The Rise of Shippable Microfactories

Summary

A shippable microfactory from AUARNick Durham is a General Partner at Shadow Ventures, a venture capital firm focused on investing in frontier technologies for the built world.Traditionally, prefabricated construction has meant large fixed factories churning out modules or panels that get shipped to building sites. The siren song is industrial-esque economies of scale in an industry that’s long evaded affordability and efficiency. But those centralized models, made infamous by companies like Katerra, General Modular Homes, and Skender, have faced challenges due to large up-front capex requirements and the hefty cost of shipping fabricated products to construction sites.The emerging microfactory model flips that script. Instead of shipping bulky housing components from a distant plant, why not ship the factory itself to the project? In other words, take a compact, automated production unit (often the size of a shipping container) and set it up right next to the jobsite. The factory becomes a portable product, and the building components are made where they’ll be used—a true inversion of the old “fixed factory, shipped goods” paradigm.By making factories shippable and goods more locally produced, microfactories aim to capture the benefits of off-site fabrication (automation, efficiency, indoor conditions) without the drawbacks of centralized production.Today’s letter will explore the microfactory phenomenon, including:What a shippable microfactory isFrameworks for deciding when microfactories add value to construction projects;Examples of shippable micro-factories in action;Future directions and how shippable micro-factories could transform construction as we know it.A shippable microfactory is a compact, self-contained production unit designed for deployment on or near the site of building construction. It combines automation, modular equipment, and digital coordination to enable localized, on-demand manufacturing. It can perform tasks like cutting, framing, and asse...