What Actually Kills Makerspaces (And What Keeps Them Alive)

Mar 18, 2026

MakerVera Team

The MakerVera Team

TechShop was the poster child for the makerspace movement. Ten locations across the U.S., 9,000 active members, partnerships with DARPA, Samsung, and the VA¹, and millions in venture capital and corporate partnerships.² In November 2017, they shut down every domestic location overnight with no warning and filed for Chapter 7 bankruptcy.³ Members showed up to locked doors with their projects and belongings trapped inside.⁴

The CEO’s postmortem was blunt: a for-profit chain of makerspaces was “impossible to sustain” without outside subsidies.⁵ TechShop had tried to pivot to a licensing model but ran out of cash before the transition could take hold.⁶

TechShop is the most visible example, but it’s far from the only one. Toronto’s MakeWorks — a 10,000-square-foot co-working and fabrication space in a restored factory — closed after years of trying to find a sustainable model. Their announcement was straightforward: “the main driver is economic.” The space was replaced by a Dollarama.⁷ The Hacktory in Philadelphia⁸, Hacker Lab in Sacramento⁹ — all gone. Maker Media, the company behind Make magazine and Maker Faire itself, ceased operations in 2019 before being partially revived under new ownership.¹⁰

The maker movement is alive and growing. But staying open is harder than it looks. Understanding why is worth the time if you’re running one.

The patterns

Makerspace closures tend to follow a few recurring threads.

Membership dues alone don’t cover the bills

The membership model has a built-in ceiling: the more members you add, the less equipment availability each member gets, which reduces the perceived value of membership, which increases churn. The founder of MakerLabs in Vancouver pointed out that TechShop “didn’t do a great job of monetizing tools and they didn’t provide fabrication services, which would have resulted in additional revenue streams.”¹¹ Spaces that depend entirely on monthly dues are running on a treadmill that speeds up every time they grow.

Engagement drops off and nobody sees it coming

Even well-intentioned spaces aren’t immune. The University of South Carolina’s engineering makerspace — a free campus resource, not a paid membership model — closed in 2023 after attendance declined to the point where leadership decided the resources were better used elsewhere.¹² The space’s former overseer said she’d “pondered over what I should have done differently, what I should have done better.” The dynamics are different in a paid community space, but the core problem is the same: declining engagement is rarely sudden — it’s a slow bleed that’s hard to spot if you aren’t tracking usage patterns. By the time someone notices the shop is empty on Tuesday nights, the trend has been underway for months.

Spaces expand too fast on the wrong model

TechShop raised venture capital, which created pressure to expand quickly across multiple cities.¹³ That’s the opposite of how most successful community makerspaces grow. The spaces that last tend to grow organically — adding equipment as demand justifies it, expanding square footage when the existing space is genuinely maxed out, and building programming before building inventory.

Rent goes up, and there’s no cushion

Gentrification and redevelopment don’t care about your community impact. MakeWorks got replaced by a dollar store.⁷ Artists and makers in Vancouver’s Downtown Eastside face “steady erosion of space owing to rising rents and redevelopment.”¹¹ A space with thin margins and no financial reserves has no ability to absorb a rent increase, let alone a relocation.

Key people burn out and leave

Makerspaces depend heavily on a small number of dedicated operators and volunteers. When the person who manages billing leaves, or the volunteer who runs all the training classes moves away, the gap can be enormous — especially if their knowledge lived in their head, their inbox, or a personal spreadsheet that nobody else understands. Institutional knowledge walking out the door is one of the quietest ways a space starts to unravel.

External shocks hit hard

The pandemic wiped out half to two-thirds of memberships at some spaces overnight. Urban Workshop, one of the largest makerspaces in North America, saw most of its adult programming go to zero and all but two original staff members quit in the early days of COVID.¹⁴ Spaces with diversified revenue and low operational overhead weathered it better than those running on dues alone.

What the survivors have in common

The spaces that make it through tend to share a few traits — and none of them are surprising once you’ve seen enough closures.

Multiple revenue streams

Classes, workshops, events, retail (consumables, filament, materials), fabrication services, corporate and school group packages, donations, and grant funding. Membership dues are the foundation, but they can’t be the whole building. The spaces that thrive treat every module of their operation as a potential revenue line, not just a cost center.

Consistent programming

Classes and events do two things: they generate revenue directly, and they give members a reason to stay engaged. A space that runs a packed calendar of workshops, safety trainings, guest speakers, and open build nights is a space where members renew. A space that’s just an open room with equipment is a space where people drift away after the novelty wears off.

Visibility into the numbers

Knowing how much revenue came from classes versus memberships versus store sales last quarter isn’t a luxury — it’s how you make decisions about where to invest your limited time. Spaces that can see a membership tier underperforming, or a class series generating outsized revenue, can adjust before a slow decline becomes a crisis.

