When the Orders Stop, So Does the Factory

 

Modern Homes Ireland’s Cavan plant closure reveals how fragile modular housing production becomes when government work dries up.

Modern Homes Ireland (MHI), one of Ireland’s best-known modular construction firms, has shuttered its Ballyjamesduff, Co Cavan factory after citing a lack of forward orders and continued weakness in the housing market.

At its peak, the factory employed about 120 people. The immediate closure affects roughly 20 full-time staff and 50 part-time contractors. MHI said it will continue limited operations to fulfill current projects, but no new contracts are in the pipeline. Employees are now in consultation and remain on paid leave.

The company, acquired by BAM Construct several years ago, played a key role in the government’s modular housing initiative, delivering units for rapid-build projects — including accommodation for Ukrainian arrivals. That program drew scrutiny when reports surfaced of modular homes costing as much as €440,000 each, fueling debate about costs and procurement oversight.

In a statement, MHI attributed the decision to “sustained low levels of activity in the Irish residential property market and the resulting lack of forward order book.” Without consistent demand, keeping a large-scale modular plant operating was no longer financially viable.

Social Democrats housing spokesperson Rory Hearne called the closure “shocking,” noting that Ireland needs every available resource to meet its housing shortage. He urged the government and the Land Development Agency to intervene to preserve modular production capacity and protect skilled jobs.

For the broader offsite sector, the MHI closure is another reminder that modular success depends on a predictable flow of projects — not one-time emergency contracts. When the government stops ordering, even the best factories can go dark, and rebuilding that capacity later is far more difficult and expensive.