Before you lock the doors for good, here are five things every factory owner should do to survive—or shut down smartly.
Every offsite construction factory hits bumps in the road. But when the bumps feel more like sinkholes—when the orders stop coming, the bills stack up, and every meeting feels like a funeral—owners are forced to ask the hardest question of all: Can we survive this?
Sometimes, the answer is yes—but only if you act fast. Other times, closing the doors is the smartest thing you can do. Either way, here are five actions you must take when your modular or offsite factory finds itself in deep water.
Face the Financial Facts
Start with the cold truth. Sit down and look at your numbers: not just your P&L, but your actual cash in the bank, what you owe, what customers still owe you, and what it costs just to keep the lights on. If you don’t know how many weeks (or days) of runway you have left, you’re flying blind.
Survival Tip:
Bring in an outside financial advisor who understands construction. You need real answers, not wishful thinking. Your factory’s burn rate—the money you’re losing every week—will tell you how urgent the next steps are.
Talk to the People Who Matter
Hiding won’t help. Whether it’s employees, lenders, suppliers, or investors, people need to know what’s going on—especially if you want their help.
Survival Tip:
Be honest, but strategic. Employees deserve to know if they should be looking for work. Vendors need to hear if you’re struggling to pay bills. Customers would rather hear bad news now than be ghosted later. You don’t have to share every detail, but a lack of communication breeds panic—and lawsuits.
Exhaust Every Option Before You Quit
Just because you’re in a nosedive doesn’t mean the plane can’t pull up. Maybe the business needs to shrink, pivot, or find a new partner. Maybe it’s time to shift from full modules to wall panels. Maybe there’s a buyer waiting in the wings.
Survival Tip:
Hire someone who’s closed deals before—someone who’s helped sell factories, bring in investors, or merge operations. It’s amazing what can happen when you’re willing to ask for help instead of just folding.
Protect Your Reputation at All Costs
How you act during the worst of times will define how you’re remembered in the best of times. You’ve spent years building relationships, trust, and a good name. Don’t torch it out of frustration.
Survival Tip:
If you’re going out, go out clean. Finish what you can. Negotiate what you can’t. Communicate clearly. The offsite world is small, and word travels fast. What you do today will either follow you like a shadow—or open new doors tomorrow.
If Closing is the Only Way, Close the Right Way
Sometimes there’s no rescue boat coming. If you’ve reached the end of the line, don’t slam on the brakes. Plan a professional exit that protects you legally, financially, and emotionally.
Survival Tip:
- Talk to an attorney about shutting down properly.
- Sell your equipment while it still has value.
- Help your team land on their feet.
- Secure all files, IP, and customer data.
- Walk away with your head held high.
You’re not the first modular factory to struggle, and you won’t be the last. The difference between a chapter you can recover from and a full-blown disaster often comes down to action. Fast, smart, and thoughtful action.
Survival doesn’t always mean staying open. Sometimes, it means knowing when to walk away before there’s nothing left to save.
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Gary Fleisher, The Modcoach, writes about the modular and offsite construction industry at Modular Home Source.
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