Katerra, founded in 2015 by Michael Marks and Fritz Wolff, was a technology-driven off-site construction company that sought to transform the industry by manufacturing large building components, particularly for multi-family housing. The company focused on innovative techniques, including mass timber construction, to reduce costs and improve quality. Katerra received substantial backing, notably an $835 million investment from SoftBank in 2018. However, despite its ambitious plans and a workforce that grew to 7,500, Katerra struggled with operational inefficiencies, a lack of focus, and challenges in adapting to market needs. The COVID-19 pandemic exacerbated these issues, ultimately leading to its bankruptcy filing in June 2021.
Katerra's downfall underscores the complexities of integrating technology into traditional construction and serves as a cautionary tale for future ventures in construction technology.
