A capital-light, local model could power this off-site builder’s plan to scale

While numerous firms in the residential off-site construction space push the limits of innovation, one company is distinguishing itself through a deeply localized approach to expansion across North America.

Massachusetts-based Reframe Systems is betting that its microfactory concept, which relies on relatively small facilities in different markets, can deliver housing more efficiently. These microfactories can be operational within a few months and at a fraction of the cost of a traditional factory. Using this approach, the company says it can construct housing quickly and react to demand with agility. 

Founded in 2022 by former Amazon Robotics executives, Reframe Systems is close to completing its first full-scale microfactory in Massachusetts. Building on that momentum, executives are also in talks to bring their innovative building concept to markets across the country. 

The journey from Amazon to Reframe Systems

Before co-founding Reframe Systems in 2022 with Aaron Small, Head of Operations, and Felipe Polido, Head of Tech, CEO Vikas Enti worked at Amazon Robotics for more than a decade, alongside his cofounders. While there, he and his team developed mobile robots and software to make Amazon’s warehousing and e-commerce operations more efficient. 

Towards the end of his time at Amazon, Enti’s work aided Amazon’s shift away from relying solely on huge one-million-square-foot fulfillment centers to a hybrid strategy that also utilizes micro facilities. 

That experience, Enti explained, laid the groundwork for Reframe System’s innovative microfactory concept.

“My team jokes that I went from shipping small boxes to shipping big boxes,” Enti joked. 

The microfactory concept

Reframe Systems currently has a prototype-scale, 16,000-square-foot facility in Massachusetts, but its first full-scale microfactory facility in the Boston area is set to deliver during Q3 of this year. 

The typical microfactory will be roughly 50,000 to 65,000 square feet, about equivalent to the size of a garden center at The Home Depot. A facility of that size can produce up to about 250 single-family homes or roughly 500,000 square feet per year using modular and panelized construction methods.

In the future, Reframe Systems envisions microfactories in markets across the country, rather than a single large centralized facility. This strategy allows for a localized approach, with factories within about an hour of most job sites, thereby reducing logistical bottlenecks and shipping costs.               

One of the main benefits of the microfactory concept is that it can be operational quickly and at a relatively low upfront capital cost. According to Enti, the microfactory under construction in Massachusetts will cost about $5 million in equipment, far less than many competing factories of a similar size.      

Cost savings come from replacing complex, expensive automation with streamlined robotic systems powered by machine vision and simple material flows. It also simplifies operations with vertical panel handling and modular workflows that require less space, equipment and capital investment. 

Because the microfactory relies on compact, decoupled robotic work cells rather than massive conveyor-based setups, the facility can also be deployed and scaled much faster than traditional facilities. The microfactory can be operational in about 100 days, allowing Reframe Systems to react quickly to demand in new markets. 

For now, the Reframe Systems factory automates about 20% of the construction process, but the company sees a path to automating about 65% of tasks in the near future. Today, robots autonomously frame and assemble panels that serve as the building blocks of each module, with all internal systems installed and finished on-site at the factory. 

Reframe Systems’ growth trajectory

Reframe Systems has built eight housing units in total. Most are in Massachusetts, but two are on their way to the Los Angeles area as part of the Altadena rebuild. Those units, a bungalow and an ADU, will be set on site later this month. 

The company delivered its first home in 2024 and completed seven units in 2025. This year, Reframe Systems expects to deliver a total of 48 units, mostly in the Boston area. That includes a 12-unit single-family development and a five-story multifamily building that is set to break ground by Q4. 

If all goes according to plan, the company could deliver about 200 units next year, primarily in New England, utilizing the new factory. The pilot program in California is ongoing, and the team is in discussions for a pair of other potential pilot programs elsewhere. 

Ultimately, the idea is to have microfactories in various markets throughout North America. Over the next several years, the company’s focus will be on markets where the cost of construction exceeds $300 per square foot. 

To that end, there’s been quite a bit of interest in areas on the coasts, as well as certain pockets in Colorado and Utah. This interest has already translated into action, as Reframe Systems just signed its first joint venture agreement with a developer in Vancouver, British Columbia. 

There aren’t yet exact timelines for when facilities in Vancouver or Southern California will be built, but there is clearly momentum in those markets. As Enti explained, ”demand must precede capacity” before any new microfactory is built. 

“Typically, our developers are willing to commit to a multi-year off-take. So that gives us the base load demand to be able to then respond with the factory, knowing that the factory is going to be profitable with that demand curve,” he said. 

Last year, Reframe Systems raised $20 million in Series A funding, co-led by Eclipse and VoLo Earth Ventures. As the company expands its geographic reach and scales, the overarching goal is to substantially lower production costs by 2030 so that the Reframe Systems model becomes more widespread. 

“Our goal is that, by that point in time, our cost curves will have come down to less than $100 a square foot, which then allows us to be a viable solution, even for production builders and in the Sun Belt. Our stated goal is to be able to open up the production builder market. Today, we’re very focused on infill housing and high-cost markets, where we also get points for being fast,” he explained. 

The future of off-site construction

The off-site construction niche has attracted significant investment and attention in recent years, but it hasn’t yet become a growing market. According to data from the National Association of Home Builders, only 3% of single-family homes delivered in 2024 used modular or panelized/pre-cut construction methods. 

So, what needs to change for off-site construction methods to gain more market share? Enti described Reframe System’s mass customization capabilities as a competitive edge that others in the industry should take note of. The company’s system is adaptable for multifamily housing, single-family homes, townhomes, ADUs and disaster-relief housing. 

“Broadly, from a capability standpoint, we need off-site companies to further embrace the fact that this is a mass customization problem and not a mass production problem. Something like that requires folks to move away from assembly lines and think more about matrix manufacturing and distributed work cells,” Enti explained.

On the policy side, Enti notes, there are some strong tailwinds. Government authorities are allowing third parties to handle not just factory inspections but also local permits and approvals, which would make permitting far more predictable. Federal policies such as the Road to Housing Act are also enabling more suitable financing approaches for factory-built housing.