For many, the challenge was not just rebuilding but finding immediate, safe, and sustainable shelter. Enter Lowe’s, and their version of offsite modular, with an ambitious plan: construct and donate 100 tiny homes to provide relief just in time for Christmas.

Modular Construction: The Hero Behind the Scenes

What makes this initiative stand out is its use of modular construction methodology. Each tiny home, built offsite in a centralized warehouse in Charlotte, embodies the principles of efficiency and quality that modular construction offers. By pre-fabricating these homes in a controlled environment, the construction team could streamline the process, ensuring consistent quality while drastically reducing the build time. Let’s hear it for this “pop up” modular factory!

Each unit measures 8 feet by 16 feet and is designed to accommodate a family of four. Despite their compact size, these homes are fully equipped with essential amenities, including a kitchen, bathroom, sleeping quarters, and hookups for electricity. Lowe’s design team went a step further, furnishing and decorating the interiors to create a warm, inviting space that feels like home—a critical factor for families facing the upheaval of disaster.

The Speed of Modular Innovation

One of the most remarkable aspects of this project is the speed at which it was executed. Once Lowe’s Senior Director of Community Relations, Julie Yenichek, proposed the idea, she quickly brought in Charlotte-based builder Danny Kelly to develop a prototype. Thanks to the modular construction approach, the team could begin producing homes almost immediately, with volunteers and builders working in tandem to meet an ambitious timeline.

NASCAR haulers, another symbol of speed, played a pivotal role in transporting these homes to affected areas in Avery and Buncombe counties. This seamless coordination ensured that many families could move into their new homes before the holidays, providing them with a safe haven during the cold winter months.

A Gift of Shelter and Hope

For families like Kathy Graham’s, these tiny homes are more than just a roof over their heads—they are a lifeline. Kathy, whose property was ravaged by the hurricane, shared her heartfelt gratitude: “Thank God. I got my new home, my tiny home. It’s awesome. It’s gorgeous. I can’t believe it. I can’t even say how much I appreciate it. The Lord has answered my prayers, honestly.”

Such stories underscore the profound impact that innovative building methods like modular construction can have, especially in times of crisis. The homes offer not only shelter but also a sense of normalcy and stability, allowing families to remain close to their communities while rebuilding their lives.

A Collaborative Effort

This project was made possible by an extraordinary collaboration between Lowe’s, local builders, and organizations like Habitat for Humanity and the Home Builders Association of Greater Charlotte. Volunteers from all walks of life joined hands, driven by the shared goal of bringing relief to those in need. Lowe’s contributed tools, materials, and a $12 million pledge toward hurricane relief efforts, underscoring its commitment to community resilience.

Lessons for the Industry

For the construction industry, this initiative serves as a powerful case study in the application of modular construction for disaster relief. The ability to pre-fabricate homes offsite and transport them quickly to affected areas demonstrates the efficiency and adaptability of this building method. It highlights how modular construction can go beyond its traditional use in residential and commercial projects to address urgent humanitarian needs.

Moreover, the project illustrates how innovation and compassion can work hand-in-hand to solve real-world problems. By thinking outside the box—or in this case, building inside a warehouse—Lowe’s and its partners have set a precedent for how modular construction can be leveraged in future disaster recovery efforts.

The Spirit of Giving

As we celebrate this season of generosity and goodwill, the story of these tiny modular homes reminds us of the transformative power of community and innovation. From the builders who poured their expertise into every detail to the volunteers who gave their time, this project embodies the true meaning of the holidays.

For families receiving these homes, Christmas brings not just shelter but a renewed sense of hope and belonging. And for the construction industry, it’s a moment to reflect on how our tools, methods, and creativity can make a lasting difference.

This Christmas, the tiny homes of North Carolina are a big reminder: when we combine the best of our skills with the best of our hearts, we can rebuild lives—one modular home at a time.

https://www.yahoo.com/news/lowe-giving-away-tiny-homes-162704180.html

The mother of innovation is often considered to be creativity. While necessity drives invention as a response to a specific need, innovation stems from the creative process of thinking beyond the current constraints and imagining new possibilities. Creativity allows for the development of novel ideas and approaches, leading to innovative solutions that can transform industries, markets, and society. Creativity fuels the exploration and experimentation necessary to bring innovative concepts to life.

Two seasoned professionals from the construction industry have unveiled a brand-new website dedicated to showcasing the trailblazers and groundbreaking advancements in offsite construction. This site will feature engaging interviews with key players and highlight remarkable achievements in innovative products and solutions. Additionally, they’ll explore what’s on the horizon for offsite construction and beyond, offering insights into potential game-changers for the industry.

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Gary Fleisher, known as “The Modcoach,” is a prominent figure in the modular construction industry. He has an extensive background that spans multiple roles within the construction and housing sectors. Fleisher began his career as a realtor and later managed large lumber and building material yards, eventually becoming a sales manager for a major home builder. His experience includes working as a general contractor and a sales representative for modular and manufactured housing factories​.

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Bill Murray is a seasoned sales and manufacturing executive in the Modular Home/Systems Built Industry. His extensive experience encompasses total Profit & Loss (P&L) responsibility, Sales Management, and Production Management for custom home and commercial structures. Additionally, he has provided professional consulting services to prospective owners, assisting with due diligence and navigating growth and expansion scenarios. His expertise makes him a valuable resource for companies looking to optimize their operations and achieve strategic goals within the modular construction sector.

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