Ballard lists why factory-built modular housing has struggled: no distinct look, shipping costs that eat the automation savings, and designs constrained by what fits on a road. His company's answer is to bring the robot to the building site instead.
Well, so that was first. Reason number one is they didn't have a differentiated approach to aesthetics.
Okay.
…ship a refrigerator. It's very expensive to ship a house. And so often all the savings you got from the automation, you surrendered back in shipping cost, or you needed to build a factory every 500 miles. And so there was like an economic problem with shipping versus the expense of building new factories closer to market, things like that. And then the third problem is a product problem is like, because you have to ship these houses, you end up at some level having to optimize the house for a truck. And houses aren't for trucks, they're for people. The product should be optimized for people, not a road. And so those three things put together, I think, are the three things you would have to solve if you really wanted a modular construction company to work. But 3D printing, in a sense, we just kind of inverted the problem. We said, hey, instead of shipping the house, ship the factory. Like a 3D printer, another funny way to think about a 3D…
So you're at this moment when it seems like you've proven that the thing you're building works and that people want to buy it, importantly, and that banks will lend against it. What do you worry about? Like, if something's going to go wrong for you in the next few years, what do you think it'll be?
So far, we've been so close to everything we've done, right? Like, we were there— Uh, we were just like close to our problems, both literally in terms of our business model, and then literally in terms of geographically, the market we were working in.
Like you could just drive out there every day. Yeah.