Walk into almost any offsite factory and ask who’s really in charge of operations, finance, or long-term strategy, and you’ll usually get a confident answer followed by a quiet reality check. The titles are there, the responsibilities are assigned, but the experience behind them is often still developing. That’s not a knock on anyone—it’s simply how this industry has grown up.

We promote from within, we wear multiple hats, and we figure things out as we go. It’s part of the culture, and in many ways, it’s admirable. But it also creates blind spots that don’t show up until margins start slipping or production slows down for reasons nobody can quite explain.

Enter Fractional Management—Without the Fancy Label

Fractional management is a simple concept wrapped in a slightly pretentious name. It means bringing in an experienced executive—COO, CFO, or sales leader—on a part-time or project basis instead of hiring them full-time. You get the expertise without committing to a full-time salary and benefits package.

In plain terms, it’s like renting experience instead of buying it. You don’t need that executive sitting in an office five days a week; you need their brain applied to your biggest problems at the right time.

Why This Model Is Quietly Taking Off

In other industries, especially tech and advanced manufacturing, fractional executives are no longer unusual. Companies have realized they don’t need a $200,000-a-year executive to solve problems that require only a few days a month of focused expertise. They need precision, not presence.

Offsite construction, however, has been slower to adopt this mindset. Many owners still think in terms of full-time hires or going it alone, with very little middle ground in between.

The Places Where It Fits Like a Glove

The most obvious place fractional leadership shines is in operations. A factory struggling with bottlenecks, inconsistent quality, or scheduling chaos doesn’t necessarily need a permanent COO. It needs someone who has seen these problems before and knows how to fix them without turning the place upside down.

Financial management is another area where the gaps are often invisible until they become painful. Many factories are profitable on paper but constantly tight on cash, unsure where margins are being lost or why projects feel harder to complete than they should. A fractional CFO can step in, connect the dots, and bring clarity without becoming a permanent line item.

Sales and marketing is where things often get even murkier. Some factories rely on a single salesperson, others rely on relationships, and a few rely on hope. A fractional sales leader can build structure, define a real pipeline, and help companies stop chasing every opportunity that comes through the door.

Why Offsite Has Been Slow to Catch On

Part of the hesitation comes from pride, and part of it comes from habit. Factory owners are used to solving problems internally, often with limited resources, and there’s a belief that bringing in outside help signals weakness or loss of control. In reality, it usually signals the opposite.

There’s also a misunderstanding of what fractional leadership actually is. It’s not a consultant dropping off a report and disappearing. When done right, it’s hands-on, practical, and focused on results, not theory.

The Catch Nobody Talks About

Not every fractional executive is created equal, and this is where companies can get burned. Some have real-world experience running operations, managing teams, and dealing with the daily realities of production. Others have spent more time advising than doing.

The difference shows up quickly. One delivers measurable improvements, while the other delivers well-written recommendations that never quite make it onto the production floor.

Bill Murray – Fractional Executive Leadership for Offsite Construction

Bill Murray brings over 40 years of hands-on operational management experience in the modular and offsite construction industry, offering companies access to seasoned executive leadership on a fractional basis. His career began in the field as a contractor and builder, giving him a ground-level understanding of construction that continues to shape his practical, results-driven approach today.

Transitioning into the manufacturing side of the business, Bill quickly advanced through the sales ranks before stepping into senior leadership roles, ultimately serving as General Manager and COO, overseeing multi-plant operations. His experience spans the full lifecycle of offsite construction, from production and sales to strategic planning and operational execution.

As a fractional executive, Bill works with owners, prospective factory startups, and builder-developers who are evaluating or expanding into offsite construction. He provides high-level guidance without the overhead of a full-time executive, helping companies navigate critical decisions, avoid costly missteps, and improve operational performance.

Contact Bill: [email protected]

Bill’s advisory and consulting work has taken him across the United States, into Mexico, and on international assignments, giving him a broad perspective on different markets, production models, and business challenges. Whether stepping in as a fractional COO, strategic advisor, or operational guide, Bill brings real-world experience and practical insight to every engagement.

Where It Makes the Most Sense

Fractional management works best in moments of transition. Startups trying to get their footing, factories looking to scale, and companies feeling that slow, steady erosion of profit are all prime candidates. These are the times when experience matters most and mistakes cost the most.

It also works for owners who recognize that they don’t need to have all the answers, but they do need access to them. That mindset alone often separates companies that grow from those that stall.

Where It Doesn’t Work

No outside executive, fractional or otherwise, can fix a company that isn’t willing to change. If leadership is resistant, defensive, or simply going through the motions, even the best advice will sit unused.

Fractional management is not a shortcut or a magic fix. It’s a tool, and like any tool, it only works when someone is willing to use it properly.

Modcoach Observation

Most offsite factories don’t fail because they lack effort or ambition. They struggle because they wait too long to bring in the experience they need, hoping to grow into it instead of borrowing it when it matters most.

Fractional management isn’t about admitting you need help. It’s about recognizing that in an industry this complex, the smartest move you can make is knowing exactly when to bring the right expertise through the door—and when to let it go.

