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INDUSTRY INSIGHTS
How Cuby's Contrarian Approach is Reshaping Construction's Future

Recently, we have been speaking to a number of different companies that are tackling the housing shortage. A lot of technology, time and effort has been invested into new methods of construction from pre-fabrication through to modular construction, robotics, digitsation and everything in between

One thing we have only very briefly come across is the idea of mobile micro factories. In short, these are small factories, setup near where a large homebuilding project is being undertaken. Inside the factory a team of workers fabricate the building components which are then palletized and sent to the construction site.

This, in our opinion, is one of the most exciting technologies that enable homebuilding. We’ve seen the continued failure of solutions like modular and we feel the guys at Cuby are truly onto something. In this article, we’ll explore Cuby’s thesis and technology and and why sometimes the most powerful innovations are the ones that work within existing constraints rather than trying to break them entirely. Let’s dive in:

The construction industry has a serious problem. There aren't enough workers who want to swing hammers, and costs keep rising. 

The typical solution? Build massive factories to automate everything. But Cuby, an innovative construction technology company, sees things differently. 

They're pioneering a radical new approach with mobile micro-factories that bring manufacturing directly to where homes are being built.

The Problem with Traditional Solutions

Most construction tech companies follow a familiar playbook. 

They raise hundreds of millions in venture capital, build enormous factories, and try to reinvent construction from the ground up. These gigafactories, often costing $50-100 million each, produce modular homes or building components that get shipped thousands of miles to construction sites.

This approach has consistently failed. 

The feedback loop is too slow, transportation costs are high, and when something goes wrong, it's incredibly expensive to fix. More importantly, the construction industry is notoriously conservative. Radical changes to building methods face enormous resistance from regulators, contractors, and developers.

A Different Way of Thinking

Cuby's approach starts with three contrarian principles that challenge conventional wisdom. 

First, they believe in decentralized manufacturing. Instead of one massive factory, they deploy smaller $12 million mobile micro-factories that service a 150-mile radius. This keeps manufacturing close to construction sites and allows for rapid feedback and adjustments.

Second, they don't try to reinvent construction itself. The end product looks exactly like a traditionally built home. This matters because it works within existing regulatory frameworks and doesn't require contractors or developers to change their fundamental approach. The innovation happens behind the scenes, in the manufacturing and assembly process.

Third, and perhaps most importantly, they focus on being cheaper than traditional construction from day one. While many startups follow the Tesla model – start expensive and work down – Cuby believes construction technology must be cost-competitive immediately. They've achieved costs around $100 per square foot, making their approach viable for mainstream adoption.

Inside the Mobile Micro Factory

Each Cuby factory employs about 265 people across two shifts. This includes both factory workers and field assembly teams. The key innovation isn't just the factory itself – it's how they've redesigned the entire construction process to work with primarily unskilled labor.

The system uses software to break down complex construction tasks into simple, repeatable steps. Workers rotate between different stations, guided by detailed digital instructions. This flexibility means the factory can adjust its workforce based on demand, something traditional construction struggles with.

A single factory can produce about 200 homes annually. The operation combines off-site component manufacturing with on-site assembly, all orchestrated through sophisticated software systems. They've essentially extended lean manufacturing principles from the factory floor to the construction site.

What This Means for the Industry

The implications of Cuby's approach extend far beyond just building homes more efficiently. Their model suggests a new way forward for construction innovation – one that works within existing industry constraints rather than trying to demolish them.

For developers and builders, particularly smaller operations that build 20-50 homes annually, this could level the playing field with large national builders. The economics of a mobile micro factory make sense at a much smaller scale than traditional prefab approaches.

For construction workers, this model creates new opportunities that don't require years of specialized training. It's a potential solution to the skilled labor shortage that doesn't rely on full automation.

The most exciting aspect might be the scalability. 

Cuby plans to deploy 275 factories over the next decade, each serving a local market. If successful, this could fundamentally change how we think about construction manufacturing.

The key lesson here isn't just about mobile factories or construction technology. It's about the power of questioning industry assumptions. Sometimes the best innovations don't come from revolutionary new technologies, but from rethinking how we deploy existing ones.

By keeping manufacturing local, preserving traditional construction methods, and focusing relentlessly on costs, Cuby has created a model that could actually work in an industry notorious for rejecting change. That might be the most revolutionary thing about their approach.

For industry professionals watching this space, the takeaway is clear: sometimes the most effective innovations are the ones that work within existing constraints rather than trying to break them. 

Check out the full episode with Aleksandr Gampel👇👇👇

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