Within the historic Kraus flooring factory in Waterloo, a group led by former tech executives is creating a new manufacturing model aimed at addressing Canada’s housing challenges.
Workers at Cabinovo are making progress on a modular housing complex for Kitchener, which marks the first step in an ambitious initiative to deliver zone-compliant missing-middle homes across the nation.
The long-term objective: to construct one million homes within 10 years.
The modular rental units are assembled piece by piece inside the facility before being transported on trucks to their final locations, where they can be stacked into place-turning an empty lot into a nearly completed housing project by day’s end with crane assistance.
A rendering of a completed townhouse by Cabinovo featuring two three-bedroom units and two one-bedroom units.
Cabinovo
Kitchener serves as the starting point, with the initial project expected to wrap up in January. It’s meant to demonstrate viability, and discussions with over 30 other municipalities are already in motion.
This plan is bold, but given Canada’s urgent need for fresh housing solutions, it couldn’t come at a better time.
In June, the Canada Mortgage and Housing Corporation projected that at least 4.8 million new homes must be constructed to restore housing affordability back to 2019 levels.
All tiers of government are exploring ways to encourage builders while cutting red tape; however, this requires doubling current construction rates.
Cabinovo executive chair Marc Morin understands what rapid scaling involves.
During the early dot-com boom, he co-founded Pix Stream and later sold it to Cisco for $550 million. He then joined Sandvine-acquired for $582 million-and recently served as CEO of Auvik Networks, raising $312 million from Great Hill private equity firm in 2021 before stepping down late last year.
Before his time at the University of Waterloo in the 1980s, Morin grew up in North Bay as the son of a developer who transformed old houses into apartments.
“You know those guys who would buy terrible homes and put in terrible apartments? That was my dad,” he said. “So I was always interested in rental apartments, but I didn’t like that approach.”
Around 14 years ago, he purchased an old motel in North Bay, demolished it, and aimed to build a 60-unit rental apartment building-“I like to say I bought Schitt’s Creek.”
He gathered a team but quickly recognized that the business plan was flawed and costs far exceeded any potential income.
This experience stayed with him. Once he left Auvik, his interest in housing resurfaced.
“He really just couldn’t help himself,” remarked Tim Martin, Cabinovo’s chief financial officer. “He was retired but felt compelled to start another business.”
Martin held senior finance roles at Black Berry during its prime before teaming up with Morin at Auvik for nine years.
After departing from Auvik, Morin pitched his latest idea to him.
“Instead of focusing on one project and pushing it through the system piecemeal, I thought: let’s apply my previous business strategies directly to housing,” explained Morin.
“That’s how it started; however I knew nothing about this sector initially. So I had to recruit the right people who could truly make this vision happen.”
A mutual connection introduced him to Derek Henderson-now president of Cabinovo-with over three decades of construction and manufacturing expertise including vice-president roles at Z Modular when they operated out of Kitchener.
The leadership team also includes Tyler Ulmer overseeing development; all homes will be owned and managed by Cabinovo-operated funds while some will eventually be sold off to third-party developers and affordable housing providers later on.
President Derek Henderson along with Tyler Ulmer (vice-president), Marc Morin (executive chair), and Tim Martin (chief financial officer) stand near housing modules at Cabinovo.
Mathew Mc Carthy/Waterloo Region Record
After acquiring the Waterloo factory last year, Cabinovo has designedand started production on both townhouse modelsand multiplexes -the townhouse includes two three-bedroom unitsand two one-bedroom unitswhile themultiplex features four three-bedroomunits.
There will be chancesto develop different models, but right now, the focus is refining detailsand determining optimal proceduresfor scalability.
Walkingthroughthe factorytodayrequiressome imaginationto graspwhatit will evolve into; workersare currently performing tasks thatwill eventuallybe automated, similar toparts assembly lines-think Toyota assembly linebut insteadof cars, housing.
The ultimate aimis establishing six distinctbuilding zonesfocusingon separateconstruction aspectsresultingina finished product.
They’ve partneredwith Triweco, a Swedish industrialmachinerycompany, to designthe warehouseand provideboth machineryand softwareensuringeach unitis identicalduringits manufacturingprocess.
Sweden sets thestandardfor modularconstructionwherecompanieslike Lindbäcks can produceprefabricatedhomeswithinjust30 minutes.
Unlike Lindbäcks usingwood frames, Cabinovowill utilize steelframesfor constructingits units.
These framesrequire no welding; they’re bolted togetherand havea lifespanof100 years, Hendersonmentioned.Due totheirblock constructionmethodon site, theunitscan alsobe relocatedandreassembledas communitieschangeandevolve.
Source link
President Derek Henderson along with Tyler Ulmer (vice-president), Marc Morin (executive chair), and Tim Martin (chief financial officer) stand near housing modules at Cabinovo.
Mathew Mc Carthy/Waterloo Region Record
After acquiring the Waterloo factory last year, Cabinovo has designedand started production on both townhouse modelsand multiplexes -the townhouse includes two three-bedroom unitsand two one-bedroom unitswhile themultiplex features four three-bedroomunits.
There will be chancesto develop different models, but right now, the focus is refining detailsand determining optimal proceduresfor scalability.
Walkingthroughthe factorytodayrequiressome imaginationto graspwhatit will evolve into; workersare currently performing tasks thatwill eventuallybe automated, similar toparts assembly lines-think Toyota assembly linebut insteadof cars, housing.
The ultimate aimis establishing six distinctbuilding zonesfocusingon separateconstruction aspectsresultingina finished product.
They’ve partneredwith Triweco, a Swedish industrialmachinerycompany, to designthe warehouseand provideboth machineryand softwareensuringeach unitis identicalduringits manufacturingprocess.
Sweden sets thestandardfor modularconstructionwherecompanieslike Lindbäcks can produceprefabricatedhomeswithinjust30 minutes.
Unlike Lindbäcks usingwood frames, Cabinovowill utilize steelframesfor constructingits units.
These framesrequire no welding; they’re bolted togetherand havea lifespanof100 years, Hendersonmentioned.Due totheirblock constructionmethodon site, theunitscan alsobe relocatedandreassembledas communitieschangeandevolve.Source link