Photo – Autovol

Fourth in a series on improving the Bottom Line by 1% and more (For a list of all the articles, go to the end)

I’ve talked to more than a few factory owners over the years who all say the same thing in slightly different ways. Sales are steady. Backlogs look decent. The plant is busy. And yet, at the end of the quarter, the profits aren’t where they should be.

No one can point to a single disaster. No massive estimating mistake. No catastrophic project failure. Just… less money than expected.

That’s when I usually bring up something most people don’t want to hear about because it sounds too simple to be dangerous.

Overhead creep.

The Slow Leak Nobody Sees

Overhead creep isn’t a line item. It doesn’t show up as a glaring red flag on a financial report. It’s not a bad investment or a failed expansion. It’s the accumulation of small decisions, made by good people, for reasonable reasons, that slowly chip away at your margin.

It happens quietly. A design tweak here. A favor for a builder there. An extra step on the production line that was supposed to be temporary. A service call that “just needed to get done.”

Individually, none of them seem worth talking about. Collectively, they can take one percent—or more—right off your bottom line. And most factories never see it coming.

The 1% Illusion

Let’s talk about that one percent.

If your factory does $20 million a year, 1% is $200,000. That’s not a rounding error. That’s real money. That’s additional staff, upgraded equipment, or pure profit that should have been there.

But here’s the problem. One percent doesn’t feel urgent. It sounds small. Manageable. Almost not worth the argument it might take to stop it. So the decisions that create it get justified.

“It’s just this one job.”

“We need to keep this builder happy.”

“We’ll make it up on the next project.”

You almost never do.

Where It Starts—and How It Grows

Overhead creep doesn’t live in one department. It spans your entire operation, and every department contributes in its own way.

Design Favors That Become Expectations

It often starts in design. A builder asks for a small change. Nothing major. The design team accommodates it, maybe without fully pricing the additional time. Then it happens again. And again.

Before long, those “one-off” details aren’t one-off anymore. They become expected. Your design department is doing more work for the same revenue, and nobody has formally acknowledged the shift.

Sales Promises That Production Pays For

Sales wants to close deals. That’s their job. So they add a feature here, smooth over a concern there, and sometimes stretch what the factory can realistically deliver without added cost.

Production inherits those decisions.

Now the floor is figuring out how to build something that wasn’t fully accounted for. It takes longer. It disrupts flow. It introduces rework. And the margin that looked fine on paper starts disappearing before the first module is finished.

Production Workarounds That Become the New Normal

Walk through almost any factory and you’ll find them—those extra steps that weren’t part of the original process. Someone added them to solve a problem. A good intention. A quick fix. But no one ever removed them.

So now every module carries a little extra labor. A few extra minutes here and there. Multiply that across hundreds or thousands of modules, and you’ve created a permanent drag on efficiency.

Service and Warranty That Never Feed Back

This one has been a problem for decades. Something goes wrong at the jobsite. A crew is sent out. The issue gets fixed. Everyone moves on. Except the root cause was never addressed.

Design doesn’t hear about it. Production doesn’t change anything. So the same issue happens again on the next project. And the next. You’re not just fixing problems. You’re paying for the same mistake over and over again.

Administrative Growth Without Accountability

Then there’s the overhead you can see—but don’t question.

An extra position gets added to “help.” Another software subscription gets approved. Meetings get longer and more frequent, but not necessarily more productive. None of these decisions feel excessive on their own. But together, they quietly increase your fixed costs without improving output.

Why It Continues

The reason overhead creep is so dangerous is because no one owns it. Each department has a valid explanation for what they’re doing. Design is helping sales. Sales is supporting revenue. Production is solving problems. Service is keeping customers happy. Individually, they’re all right. Collectively, they’re bleeding margin.

Leadership often focuses on the big picture—growth, backlog, new opportunities—while these small leaks go unchecked. And culturally, most factories avoid pushing back because they don’t want to create friction internally or with their customers.

So the creep continues.

The Compounding Effect

One small inefficiency doesn’t matter much. Ten starts to get noticeable. Fifty begins to hurt. A hundred, and you’re working just as hard as ever, maybe harder, but the financial results don’t reflect it.

Factories rarely lose money on a single big event. They lose it slowly, through a series of small, accepted compromises.

Recognizing the Early Signs

You can usually spot overhead creep before it becomes a crisis—if you’re willing to look.

Margins begin to decline even though pricing hasn’t changed. Rework becomes more common but is treated as routine. Design teams are busier than ever, but not generating additional revenue. Service calls feel like part of the normal workflow instead of exceptions. And the most telling sign of all?

“We’re busier than we’ve ever been, but we’re not making the money we should be.”

Plugging the Leaks

The solution isn’t complicated, but it does require discipline. It starts with paying attention to the small things you’ve been ignoring. Questioning processes that have quietly changed over time. Making sure every change, every favor, every added step is either justified or eliminated.

