Four decades of market swings haven’t slowed this Utah modular manufacturer, thanks to product diversity, loyal crews and disciplined adaptability.
• Irontown Modular has thrived by balancing optimism and caution across changing housing markets.
• Diversified product lines and full design-through-delivery control reduce risk and keep production steady.
• A loyal, cross-trained workforce and measured use of AI ensure quality and long-term resilience.
Founded in 1984 in Spanish Fork, Utah, Irontown Modular (Irontown) has weathered housing cycles, shifting markets and changing technologies — and it’s still thriving. Irontown President Kam Valgardson says that his company’s longevity in modular construction comes from flexibility, diversification and a focus on people.
The company started out as a small operation in just 5000 sq. ft. of rented space. Today, it has a 66,000 sq. ft. facility and produces 200 to 250 modules per year, generating roughly $20 million in annual revenue.
That growth has included plenty of ups and downs. “It hasn’t been a nice, linear path,” Valgardson says. “We’ve weathered recessions, bad projects, ownership changes and housing market shifts. But that’s the nature of this industry.” Throughout those fluctuations, Irontown’s leadership adapted to maintain an efficient factory operation and a stable workforce.
One thing that has stayed consistent, however, is their price focus on the mid-market. “We can’t compete at the low end, and we don’t try to. We also don’t do super high-end because that’s a slow market and almost impossible to manufacture en masse. That’s how we stay competitive.”
Diversifying to Remain Resilient
Valgardson says that product diversification within that midmarket focus is a key reason that Irontown has survived for four decades. The company deliberately works across several sales channels — custom homes, catalog models, hospitality and glamping, and commercial or multifamily projects.
“Every factory is a beast that you have to keep feeding,” he says. “If you only have one type of product, you need a massive, steady pipeline of work to survive. But that’s risky because markets change.”
He says that some manufacturers have struggled because they focused too narrowly. “The only company I’ve seen that succeeded long-term in one channel is Autovol [based in Nampa, Idaho], which focuses on affordable housing apartment complexes. But it has developer partnerships that keep its pipeline full, and they work all over the western United States.”
From Design to Delivery
A commitment to full service has also contributed to Irontown’s success. For instance, being involved in design helps the company maintain an efficient production line. It has in-house design capabilities and also collaborates with outside architects. “If an architect just designs a building and sends it to the factory, it’s probably going to have manufacturing problems,” Valgardson says. “Modular construction is manufacturer centric. We always suggest joining the design team early, and providing design-assist services so the project runs smoothly.”
At the other end of the process, Irontown maintains a small transport division. “Modular projects can be intimidating because many developers have never done one before,” he says. “Our being involved from preconstruction to delivery reduces their fear. It adds a lot of value for customers.”
In fact, Valgardson believes that fear of the unknown is the number one thing holding the modular industry back. “When we’re engaged all the way through, we can eliminate much of that fear.”
Culture Matters
While diversification and process control are important, Valgardson says Irontown’s longevity also comes from having a stable workforce. “Labor is the backbone of our company,” he says. “It’s our arms and legs. Really, it is the company.”
Irontown offers its workers paid vacations, paid holidays, full health benefits, and regular teambuilding and cultural events. That last one is rare in the construction industry, according to Valgardson. “We have people from nine different countries in our factory, and we want everyone to feel like they’re part of the Irontown family.” He credits HR Manager Gillian Jenkins for much of that success. “She’s the heart of our company.”
The company once experimented with subcontracted labor, but quickly returned to a fully employed team. “We couldn’t maintain production flow or quality with subcontractors,” Valgardson says. “Now we crosstrain our employees so they can move between tasks. If there’s a gap in framing work, they can help with siding or flooring or painting. That keeps everyone working steadily and helps us avoid layoffs.”
The payoff is an unusually high retention rate. “Labor moves constantly in this industry,” says Valgardson. “We’re proud that people stay here. It’s largely because of our culture. When management shows it cares about employees, products and customers, employees care too.”
Responding to Market Shifts
Adaptability has also been central to Irontown’s survival. “Sometimes you think you have the right answer because you’ve been doing this a long time,” he says. “Then the world changes. You may have a million-dollar idea, but if the market disagrees, you have to adjust.”
A clear example came with California’s ADU legislation in 2019. After the state opened up backyard construction, Irontown built hundreds of ADUs. That is, until interest rates jumped in 2023. That market collapsed, and the company pivoted to other sectors — glamping, cabins, employee housing and single-family homes. “As one channel dried up, others opened,” Valgardson says. “Our ability to be flexible kept us going.”
Valgardson credits Irontown’s ability to successfully pivot to a balance of perspectives within the management team. “I’m an optimist,” he says. “My counterpart is our Finance VP, Shane Stone, and he’s the opposite, more pessimistic. If you’re the accelerator, you’d better have a brake around, and if you’re the brake, you need an accelerator beside you. That balance helps us make sound decisions. Without optimism, you don’t get ingenuity, but unbridled optimism will crash and burn.”
Intelligent Innovation
That balance of perspectives is also important when evaluating tech innovations. Valgardson believes that technology is important, but that it’s in the company’s best interest to approach it with care.
He’s optimistic about digital tools but cautious about over investing in automation. “AI can’t swing a hammer or cut a board, but it’s great for marketing, estimating and generating renderings,” he says. “We’re using it to improve our sales and design processes. And calculations that we used to do with spreadsheets we can now do with AI. We’re using it for images and videos, too. That’s all going to improve, over time.”
Robotics are a different story. Automation works best when used to manufacture highly standardized products, like cell phones. “Homes are too large and complex for that level of automation,” he says. “Most robotic systems cost millions, but replace only a couple of people. The math doesn’t make sense yet.” Still, Valgardson sees potential in humanoid robots for finish work, such as flooring, taping, or painting, as technology matures. “We’re eager to adopt new tools,” he says, “but we do so in a measured way.”
More Collaboration Needed
Looking ahead, Valgardson says the modular sector needs more factories and more cooperation between them. “We’re not going to raise our percentage of construction in the US until more factories are built and operating,” he says. “The industry needs growth, but it also needs collaboration. Most modular companies are open and willing to share practices. It’s not a cutthroat environment. We all want the industry to grow.”
He encourages new entrants to get expert help. Valgardson mentions that the trade association MBI [Modular Building Institute] and Offsite Builder’s Editor-in- Chief Gary Fleisher are good at connecting people. “Find a good consultant who knows how to set up a factory, hire them and learn,” he says. “The more modular projects that are being built, the stronger we’ll all be.”
Zena Ryder writes about construction and robotics for businesses, magazines, and websites. Find her at zenafreelancewriter.com.
