Modular ‘Megafactory’ Texas Site Remains Empty After Two Years

Many people have invested in this California modular manufacturer since the company started round after round of funding webinars more than 5 years ago and so far only one of the factories it has promised to build across the US is actually open and apparently turning out modules.

California-based S2A Investments two years ago said it would build a “megafactory” in Waco to build energy-efficient modular homes in assembly-line style. It would employ about 250 people at 1619 Exchange Parkway, just down the road from Waco’s new Amazon fulfillment center.

But the site has become an eyesore, producing nothing but weeds, and local economic development officials wonder if Waco will ever see the 10 manufacturing structures arising in a campus setting that S2A Modular pledged in a news release in September 2021. S2A was to serve as its own general contractor, while subcontracting other tasks.

Complicating the matter is S2A’s mounting tax delinquencies. It owes $76,000 in 2022 taxes, plus interest and penalties of about $110,000, according to the McLennan County Tax Office. It has been targeted in a lawsuit seeking to recover back taxes and attorneys’ fees.

Production Line of S2A’s California factory

The company reportedly planned to develop on about 30 acres. Local economic development officials encouraged the company to build its megafactory in Waco, but local governments did not offer tax deals or other incentives.

In an email response to questions, S2A Modular president John Rowland said he had “no exciting news” to report about the company’s plans for Waco. He blamed delays on the COVID-19 pandemic and related supply chain issues, adding in an email response, “We expect to continue with the new factories in 2024.”

CLICK HERE to read the entire Waco Tribune-Herald

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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