The Wake-Up Calls Keep Ringing — But is Modular and Offsite Construction Answering?

 

Every industry gets its wake-up calls. Retail had to face e-commerce. Auto manufacturers had to reinvent themselves with electric vehicles and automation. Even publishing had to learn how to survive in a digital world.

Now it’s construction’s turn. And make no mistake — the alarm is ringing loud and clear.

Artificial intelligence, robotics, automation, and software integration are rewriting how projects are designed, built, and managed. Onsite construction companies are adapting, experimenting, and integrating new tools faster than ever. Drone-based inspections, AI-driven scheduling, digital jobsite twins — they’re all becoming part of everyday work.

But walk into many offsite and modular factories today, and you’d think the clock stopped somewhere around 2005.

Despite being built on the promise of modernization and efficiency, the offsite world seems oddly resistant to the very tools that could make it thrive.

Déjà Vu on the Factory Floor

I’ve toured dozens of factories over the past few years, from new startups trying to disrupt the market to 40-year-old stalwarts with reputations built on consistency. The contrast is striking.

The newer operations — like BotBuilt in Durham, NC, hum with experimentation. Their teams are small, hungry, and eager to push boundaries. Robots build wall panels. AI models analyze production data. Software links design directly to fabrication with minimal human input.

Then there are the established factories — the ones that have been around for decades. They’re busy. Profitable. But they look and feel eerily similar to what I saw 20 years ago. Workstations haven’t moved. Processes haven’t evolved. And in many cases, neither have the people in charge.

It’s not that these factories don’t care. It’s that they don’t have to care — at least not yet.

The Profit Paradox

Here’s the real reason behind the stagnation: profit.

If you’re an older, established modular or panelized factory making steady margins, why risk rocking the boat? The prevailing logic goes something like this: “We’re making money now, so why gamble on something untested?”

It’s a short-term mindset dressed in long-term denial.

The truth is, factories aren’t avoiding innovation because they’re afraid of failure — they’re avoiding it because they’re afraid of spending. They’ve found a way to stay comfortable in an industry that was supposed to be all about discomfort, disruption, and doing things differently.

But comfort kills innovation. Every year an offsite factory delays adopting automation, robotics, or even modest AI-based workflow software, it widens the gap between what’s possible and what’s sustainable.

Companies like 4Ward Solutions and Moducore have built affordable, scalable management and production systems that can track materials, time, efficiency, and labor across every line in a factory. Yet many factory owners I talk to still manage with Excel sheets, whiteboards, and gut instinct.

That might work today. But tomorrow’s projects — especially large commercial, multifamily, or government-funded modular builds — will demand precision, documentation, and digital accountability that manual systems can’t provide.

Startups: The Other Side of the Coin

Ironically, startups face the exact opposite problem.

Visit a brand-new factory and you’ll see gleaming equipment, custom software dashboards, and digital displays showing production metrics in real time. Investors love the look of innovation — but not the cost of it.

Too often, new factories burn through millions trying to build a futuristic production line before they’ve even produced enough modules to prove their concept. I’ve seen more than one founder run out of money, patience, or both, long before the first unit was delivered to a jobsite.

Being innovative isn’t the same as being profitable.

The smartest startups find balance. They adopt technology in layers, aligning each phase of growth with measurable ROI. They focus on solving one real-world problem at a time: material waste, bottlenecks, rework, or communication breakdowns between sales, design, and production.

That’s where digital tools, automation, and AI prove their worth — not as shiny toys, but as quiet problem-solvers.

Lessons from the Onsite Side

Here’s the irony: the “onsite construction boys and girls,” as I like to call them, are often adopting and adapting to technology faster than their offsite counterparts.

Concrete crews use robotic layout systems. Roofers use AI to map out cuts and slopes. Home builders use 3D scanning for as-builts. The field, traditionally seen as slow to change, is moving faster than the factories that were supposed to lead the revolution.

How did that happen?

Simple — they didn’t wait for perfection. They tried, failed, adjusted, and tried again.

That’s the difference between a company that views technology as a lifeline and one that views it as a luxury.

The Path Forward

The offsite industry doesn’t need an innovation miracle. It needs a mindset shift.

Factories must move from “Why change?” to “Why not change?” The cost of staying the same is rising — labor shortages, material volatility, and increasing regulatory complexity are already squeezing margins. The only way to stay ahead is to build smarter, not just bigger.

And that doesn’t always mean a seven-figure robotics system. It can start small:

• Software integration: Connect estimating, scheduling, and production systems.
• Digital training: Use AI-based tutorials to onboard workers faster and cut errors.
• Automation in stages: Start with cutting, fastening, or labeling systems before moving to full robotics.
• Predictive maintenance: Use sensors to prevent machine downtime instead of reacting to it.

Small steps create big results when done consistently.

Wake-Up Call: Round Two

The next few years will define which offsite companies survive the next cycle of disruption. When interest rates fall and affordable housing initiatives ramp up again, demand will surge — but so will expectations.

Developers, cities, and government agencies will want proof that factories can deliver faster, cheaper, and smarter. They’ll want traceability, digital documentation, and performance data. The factories that ignored technology will be scrambling to catch up, while the ones that listened — even a little — will be ready.

I’ve written for years about the potential of AI, automation, and robotics in this industry. Not as gimmicks, but as tools that make every part of the process — from design to delivery — better. What’s missing isn’t opportunity; it’s action.

My Warning to the Offsite Industry

The offsite construction industry was founded on innovation. It was supposed to be the wake-up call for traditional construction. But now, the tables have turned — and it’s offsite’s turn to wake up.

Technology isn’t waiting. Investors aren’t waiting. The market certainly isn’t waiting.

So the question isn’t if this industry will finally hear the alarm — it’s who will still be around to answer it.