It means closing the loop between the jobsite and the factory so problems get fixed once, not repeatedly. It means holding the line on pricing and expectations, even when it’s uncomfortable.

Most of all, it means someone has to take ownership of protecting margin—not just chasing revenue.

Modcoach Observation

Overhead creep doesn’t show up with a warning label. It builds quietly through decisions you barely remember making and processes nobody ever revisited. By the time you feel it, you’re not asking what went wrong—you’re asking where the profit went. If any part of this article sounds familiar, it’s probably already costing you more than you think.

This is exactly the kind of problem Bill and I work through with factory owners—finding the leaks, challenging the assumptions, and helping you get that lost 1% back before it becomes 3% or 5%. If you’re seeing the signs, don’t wait for the next quarterly surprise. Reach out. This is fixable—but only if you decide to fix it.

Other articles in this series:

When Developers and Builders Go Modular, the Learning Curve Is Steeper Than Expected

The Offsite Factory Warranty Loop That Never Closes

The Quiet Profit Killer: “When Factory Quality Slips Before It Ships”

If you are serious about continuous improvement, reach out to us via email.  We’ll schedule a brief phone call to explore the possibilities.  Contact Gary at: [email protected], contact Bill at:[email protected]. We’ll respond promptly and schedule a brief call.

Every month in the offsite construction world, I hear about another promising new idea. Someone has developed an app that will streamline scheduling, a machine that promises faster panel production, or a digital tool that claims to simplify design coordination between factories and builders.

The process almost always starts the same way. One person—or maybe two or three partners—becomes convinced they’ve discovered the next breakthrough. They sketch out the concept, begin building a prototype, test an early version of their software, or casually run the idea past a few friends.

Then comes the moment when they decide it’s ready for the market.

And that’s where things often begin to unravel.

Not because the idea is bad. In fact, many of these ideas are genuinely innovative. The problem is that between the original spark of inspiration and the launch of the business, too many critical questions were never asked—and even more were never answered.

That’s where bringing in an advisor early in the process can make the difference between becoming another forgotten startup and building something that actually survives in the real world.

Advisor vs. Consultant: A Difference Most Startups Miss

Many entrepreneurs assume they need a consultant. Consultants are typically hired to solve a specific problem. They arrive with a defined assignment—optimize a process, write a marketing plan, redesign a workflow—and when the job is done, they leave.

An advisor plays a very different role.

Advisors aren’t there to execute tasks. They’re there to challenge assumptions. They ask uncomfortable questions, connect dots the founders didn’t see, and help bridge the gap between what the startup team knows and what they don’t yet realize they need to know.

In many cases, the advisor’s most valuable contribution is a simple but brutally honest observation:

“Your idea, as you envision it today, either won’t sell right out of the box—or it won’t scale.”

That kind of feedback can save years of frustration and hundreds of thousands of dollars.

1. The Industry Reality Check

Offsite construction is a specialized industry with its own culture, production methods, regulatory hurdles, and financial pressures. Many startups underestimate how different it is from traditional tech or manufacturing ventures.

An advisor with real industry experience can quickly identify whether a new product or system actually fits the way factories operate. What looks brilliant on paper may be completely impractical on a production line that already runs on razor-thin margins and tight schedules.

2. The Market That Doesn’t Exist Yet

Many startups build solutions for a market that should exist—but doesn’t.

An advisor forces founders to answer tough questions:

Who will actually buy this?
Who controls the purchasing decision?
And how long will it take before the industry is ready to adopt it?

Those answers often reshape the entire go-to-market strategy.

3. The Scalability Illusion

A prototype that works in a lab or on a single job site doesn’t automatically translate into something that can be produced, sold, and supported at scale.

Advisors frequently spot scaling problems early. Maybe the system requires too much customization. Maybe it depends on skilled labor that’s already in short supply. Or maybe the economics only work at volumes the startup may never reach.

Better to discover those issues before the company invests heavily in the wrong direction.

4. The Missing Business Model

This is one of the most common gaps I see.

Many founders focus intensely on the product but spend very little time designing the business around it. Pricing, support, distribution, installation, training, warranties—these aren’t small details. They determine whether the idea becomes a viable company or just an interesting invention.

An experienced advisor helps fill in these blanks before they become expensive mistakes.

5. The Network Gap

In offsite construction, relationships matter. Factory owners, developers, engineers, lenders, and code officials all play a role in whether a new idea gains traction.

Advisors bring more than opinions—they bring networks. A well-placed introduction can open doors that might otherwise remain closed for years.

This is one reason why platforms like Offsite Innovators exist: to spotlight emerging technologies and connect innovators with the people who can help move their ideas forward.

6. The Hard Questions Nobody Wants to Ask

Startup teams are usually optimistic by nature. That optimism is necessary—but it can also blind founders to serious weaknesses in their plan.

An advisor’s job is to ask the questions others avoid:

What happens if adoption takes five years instead of two?
What if the first factory says no?
What if your competitors copy the idea faster than you expected?

These questions aren’t meant to discourage founders. They’re meant to strengthen the idea before the real world starts testing it.