Low operational friction

Every hour an operator spends manually reconciling payments, updating spreadsheets, or chasing members about lapsed dues is an hour not spent on community building, programming, or fundraising. The spaces that survive are the ones that find ways to reduce the administrative load so that their small teams can focus on the work that actually keeps people coming back.

Knowledge that doesn’t depend on any single person

Authorizations tracked in a system, not a binder. Billing managed by software, not by whoever happens to remember. Event workflows that a new volunteer can pick up in an afternoon, not a week of shadowing. When your operations live in systems rather than in people’s heads, your space can survive turnover — which it will inevitably face.

Where software fits — and where it doesn’t

Software doesn’t fix rent increases. It doesn’t replace community leadership. It doesn’t make people care about making.

But it does determine how much of your team’s time goes to operations versus the things that actually keep a makerspace alive. If billing, member management, class scheduling, authorization tracking, and reporting are all manual processes spread across five different tools, your operational overhead is enormous — and it scales with every member you add.

MakerVera was built for this problem. Memberships, events, store sales, and donations feed into a single reporting view so you can actually see where your revenue comes from. Automated billing catches failed payments before they become lost members. Class and event management is streamlined enough that running consistent programming doesn’t require a full-time events coordinator. Authorization and access control update automatically when members complete training, so volunteer turnover doesn’t create safety gaps.

The goal isn’t to automate away the human side of running a makerspace. It’s to clear the operational clutter so that you have time for the work that makes a space worth showing up to.

MakerVera is an all-in-one makerspace management platform for membership billing, equipment booking, training authorizations, access control, event ticketing, and volunteer tracking. Learn more at makervera.com.

Sources

“Additional partnerships included Samsung, Instructables, Cortex, FutureWorks NYC, the U.S. Department of Veterans Affairs, National Instruments, and DARPA.” Wikipedia: TechShop. See also DARPA-funded TechShop location to open in Arlington, VA, Engadget, Oct 2013. ↩
TechShop’s corporate partnerships included Ford and Autodesk (Detroit location), DARPA ($3.5 million investment for DC and Pittsburgh locations), and the VA. The company reported $14 million in revenue in 2015. TechShop files Chapter 7 Bankruptcy in San Jose, Dec 2017. See also DARPA crowd-sourcing new technologies through makers, 3ders.org, May 2012. ↩
TechShop to close all U.S. locations immediately, Pittsburgh Post-Gazette, Nov 2017. ↩
“The company would arrange for dates and times when members could remove personal materials and projects.” TechShop Declares Bankruptcy, Shutters SoMa Location, Hoodline, Nov 2017. ↩
“A for-profit network of wholly owned makerspaces is impossible to sustain without outside subsidy from cities, companies, and foundations.” Dan Woods, CEO. TechShop Closes Doors, Files Bankruptcy, Make: Magazine, Nov 2017. See also Fast Company, Nov 2017. ↩
“We invested too many years and too many dollars trying to prop up the wrong business model.” Dan Woods, CEO. Makerspaces under pressure to revamp business models, The Globe and Mail, Jul 2019. ↩
“Toronto’s MakeWorks announced recently it will close… stating ‘the main driver is economic.’ …being replaced with a Dollarama.” Makerspaces under pressure to revamp business models, The Globe and Mail, Jul 2019. ↩ ↩²
The Hacktory shuts down, ends ‘all programming for the foreseeable future’, Technical.ly, Jul 2018. ↩
“The organization was unsustainable in its current form.” Hacker Lab operated for a decade in Sacramento with up to three locations before announcing closure in 2022. Maker Space Cuts New Path, Comstock’s Magazine, Aug 2022. ↩
Maker Media Inc. laid off all 22 employees and ceased operations in June 2019. Founder Dale Dougherty subsequently bought back the assets and relaunched as Make Community with 15 rehired staff, but the original company did not survive. Maker Faire halts operations and lays off all staff, TechCrunch, Jun 2019. See also Bankrupt Maker Faire revives, reduced to Make Community, TechCrunch, Jul 2019. ↩
Derek Gaw, CEO of MakerLabs. Makerspaces under pressure to revamp business models, The Globe and Mail, Jul 2019. ↩ ↩²
Makerspace engineering workshop closed in December despite student petition to save it, The Daily Gamecock (University of South Carolina), Jan 2024. ↩
Derek Gaw, CEO of MakerLabs. Makerspaces under pressure to revamp business models, The Globe and Mail, Jul 2019. ↩
Steve Trinidade, Urban Workshop. Making in a post-pandemic world, Shareable, Dec 2021. ↩