Manufactured homes always seem to be on the cusp of something big: solve the housing shortage or address systemic waste. But in the US, new manufactured homes still represent a small fraction of the market (about 2% of single-family homes built in 2021, for example).
It is now clear that prefab was not a panacea for America's housing crisis, but Plant Prefab says his version, along with $42 million in additional funding and a new factory, will still make an impact, eventually delivering up to 900,000 square feet of "extremely sustainable" and "extremely healthy" housing per year. The startup estimates that it will represent around 800 units per year in a mix of houses, apartments and condominiums.
Many startups make manufactured homes, including Veev, Mighty Buildings, Cover, Modulous, and Factoryos. Plant Prefab says its approach to developing custom homes for urban areas is unique.
"The vast majority of companies focus on standard homes," offering a selection of models with customizable finishes and accessories, CEO Steve Glenn said. On the contrary, he said that Plant Prefab he works with architects to precast his designs, because "they understand the local vernacular, the local permitting process, the local materials, and the local needs." He added, "we want to give them a more efficient way."
The executive director described the construction system of Plant Prefab as, "in a sense, our own Legos." The company produces panels with built-in infrastructure. “We combine it into specialized modules for kitchens, bathrooms, utility courts, in other words, the expensive parts of the house,” he said. And on the software side, Glenn said the company offers a 3D configurator and works with third-party CAD software to build a "structural, mechanical, electrical and plumbing model of every home we build, so we can create absolutely accurate takeoffs." and limit construction waste.
The new automated facility will be a "big game changer for us," Glenn said. LThe company currently produces around 40 houses a year through two other facilities. “Our average project is three months, so we're pretty fast, but significantly faster on new installations and at a much lower price,” he added. As things were, Glenn said the company made $16 million in revenue last year.
Glenn believes the company's focus on faster landfill will ultimately help the planet. The company's environmental claims also include designing to save energy and water, using recycled drywall and insulation, as well as more environmentally friendly paints, and purchasing carbon offsets to cover "the first two years of operation of our homes." Glenn said.
Not counting electricity the construction sector makes up 14% of US greenhouse gas emissions in 2019. What's worse is that it's headed in the wrong direction: The business is "not on track to reach net zero emissions by 2050," warned a 2022 report from the Information Technology and Innovation Foundation.
The new round of Plant Prefab consists about $30 million in capital led by Brazilian steelmaker Gerdau, and $12 million in debt from Silicon Valley-based Western Technology Investments and ATEL Capital. That's in addition to early top-ups from firms like Amazon y Obvious Ventures.
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