News that Harbinger Production—formerly known as Factory_OS—may close its Vallejo, California factory and lay off 280 employees should send a chill through anyone involved in offsite construction.
The company recently filed a legally required notice warning of possible layoffs later this year.
The reason? A familiar one in our industry: a lack of new contracts and the loss of capital funding. Still, company leadership says the shutdown isn’t a done deal. They are working hard to land new projects within the next 60 days in hopes of keeping the factory alive.
Harbinger has been a major player in modular housing, especially in affordable housing across the Bay Area. Since 2017, the company has produced roughly 4,000 units, with about 90 percent going toward affordable housing developments. That’s not just impressive—it’s meaningful. Their projects have helped communities, provided housing for those in need, and shown what factory-built housing can accomplish when everything aligns. But even the strongest offsite factories are vulnerable when the production pipeline runs dry. A modular factory without steady work is like a cruise ship without passengers. It doesn’t matter how beautiful or efficient the ship is—it still can’t move forward.
The company says it still has a strong pipeline of potential deals, but today’s gap in production has forced this warning. The carpenters union is actively working with Harbinger to prevent layoffs, and that collaboration is encouraging. In this business, survival often depends on partnerships—between factories, labor, developers, and government agencies. When one part of the ecosystem weakens, the entire system feels it.
Harbinger’s challenges also highlight a growing reality many in the offsite world are beginning to confront. Competition is no longer just local or regional. It’s national and global. Projects in California are now being built with modules manufactured in other states or even overseas, in China, for example. Lower labor costs, different regulations, and supply chain advantages are shifting the playing field. At the same time, lawsuits related to labor practices and unpaid suppliers add pressure and uncertainty, making it harder to attract investors and developers.
Workers at the Vallejo plant say uncertainty is high. Some management layoffs have already occurred, and employees worry that if the facility closes, they may struggle to find comparable union jobs nearby. For many, this is more than just a paycheck. Several workers spoke about the pride they feel in building housing for families and the homeless. That sense of purpose is something our industry often forgets to talk about—but it matters.
What’s happening at Harbinger is not an isolated story. It’s a snapshot of where offsite construction stands today. The promise remains strong. Building in factories can reduce costs, improve quality, and speed up timelines. But the business model is still fragile. Factories require steady work, strong capital, and long-term partnerships. Without those, even the most innovative operations can struggle.
The company points to upcoming state legislation and innovation initiatives that could support affordable housing production and modular construction. That may help. But legislation alone won’t save factories. What will make the difference is consistent demand, realistic project planning, and developers who commit to factory-built solutions over the long term—not just when it’s convenient.
If Harbinger secures new contracts, this story may turn into one of resilience and comeback. If not, it will become another cautionary tale. Either way, the lesson is clear. Offsite construction doesn’t fail because the idea is wrong. It struggles because the ecosystem around it is still learning how to support it.
And until that ecosystem matures, stories like this will continue to surface—reminding us that innovation in construction is as much about business discipline and partnerships as it is about technology and vision.
CLICK HERE to read the entire VallejoSun article
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.
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