The Value of Experience

The offsite construction industry is filled with innovators, and new ideas are essential if we want to build housing faster, smarter, and more affordably.

But ideas alone don’t build companies.

The startups that succeed are usually the ones that bring experienced voices into the room early—people who have already seen what works, what fails, and what pitfalls lie ahead.

Through our work and the conversations we feature on Offsite Innovators, we regularly meet entrepreneurs with exciting concepts. Some are already on the path to success. Others simply need guidance to close the gap between inspiration and execution.

In many cases, the difference between an idea becoming another also-ran or becoming a real industry breakthrough comes down to one simple decision:

Did they bring in the right advisor early enough?

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The Modcoach Observation

Great ideas are common in offsite construction. What’s rare are founders who are willing to let someone challenge those ideas before they go to market. The smartest innovators I’ve met aren’t the ones who believe their idea is perfect—they’re the ones who invite experienced advisors to poke holes in it until it becomes strong enough to survive the real world.

Gary Fleisher—known throughout the industry as The Modcoach—has been immersed in offsite and modular construction for over three decades. Beyond writing, he advises companies across the offsite ecosystem, offering practical marketing insight and strategic guidance grounded in real-world factory, builder, and market experience. 

[email protected]

The View From My Windshield

For years, I’ve driven past empty malls, dark office towers, and logistics buildings that look like they’re waiting for something to happen. In many cities, they sit quietly on valuable land while local leaders hold meetings about the housing shortage. It’s almost surreal. On one side of town, families can’t find affordable housing. On the other side, millions of square feet of real estate sit idle. The obvious question is finally being asked: Why aren’t we turning these buildings into homes?

From Empty to Opportunity

The answer is that we are—slowly. The trend has a formal name: adaptive reuse. It includes converting offices, retail centers, warehouses, schools, hotels, and churches into housing. Since the pandemic, the number of projects has surged. Remote work left downtown towers half empty. E-commerce changed retail patterns. Some logistics space is now underutilized. Meanwhile, housing demand has only grown stronger. Developers, cities, and investors are now looking at these abandoned or underperforming properties as opportunities rather than liabilities. For the first time in decades, adaptive reuse has moved from being a niche experiment to a mainstream strategy.

Not a Silver Bullet

But before we start celebrating, let’s be honest. This isn’t a silver bullet. Some projects are wildly successful. Others stall, collapse, or never get past the feasibility study. The difference between success and failure is usually not the building itself—it’s the early decisions. When the layout, structure, and location align with residential needs, the results can be impressive. Downtown revitalization happens. Communities regain energy. Affordable and workforce housing is created faster than ground-up construction. But when those factors don’t line up, costs explode and lenders run for the exits.

Design Realities Nobody Talks About

One of the biggest challenges is that most buildings were never designed to be homes. Office buildings, for example, often have deep floor plates. That means the center of the building has little or no natural light, which is a problem when you want apartments. Structural columns may be spaced in ways that limit unit design. Mechanical systems need complete replacement. In some cases, it’s cheaper to tear the building down and start over. That’s not what city leaders want to hear, but it’s the reality developers deal with every day.

The Financing Wall

Financing is another major obstacle. Traditional lenders still view adaptive reuse as risky. Construction costs are harder to predict. Unexpected structural issues are common. Zoning and code barriers can stop a project long before the first permit is issued. Local politics, community opposition, and lengthy approvals add time and uncertainty. In an industry that already operates on thin margins, those risks can kill deals quickly. It’s no surprise that many announced projects never move forward.

Malls and Warehouses: The Next Frontier

And then there are malls and warehouses—the next frontier. Across North America, there are hundreds of underperforming shopping centers and large-format retail sites. Some have already been redeveloped into mixed-income housing, walkable communities, and neighborhood centers. These projects have the potential to create entire new districts rather than just apartment buildings. Imagine turning a failing mall into housing, medical services, childcare, retail, and green space. When done well, the results can be transformative.

Why It’s So Hard to Get Right

But here again, the reality is complicated. Many malls are located far from public transit. They were designed for cars, not people. Infrastructure upgrades are expensive. Schools, utilities, and transportation systems must be expanded. Community resistance can be strong. People who oppose density suddenly become experts in zoning, traffic studies, and environmental reviews. The same communities that demand affordable housing often resist the changes required to make it happen.

Momentum Is Building

Despite all of this, the momentum is real. Cities are offering tax incentives, zoning changes, and faster approvals. Public-private partnerships are becoming more common. Nonprofits and faith-based organizations are stepping in, unlocking land that has been underused for decades. The private sector sees opportunity. Investors see long-term value. And younger generations, who are struggling the most with housing affordability, are more open to creative solutions.

Where Offsite Construction Fits

This is where the conversation gets interesting for the offsite and production construction industry. Adaptive reuse projects demand speed, cost certainty, and risk reduction. They require precision planning, early collaboration, and strong integration between design and manufacturing. In other words, they demand the very strengths that offsite construction has been promising for years.

