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Prefab construction company and tech startup Katerra is reportedly going through some "growing pains," including delays in production and design errors.
The Information reports that current and former employees attribute these concerns, and the lack of a completed major project using its end-to-end model, to a lack of experience in construction at the executive level, along with high turnover, "every day is a fire drill." Company chairman and co-founder Michael Marks tells The Information that the firm is, "doing great in all respects, growing revenue, increasing margins, breathtaking backlog, rapidly falling losses." Construction Dive reports that one positive sign for Katerra is the lack of reports saying the company is in arrears with its employees, suppliers, and subcontractors.
Most recently valued at $3 billion, Katerra has reportedly experienced production-based delays, high executive turnover and design errors that could potentially derail its mission to revolutionize the construction process, according to The Information. The company has raised more than $1 billion from major investors like Foxconn and SoftBank Group Corp., but has yet to complete a major project using its end-to-end design, manufacturing and construction model.
