Builder Magazine: Why Disruptive Innovation, And Why Now?

"George Casey, principal at Stockbridge Associates, Gerard McCaughey, founder and CEO of fully-integrated offsite solution platform Entekra, and capital advisor Margaret Whelan, founder and principal of Whelan Advisory LLC, joined me for an hour to focus on this topic...

Some guess that 2018 and 2019 are going to be pivotal years for the emergence of integrated factory fabrication of major portions of houses prior to assembly on home sites. Many counter that it's still too soon, and that all the focus on Katerra, Clayton, Entekra, Blueprint Robotics, Unity Homes, Buddy Raney Construction, Blokable, Kasita, Blu Homes, and other players in the modular, compontent, panelization, offsite construction models is mostly hype that gets amped up because of current labor capacity anxieties.

At the same time, so many of us can feel almost viscerally that--despite the numbing overuse of those words--it has to happen. And the first, most likely opportunity area for disruptive innovation to happen would involve taking what does not produce value out of the architecture, capital, construction, engineering, and real estate chain of processes that generate new or improved housing.

Simply, too much time, and too much money, and too much effort get lost, spent, wasted in the way people match up to their homes. The net effect of this is that this inefficiency shrinks the universe of people who either choose to or are able to participate as customers."

Margaret Whelan