Yet many developers entering adaptive reuse have little understanding of offsite methods. They know land. They know finance. They know entitlement. But they often do not know how to evaluate factory-built solutions, when they make sense, or how to structure projects to take advantage of them. The result is missed opportunities. Projects that could be faster and more predictable remain stuck in traditional processes.

The Opportunity Hiding in Plain Sight

This disconnect may be one of the largest untapped opportunities in the industry today. Adaptive reuse is not just about recycling buildings. It’s about rethinking how housing is delivered. It’s about integrating design, engineering, and manufacturing from the beginning. It’s about reducing risk and improving outcomes. Most importantly, it’s about aligning incentives so that every stakeholder benefits.

A Bigger Lesson for the Industry

There is also a deeper lesson here. For decades, the housing crisis has been framed as a supply problem, a labor problem, a zoning problem, or a financing problem. The truth is that it is all of these at once. Adaptive reuse doesn’t eliminate those challenges, but it forces collaboration in ways traditional development often avoids. When a project requires coordination between public agencies, developers, manufacturers, and communities, the industry either evolves—or the project fails.

The Turning Point

The irony is that the solutions have been sitting in plain sight. Empty buildings are everywhere. The need for housing has never been greater. Technology and manufacturing capabilities have advanced dramatically. The question is no longer whether adaptive reuse can work. The question is whether the industry is willing to change fast enough to make it scale.

If the answer is yes, abandoned malls and empty offices may become symbols of a turning point in how we build and deliver housing. If the answer is no, they will remain what they are today—silent reminders that knowing what to do and actually doing it are two very different things.

If you’d like to explore this possibilty for yourself, connect with me today.

Bill Murray, Co-Founder of Offsite Innovators

Ribal Zebian

I often hear about someone—or some company—that has a new idea to improve, restart, or outright fix a problem in construction. Every time I hear that word, new, I can’t help but smile. Not because I’m cynical (well, not entirely), but because “new” has become one of the most overused words in our industry. It’s so overused that the moment it’s spoken, my mind immediately jumps to the same two questions:
How long will this take to fail?
And on rare, glorious occasions: Will this actually work?

Construction has a long memory. It may not always look that way, but it remembers. It remembers what worked, what didn’t, and what sounded brilliant in a conference room but died quietly on a production line somewhere between Tuesday morning and the first broken fastener. That’s why “new” is such a loaded word. Most of the time, it isn’t really new at all.

Over the years, I’ve noticed that new ideas in construction tend to fall into two very distinct categories. Understanding which category you’re dealing with can save you a lot of time, money, and embarrassment.

New Idea #1: “It’s New to Me”

The first type of “new” usually comes from someone already inside the industry. These ideas are often introduced with genuine enthusiasm and good intentions. The person presenting it truly believes they’ve stumbled onto something groundbreaking.

In reality, what they’ve created isn’t new—it’s an evolution.

That’s not a bad thing. In fact, most real progress in construction comes from evolution, not revolution. Someone sees a problem, remembers ten years of dealing with that problem, and figures out a slightly better way to handle it.

Take automated manufacturing equipment as an example. A machinery manufacturer announces a new automated table with built-in AI responders that can detect imperfections down to one millimeter. That sounds impressive—and it is. But it isn’t new. It’s an improvement. A meaningful one, perhaps, but still part of a long, steady march toward better accuracy, better consistency, and fewer human errors.

The real questions don’t start with Is it new?
They start with:
Will it survive the production line?

Because that’s where construction ideas go to be tested. Not in brochures. Not in PowerPoint decks. And certainly not in press releases. They get tested at 6:30 a.m. on a Monday when the line is already behind schedule, the crew is short two people, and someone just spilled coffee on the control panel.

Even if the technology works exactly as promised, there’s another hurdle: Will anyone actually want it?
Does it save time?
Does it reduce labor?
Does it lower costs or increase margins in a way that makes sense?

If the answer to those questions isn’t clear, even the smartest improvement will struggle. Construction doesn’t reward cleverness for its own sake. It rewards results.

New Idea #2: “This Will Change Everything”

The second type of “new” is far more entertaining—and far more dangerous.

This version usually comes from someone with experience in a similar industry. Automotive. Aerospace. Advanced manufacturing. Sometimes tech. They look at construction and immediately see inefficiency, fragmentation, and chaos. And they’re not wrong.

The problem is what comes next.

They become convinced that their idea—borrowed, adapted, or reimagined from their previous industry—is going to revolutionize offsite manufacturing. They pitch investors. They raise capital. They land glowing write-ups in industry publications. They appear on podcasts, host webinars, and speak confidently about “transforming construction as we know it.”

All of this often happens before they have a finished product. Sometimes before they have a working prototype. Occasionally before they’ve spent more than a week inside an actual factory.

And for a while, it works. The buzz builds. The language gets bolder. Words like disruption, scalability, and game-changing get tossed around like confetti.

Then something truly remarkable happens.

They meet the Demons of Construction.

When the Buzz Meets Reality

Construction is polite at first. It lets you talk. It lets you demo. It lets you believe.

