flexiblefullpage - default
Currently Reading

Entekra Exit: The Off-Site Construction Company Will Shut Down by June 30

Advertisement
billboard - default
Off-Site Construction

Entekra Exit: The Off-Site Construction Company Will Shut Down by June 30

Off-site home construction company Entekra, which is majority-owned by LP, fails to get new capital investment and will close as a result


By Pro Builder Staff April 26, 2023
June 30 date pinned on calendar marks Entekra company closing down
Entekra will fulfill its obligations to builders that had ongoing projects with the company by June 30. | Image: xtock / stock.adobe.com

Off-site construction start-up Entekra will wind down its operations by June 30, 2023, according to a statement released on April 24 by the company's board of directors and obtained by The Builder's Daily. The company expects that by the end of June, it will have fulfilled its final obligations to builders that had ongoing projects in the Northern California region. 

Pushing Home Building Toward Off-Site Construction

Founded in Ireland in 2015, Entekra launched its U.S. operations in 2016 in Ripon, Calif., operating a manufacturing plant there. The company debuted its first home in August 2017, and its prefabricated panelized construction systems promised to be a game-changer for the residential construction industry. By leveraging engineering, technology, software, and modern construction techniques, Entekra aimed to eliminate on-site stick-framing's inefficiencies.

Northern California home builders such as A.G. Spanos, Beazer Homes, Van Daele Homes, and Wathen Castanos, among others, used Entekra's fully integrated off-site solution (FIOSS), which was becoming a driving force in the residential construction industry's move toward automated off-site wood framing for homes.

Unlike existing off-site construction solutions in the U.S. market, which concentrated on providing home builders with off-site building components, Entekra's European-inspired approach delivered a whole-house concept, providing all of the structural elements of a building—prefabricated wall and floor panels, roof trusses, and all relevant materials—ready for on-site assembly.


RELATED


In a 2017 interview with Pro Builder, Entekra's founder and the CEO at the time, Gerard McCaughey, discussed this "European perspective of off-site construction that looks at building from a holistic point of view," and he had the experience and success to back it up, having built more than 8,000 units a year in the U.K. using off-site methods before selling his company, Century Homes—Europe’s largest off-site building manufacturing company—to Kingspan Group in 2005. 

In fact, Entekra's management team at the time of the start-up's launch consisted of key executives from Century Homes who had deep experience in FIOSS and held a number of patents in Ireland for the manufacturing process and related equipment. 

In that interview with Pro Builder, McCaughey also stressed how important the design and engineering aspects of the off-site process were to the company: "We think of ourselves as a design and engineering company that happens to have manufacturing bolted on. We don’t think of ourselves as a manufacturing company. Our value is in our design and engineering."

Plenty of Support, Initially

In May 2018, building materials giant Lousiana-Pacific (LP) invested $45 million in Entekra, and then became a majority owner in 2021. A reorg followed in October 2021, and Neil Sherman, LP's EVP and general manager of LP Siding, transitioned to lead Entekra as its president, while founder Gerry McCaughey continued as chairman.

Among its accolades, The National Association of Home Builders' Leading Suppliers Council named Entekra its 2019 Manufacturer of the Year and the company won the 2020 Ivory Prize for Housing Affordability.

In the April 24 statement obtained by The Builder's Daily, Entekra’s board of directors pointed out that the company's long-term success required "scalable operations through regional expansion and greater capacity." That, in turn, necessitated increased capital investment, but the off-site manufacturer couldn't summon sufficient external investment interest, resulting in the board's decision to cease Entekra's operations and dissolve the company. 

LP says it will now focus on investing in its own core businesses such as LP Structural Solutions and LP Smartside Trim & Siding.


RELATED


Entekra Facilities and Layoffs

In 2018, Entekra opened a new European headquarters and training facility in Monaghan, Ireland, while its U.S. base in California was in Ripon. It then built a $35 million headquarters and 200,000-square-foot U.S. manufacturing facility in 2019 in nearby Modesto, Calif., that the company said was capable of producing 3,000 homes per year. 

The shutdown will affect up to 240 Entekra associates; 200 of those in the U.S. in the Modesto manufacturing and distribution center, and 40 in Monaghan.

The board's statement specified: "To demonstrate the company’s appreciation of its employees, all employees will be provided severance benefits based on their tenure and position and will be eligible for unemployment benefits. Employees will also be provided with health insurance coverage for two months after leaving the company and offered job placement services at no charge."

 

Advertisement
leaderboard2 - default

Related Stories

Off-Site Construction

What's Standing in the Way of Home Builders Adopting Off-Site Methods?

Findings from Home Innovation Research Labs show home builders continue to embrace the status quo when it comes to adopting new methods, but results vary by builder type and region

Off-Site Construction

What's Needed to Ensure Modular Construction Companies Succeed?

Factory-built housing is increasingly being hailed as a solution to the housing shortage and affordability crisis, but the companies building those homes are failing

Design

Attainable Housing Solutions (and More) at IBS 2024

A handful of homes at Pro Builder’s Show Village at IBS 2024 offer a path forward for providing high-quality, lower-cost housing nationwide

Advertisement
boombox1 -
Advertisement
native1 - default
halfpage2 -

More in Category

Delaware-based Schell Brothers, our 2023 Builder of the Year, brings a refreshing approach to delivering homes and measuring success with an overriding mission of happiness

NAHB Chairman's Message: In a challenging business environment for home builders, and with higher housing costs for families, the National Association of Home Builders is working to help home builders better meet the nation's housing needs

Sure there are challenges, but overall, Pro Builder's annual Housing Forecast Survey finds home builders are optimistic about the coming year

Advertisement
native2 - default
Advertisement
halfpage1 -

Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.


Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Subscribe
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.