Why Retrofitting with Automation Is the Future for Modular Housing Factories

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There’s no shortage of buzz about automation in offsite construction—robotics, CNC routers, AI-based quality control, you name it. But while brand-new modular factories are being built with all the latest bells and whistles, what about the hundreds of factories that already exist? Do they get left behind, or can they catch up?

all photos – Assembly Mag

Good news: they can catch up—and it might not be as complicated (or expensive) as it sounds.

Let’s talk about why retrofitting existing modular housing factories with smart automation is not just a smart move—it’s quickly becoming essential. And while we’re at it, let’s talk about the often-overlooked key to making it all work: people.

A lot of older modular factories are still using systems that worked well 10 or even 20 years ago. But today’s market is faster, tighter, and way less forgiving of delays and errors. That’s where automation comes in.

We’re not talking about building an entirely new $40 million robotic facility. Retrofitting means taking what you’ve already got and upgrading strategically—automating the bottlenecks without disrupting everything else.

Think:
✅ Material handling systems that reduce waste and labor fatigue
✅ Robotic arms for repetitive tasks like fastening and sheathing
✅ Real-time quality assurance tools that catch problems early
✅ Conveyor systems to reduce time and increase safety

You don’t have to automate everything. Just start with what slows you down the most.

Many older factories weren’t designed to handle the size, weight, or power needs of modern automation equipment. That means before you can bring in the robots, you’ll likely need to address things like floor reinforcement, ceiling height, power upgrades, and layout redesign.

These aren’t small changes—but they’re doable. And compared to building a whole new facility? Much more manageable.

Now here’s where it gets interesting—and where a lot of factories go wrong. You can buy the best machines on the market, but if your team isn’t on board, it won’t work. Automation done to your team breeds resentment. Automation done with your team builds buy-in, trust, and long-term success.

This is where soft skills come in. Factory managers and leaders need to:

  • Communicate clearly and often about what’s changing and why
  • Involve employees in the process from the beginning
  • Offer training and opportunities to upskill
  • Listen to concerns and adjust plans when necessary

At the end of the day, modular housing is still a people-first business—even with all the tech.

Retrofitting is not a one-and-done operation. It’s a process. Start small. Automate one station or process. Track the results. Make adjustments. Then move to the next area.

This phased approach gives your team time to adapt and gives leadership room to make smart, data-driven decisions—not guesses.

The most efficient modular housing factories in the next five years won’t necessarily be the newest—they’ll be the smartest. They’ll combine decades of hands-on production knowledge with just the right amount of automation. And they’ll be led by people who know how to manage both machines and morale.

So if you’re running an older factory and wondering how you can stay competitive—don’t think demolition. Think retrofit. Think smart. And most of all, think people first.

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Gary Fleisher, The Modcoach, writes about the modular and offsite construction industry at Modular Home Source.

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