Then it asks for results.

Not someday. Not after the next funding round. Not once the market “catches up.” It wants results that are effective, affordable, and scalable—right now. Results that work on real factories, with real people, under real constraints.

This is usually the moment when things start to unravel.

The solution doesn’t integrate as easily as promised.
The learning curve is steeper than expected.
The costs don’t line up with the savings.
The factory managers nod politely and never call back.

And slowly, quietly, the once-promising startup begins to fade. Fewer posts. Fewer appearances. Eventually, silence. Another idea chewed up and digested by an industry that has no patience for theory without proof.

It’s not cruelty. It’s survival.

So Who Are These “Demons of Construction”?

Every time I hear about a new process or a new idea, I ask myself a simple question:
Who is this coming from?

Is it someone inside the industry, whose idea has at least been shaped by experience? Or is it someone looking at construction from the outside, convinced they’ve found the missing piece we’ve all somehow overlooked?

Either way, I smile. Because I know the Demons of Construction are already waiting.

Who are they? I don’t really need to tell you. If you’ve been in this business for any length of time, you already know them.

They show up as budgets that never stretch far enough.
Schedules that laugh at optimism.
Labor shortages that refuse to be solved by software alone.
Codes, inspectors, logistics, weather, transportation, and human nature.

They aren’t villains. They’re realities. And they don’t care how elegant your idea looks on paper.

If you’re new to construction, you’ll meet them soon enough. Usually right after you try to implement your first “simple” improvement.

Why Experience Still Wins

None of this means innovation is pointless. Far from it. Construction needs better tools, smarter systems, and fresh thinking. But the ideas that survive tend to share a few traits.

They respect the complexity of the industry.
They solve one real problem instead of ten imaginary ones.
They prove their value on the floor before shouting about it online.

And most importantly, they understand that construction doesn’t need miracles. It needs improvements that work on a bad day, not just a good one.

So the next time someone tells you about a new idea that’s going to change everything, listen politely. Ask a few practical questions. And watch closely.

If it survives the Demons of Construction, you might just be witnessing real progress. If not, well—there will always be another “new” idea coming along next week.

And I’ll probably smile at that one too.

Written by Gary Fleisher—industry writer, consultant, and longtime voice of offsite and modular construction.

Watching my 14-year-old grandson — a Gen Alpha kid who somehow squeezes four lifetimes into one — has completely changed the way I look at the future of our industry. This is a young man who taught himself to weld in his garage, sketches plans and builds backyard structures for fun, repairs small engines for neighbors, runs a lawn care business he started at age 10, and still pulls off good grades in high school.

Not because someone told him to. Not because there’s a curriculum for it. But because he wants to understand how things work — and how to make them better.

And watching him led me to one question that our entire industry needs to start asking:

How do we bring more young people into construction and offsite manufacturing, not just as skilled workers… but as skilled entrepreneurs?

Because this is a different segment of labor — a desperately needed one. Factories need line workers, yes. But they also need doers who become thinkers, and thinkers who become founders. They need the next generation of subcontractors, installers, innovators, factory owners, and problem-solvers who look at inefficiency and say, “I can fix that.”

If we fail to develop that side of the workforce, we won’t just be short on talent — we’ll be short on leadership.

So let’s talk about how we grow that entrepreneurial spark from the ground up.

Here are my suggested “7 Steps to Entrepreneurship”

Step One: Build Ownership Thinking Early

You can’t learn ownership by watching someone else clock in. Ownership has to be experienced, and it should start long before a young person steps onto a jobsite.

Trade programs still teach people to work for a boss, not be one. Every construction tech program should build in a mini-business pitch, a pricing exercise, or a project that requires estimating, scheduling, and customer communication.

Entrepreneurship doesn’t begin with a loan application — it begins with a mindset. And the earlier we cultivate it, the stronger it grows.

Step Two: Apprentice in Business, Not Just a Trade

Traditional apprenticeships teach skills; entrepreneurial apprenticeships teach systems. Pair every apprentice with an owner, estimator, or operations lead once a month. Let them see the business side — the bids, the budgets, the surprises, the stress, the strategy.

If you want someone to eventually run a company, they need to understand far more than how to build the product. They need to understand how to keep the doors open.

Step Three: Create Micro-Entrepreneurship Opportunities

Gen Z and Gen Alpha don’t want to wait a decade for responsibility — they want it now, and they thrive when they get it.

Factories could create “Own Your Crew” starter programs. Trade schools could host small-business building competitions. Communities could support student-run micro-crews doing repairs, ADU prep work, yard structures, and real paid projects.

Small opportunities build real confidence — and confidence builds founders.

Step Four: Match Them With Mentors Who Have Scars

The best entrepreneurship teachers aren’t professors — they’re people who survived mistakes. Retired builders, former GMs, and veteran factory managers should be the backbone of a new mentorship movement.

If you’ve made payroll in a slow month or rebuilt a business after a bad year, you can teach more than any textbook ever will. And young people want real talk. They want the truth, not the brochure.

