Factory OS

Factory OS operates as a pivotal player in the modular construction sector, specifically targeting the housing affordability crisis by manufacturing multifamily modular homes. Founded in 2017 by industry veterans Rick Holliday and Larry Pace, the company is strategically located in a former naval shipyard on Mare Island in Vallejo, California. Holliday, a long-time affordable housing developer with a background that includes co-founding BRIDGE Housing, was nearing retirement when a request from Google to build 300 modular homes spurred the creation of the company. Pace brought extensive experience as a general contractor and founder of Cannon Constructors North. Their combined expertise addresses the inefficiencies they witnessed over decades in the traditional construction industry.

The company's business model is centered on an off-site, factory-based assembly line process to construct complete apartment units. This method allows for simultaneous on-site foundation and preparation work, dramatically accelerating project timelines. Factory OS reports that its approach is 20-40% less expensive and 40-50% faster than conventional construction methods. Revenue is generated by working directly with developers, who are the primary clients, rather than owning the final buildings. The company has attracted significant investment, raising a total of $138 million from backers including Autodesk, Citi, Google, Facebook (Meta Platforms), Morgan Stanley, and JPMorgan Chase.

The core service involves a 33-step manufacturing process where raw materials are transformed into fully outfitted modules—complete with plumbing, electrical, and finishes—which are then transported and stacked on-site. This controlled factory environment ensures higher quality control and reduces material waste by as much as 70%. Primarily focused on affordable housing, approximately 80% of its projects serve populations such as the formerly homeless, low-income workers, and students. To foster industry-wide advancement, Factory OS has partnered with UC Berkeley's Terner Center for Housing Innovation to host an Innovation Lab, dedicated to developing greater efficiencies in off-site construction.

Keywords: modular construction, affordable housing, off-site construction, multifamily housing, construction technology, prefabricated homes, real estate development, housing crisis solution, sustainable construction, volumetric modular, union labor jobs, social impact investing, lean manufacturing, Autodesk partner, housing innovation, Vallejo California, Rick Holliday, Larry Pace, urban housing, advanced manufacturing