While it looms large, there’s a pressing concern for the offsite construction industry that rarely captures the attention it deserves. I’m talking about a management crisis.
Beyond the widely recognized scarcity of skilled labor that hampers manufacturers’ production capabilities, there exists a more discreet, equally critical shortfall: the lack of experienced middle and upper-management talent. While this issue tends to be overshadowed by the immediate needs of the production floor, it poses a major threat to the industry’s health and future growth.
The common prescription for the skilled labor gap has centered around recruiting, training and nurturing the production workforce. A large number of industry consultants, academic experts and labor market analysts are working to solve this problem. However, these experts seldom turn their attention to the realm of managerial expertise, particularly the scarcity of seasoned leaders capable of steering these offsite construction enterprises toward sustained success. But this issue is in desperate need of attention. A growing number of companies are operating with a skeletal crew of skilled managers.
This lack of leadership has a lot to do with why some companies stagnate or fall behind. My observations, drawn from decades of watching the industry evolve, have shown me that the most successful offsite factories are those that invest time and resources into the cultivation of robust management teams.
The pitfalls of inadequate management preparation continue to be all too real. I have witnessed firsthand the repercussions of top management’s failure to grasp the essentials of launching a new factory. This lack of foresight often leads to a cascading effect, where inexperienced individuals are placed in critical management roles, further exacerbating the challenge of building a competent leadership team. Unfortunately, this scenario has doomed more startups than the industry cares to admit.
The narrative is not entirely grim, though. A few companies in the offsite construction sector have demonstrated remarkable prowess by enlisting experienced consultants (for instance Erik Schaefer at Fading West, Andy Miller at Arris and Tommy Rakes at Guerdon). This strategic move not only bridges the knowledge gap, but also sets a solid foundation for attracting and retaining talented individuals who can propel the organization forward.
In confronting this silent crisis, it’s imperative for the offsite construction industry to broaden its focus. Addressing the gap in skilled labor is undoubtedly important, but equal attention must be paid to developing and maintaining a pool of skilled management. The sustainability and growth of the industry hinge not just on the hands that build, but equally on the minds that lead.