Step Five: Redefine Innovation for This Generation

Young people think innovation means robotics, AI, or 3D printing. Sure — those matter. But innovation in our industry also looks like shaving a day off a schedule, redesigning the flow in a factory, improving logistics, or managing installs smarter.

Show them that entrepreneurship in construction is often about improving a process — not inventing a gadget. When they understand that, they start looking for opportunity everywhere.

Step Six: Teach Tech With Purpose

The future entrepreneur in our industry will use AI as casually as a tape measure. BIM won’t be “specialized software.” CRMs won’t be “nice to have.”

If we want tomorrow’s builders to run successful companies, we must train them to think digitally. Not because tech replaces knowledge — but because tech multiplies it.

When a young builder understands both construction and digital tools, they become unstoppable.

Step Seven: Celebrate Young Founders Like Rock Stars

We highlight machines, robots, and giant factories — but not the 19-year-old who launched a small CAD studio or the 22-year-old who started a framing crew with two friends.

If we want more entrepreneurs, we need to show entrepreneurs. Every story of a young builder-founder is a spark. And sparks create momentum.

THE BIG PICTURE

We cannot solve the labor crisis by training workers alone. We also need to train owners, leaders, creators, problem-solvers, and risk-takers.

Factories will always need line workers. But the industry will collapse without the innovators who hire those workers, refine the processes, and build the companies that move offsite construction forward.

The future belongs to the young people who don’t just want jobs — they want ownership. They want autonomy. They want to build something that’s theirs.

Our job is to give them the blueprint — and then get out of their way.

Why climate-smart design is the next big shift for modular and tract builders

For decades, homebuilding has followed a simple pattern: design the house, then make it comfortable by adding heating, cooling, and insulation. But today’s builders — especially in modular and prefabricated housing — are flipping that logic upside down. Instead of forcing comfort onto a design after the fact, they’re starting with the climate itself.

Welcome to the growing world of bioclimatic design — an approach that makes a home work with its environment instead of fighting against it. It’s one of the most promising movements in construction, and it’s finding a natural home in prefabricated housing, where precision and efficiency already lead the way.

What Is Bioclimatic Design?

At its core, bioclimatic design means shaping a home around the conditions of its specific location. It’s not about fancy technology or high-priced materials — it’s about common sense, refined by science.

A bioclimatic house takes into account the sun, wind, temperature, humidity, and even local vegetation. The goal is to reduce the need for artificial heating and cooling by designing a structure that naturally stays comfortable all year long.

Think about it this way: a home in Phoenix shouldn’t be designed the same way as one in Portland. In the desert, you want deep overhangs, light-colored walls, and narrow windows that limit direct sunlight. In a cooler climate, you want the opposite — broad south-facing windows that let the sun pour in during winter, with trees or shading devices to block it during summer.

By understanding these basic principles, a designer can make a home that consumes 30 to 60 percent less energy without relying on expensive mechanical systems. That’s bioclimatic design at work.

Why It Fits Prefabrication So Well

Prefabricated and modular homes are built in controlled environments, where precision is everything. That makes them ideal for bioclimatic strategies.

Factory-built homes can be oriented on the lot exactly as designed — with windows, shading, and insulation tailored for the region before they ever leave the production line. Walls can be built with airtight seams, triple-glazed windows can be fitted perfectly, and roof overhangs can be manufactured to precise angles that optimize solar gain.

Unlike site-built homes that depend on varying craftsmanship, prefabricated homes ensure that each energy-saving detail is executed exactly as planned. The repeatability and quality control of the factory environment give bioclimatic design a powerful advantage.

Even small changes at the design stage — like window placement or the choice of exterior materials — can make a big difference when applied consistently across dozens or hundreds of homes.

A Perfect Match for Tract Builders

Here’s where things get even more interesting. Bioclimatic design isn’t just for custom eco-homes or experimental green projects. It’s starting to show up in mainstream housing developments, where efficiency now meets profitability.

Large tract builders are learning that climate-sensitive designs can lower construction costs and boost buyer appeal at the same time. By aligning floorplans, rooflines, and window placements to suit regional climates, builders can create entire neighborhoods that stay cooler in summer and warmer in winter — using less energy and fewer mechanical systems.

For example, a tract builder in Texas might orient homes to capture prevailing breezes, while one in Colorado might design south-facing windows with longer roof overhangs to provide winter warmth and summer shade. These are small tweaks with big payoffs.

The result? Lower monthly utility bills for homeowners and higher long-term satisfaction — two selling points every builder wants to advertise.

Modular Factories Are Catching On

Many modular home factories are beginning to integrate bioclimatic design into their product lines. Some are hiring sustainability consultants to model how their standard floorplans perform in different regions. Others are offering “climate packages” that adapt wall thickness, insulation type, and glazing for specific climates — the same way car manufacturers offer packages for cold-weather or desert driving.

A factory that understands bioclimatic principles can pre-engineer homes that perform exceptionally well across climate zones, giving them an edge in both residential and commercial projects.

