Another Mega Offsite Factory Closes Its Doors – Correction

Entekra has now entered the history books as another failed offsite construction company that has turned out to be more flash than profitable for its investors. This is the second blow our industry has seen in recent years when Katerra ended up on the chopping block after a lot of investment money was wasted on trying to dominate the offsite market.

Entekra, a leading off-site construction technology company, has announced that it will be ceasing its operations within the next 60 days. This comes as a shock to many in the industry, as Entekra had been seen as a major player in the growing trend of using off-site construction methods to improve efficiency and reduce costs in the building process.

According to a statement released by the company, the decision to shut down was made after a careful review of the company’s financial performance over the past year. The company had struggled to maintain profitability, despite having secured several large contracts and partnerships with major players in the construction industry.

Correction: In and earlier edition, I identified Gerry McCaughey as the CEO of Entekra but he has not been since Sept 2021. Neil Sherman from LP is the President/CEO and has been since that time.

The news of Entekra’s closure has been met with mixed reactions from industry experts. Some have expressed sadness at the loss of a company that had been seen as a key innovator in the construction technology space, while others have noted that the company’s struggles may be indicative of broader challenges facing the off-site construction industry as a whole.

One of the key factors that may have contributed to Entekra’s difficulties is the relatively slow adoption of off-site construction methods in the United States, where the company was based. While off-site construction has gained popularity in other parts of the world, including Europe and Asia, it has been slower to catch on in the US, where traditional on-site construction methods still dominate.

Another challenge facing the off-site construction industry is the need for significant upfront investment in infrastructure and technology. In order to produce high-quality modular components off-site, companies like Entekra need to have specialized facilities, equipment, and skilled workers. This can be expensive to set up, and may require significant capital investments before the company can start generating revenue.

Despite these challenges, many in the industry remain optimistic about the potential of off-site construction methods to transform the building industry. By prefabricating components off-site and assembling them on-site, companies like Entekrahave been able to reduce construction time and costs, while also improving quality and safety.

As the industry continues to evolve, it is likely that we will see more companies like Entekra emerge, offering innovative solutions to the challenges facing the building industry. While the closure of Entekra is undoubtedly a setback for the industry, it is important to remember that innovation often comes with its own set of challenges and failures, and that these setbacks are a necessary part of the process of progress and growth.

In the short term, the closure of Entekra is likely to have a significant impact on the company’s employees, as well as its partners and customers. The company has not yet announced what will happen to its existing contracts and partnerships, or what will become of its intellectual property and technology.

However, as the industry continues to evolve, it is likely that the lessons learned from Entekra’s experience will help to inform the development of new companies and technologies that will help to push the industry forward. Despite the challenges facing the off-site construction industry, there is no doubt that it will continue to be an important area of innovation and growth in the years to come.

Gary Fleisher

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Gary Fleisher

Gary Fleisher, “The Mod Coach”, has been entrenched in the offsite construction industry for most of his life. Having started his career in the lumber industry, Gary spent decades working with manufactured and modular home producers and homebuilders. For the past 15 years his blog and LinkedIn postings have introduced thousands to the benefits of factory-built construction and have served as a forum for industry professionals to share insights and perspectives. Gary lives in Hagerstown, MD with his wife, Peg.

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