Why Small Factories Are the Future of MMC (and Why Mega Factories Are Holding Us Back)

The construction industry is finally catching up with the rest of manufacturing — embracing Modern Methods of Construction (MMC) to deliver higher quality buildings, faster and more sustainably. But while some companies are betting big on mega factories, history (and economics) suggest that smaller, distributed factories are actually the smarter, more resilient choice.

Here’s why small really is better.

1. Agility Beats Scale

Mega factories are built on the logic of mass production — huge volumes of identical products rolling off the line. But construction isn’t like automotive or electronics. Every building has unique design constraints, planning requirements, and local adaptations.

Small factories can pivot quickly, adjusting layouts, materials, or production methods to meet local project demands. When planning changes or regulations shift — as they inevitably do — smaller facilities can respond in days, not months.

In MMC, flexibility is profit.

2. Closer to the Project Means Lower Cost and Lower Carbon

One of MMC’s biggest sustainability wins comes from reduced transport and waste. But a mega factory located hundreds of miles from sites negates those gains. Shipping volumetric units or large panels across the country is expensive, slow, and carbon-heavy.

Smaller, regional factories solve this. By locating production closer to projects, they cut logistics costs, reduce emissions, and simplify just-in-time delivery. They also build stronger local supply chains and create jobs in the communities where the homes are built — not just where the shareholders live.

3. Smaller Factories Spread Risk

Mega factories are expensive — often costing tens of millions to build and requiring constant high-volume throughput to break even. That’s a dangerous position in a cyclical industry like construction.

A network of smaller factories distributes both operational risk and financial exposure. If one region slows down, others can keep running. If one plant needs retooling, the rest stay online. It’s a modular, scalable approach to manufacturing — much like MMC itself.

4. Smarter Use of Technology and Talent

Automation and robotics no longer demand cavernous spaces and massive capital investment. The latest digital fabrication tools are smaller, cheaper, and smarter — ideal for compact facilities producing high-value components with precision.

Small factories can specialize — one focusing on bathroom pods, another on structural frames, another on façade panels — creating an ecosystem of expert micro-manufacturers. This distributed innovation drives continual improvement across the network.

5. Community and Workforce Benefits

Mega factories tend to be isolated — both geographically and socially. Workers are often commuting long distances to monotonous, high-volume roles.

Smaller, local factories are human-scaled. They can partner with local colleges, offer apprenticeships, and provide stable jobs within communities. They become part of the local economy rather than an outpost of distant investors. In an industry facing a chronic skills shortage, that matters.

The Bottom Line

Mega factories look impressive in photos. They attract headlines and government grants. But when it comes to delivering real, sustainable, scalable MMC solutions — small factories win on almost every front: cost, flexibility, carbon, resilience, and community value.

The future of construction isn’t one giant plant stamping out homes. It’s a network of agile, local factories — producing smarter, faster, greener buildings for the communities they serve.