For example, modular factories in the Southeast are using deep eaves, reflective roof coatings, and vented cross-breezes to handle humidity, while factories in the North are focusing on passive solar design and high R-value wall systems. The shift is subtle but significant: modular construction is no longer just about speed and cost — it’s becoming about climate performance.

Smart Design, Not Just Smart Tech

The homebuilding industry has spent the past decade chasing “smart home” technology — thermostats that learn, lights that adjust, and appliances that sync with your phone. But bioclimatic design is smart in a different way.

It doesn’t depend on software updates or electricity. Instead, it uses timeless principles that have worked for centuries: sun paths, wind direction, and thermal mass. Ancient builders understood these things instinctively — from adobe homes in the Southwest to stone cottages in Europe — and we’re finally rediscovering their wisdom.

The modern twist is precision. With today’s digital design tools, offsite builders can simulate how sunlight will strike a wall on any day of the year, or how a breeze will pass through a courtyard. That information turns into measurable savings when the home is built.

The Business Case for Builders

There’s also a clear economic argument. Energy-efficient homes don’t just reduce bills — they sell faster and hold value longer. Buyers today are increasingly aware of energy costs and environmental impact. When builders can show that a home’s comfort and efficiency come from its design, not just its equipment, it builds trust and distinction in a crowded market.

In fact, many major homebuilders are already rebranding their developments around “climate-smart living” or “naturally efficient design.” The message resonates because it’s practical, not political. It’s about comfort, savings, and good design — values that appeal across demographics.

Looking Ahead

As more states update their energy codes and municipalities push for lower-carbon building methods, bioclimatic design will move from an optional feature to an industry standard. For modular factories and tract builders, it’s a rare win-win: a design philosophy that improves both environmental performance and customer satisfaction.

The housing of the future won’t rely solely on bigger HVAC systems or high-tech gadgets. It will rely on smart design that responds to nature — and prefabrication is the perfect vehicle to deliver it.

My Final Thought:

Bioclimatic design isn’t a trend; it’s a return to common sense. It’s about learning from the sun, the wind, and the land beneath our feet. And in a world where every kilowatt and every dollar matters, the smartest homebuilders — whether they’re running massive tract operations or modular factories — are realizing that the best way to fight the climate is to build with it.

What would really happen if you ask your entire team how they’d restart your offsite construction company from scratch — and then tell them you’re ready to do it.

Picture this.
You gather everyone in your offsite construction company—managers, drafters, production crews, even the guy who somehow always fixes the nail gun with chewing gum and a smile. The room is buzzing with quiet curiosity, waiting for the usual safety talk or production update.

Instead, you drop this bomb:

“If I were to start this business over again from scratch, what changes would you make?”

At first, they blink. Then it happens.

The Room Comes Alive

It starts with a few brave souls. Someone points out that the scheduling software causes more chaos than clarity. Another says the wall panel line was never set up for efficiency, just jammed into whatever space was left. A crew lead admits that training new hires is like tossing them in the deep end and hoping they float.

Suddenly, everyone’s talking. Not complaining—building.

Ideas fly. Frustrations finally see daylight. People who’ve quietly tolerated the daily grind are sketching out better ways to do it. You can almost feel the oxygen come back into the room.

For a moment, it’s electric.
And then… you say it.

“Those Suggestions Sound Great. Now, Let’s Start Rebuilding.”

Silence.
The air shifts from excited to nervous in a heartbeat.

Because now it’s real.

They picture their jobs changing—or disappearing. They picture production slowing down. They wonder who’s going to be blamed for the old way and who will be left standing when the dust clears.

And just like that, the enthusiasm that lit the room like a sparkler suddenly feels like a wildfire creeping toward their desks.

Change sounds exciting… until it sounds like risk.

The Culture Line Appears

Here’s where you find out what your company is really made of.

In a high-trust shop, your crew will lean in. They’ll want to help shape the future. They’ll volunteer to pilot new processes, rethink old habits, and prove that they’re part of the solution.

But in a low-trust shop, fear takes over. People retreat. They start quietly thinking about their résumés. Innovation dies in the same meeting where it was born.

You can’t bulldoze fear with enthusiasm. You have to build trust first, brick by brick.

Leadership and the Fork in the Road

Handled well, this moment can be a turning point. A company reborn from the inside out.

Handled poorly, it’s just another big speech no one believes, followed by a slow fade back to “the way we’ve always done it.”

The difference comes down to leadership.
Not the chest-thumping kind—the listening kind.
The kind that turns those raw, honest answers into an actual plan. A plan where employees lead the charge, not just watch from the sidelines waiting for the next round of chaos.

What Would You Do?

Asking “What would you change if we could start over?” can be the boldest, bravest question a factory owner ever asks.

But if you’re going to light that fuse, you’d better be ready to guide everyone through the explosion—and into something better on the other side.

Because this isn’t about tearing down a company.
It’s about finally giving everyone the chance to build it right.

If you believe it’s time for your factory to make some changes, Bill and I are here to help.

Bill Murray, experienced Advisor to the Offsite Construction Industry

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