Abstract: A panel manufacturing machine adapted to produce panels of building blocks; the machine involving the formation of a horizontal course of blocks in end-to-end relation to each other with mortared head joints between ends of the blocks and with bed mortar on top of the blocks, which course is transferred as a unit to be assembled with other courses of blocks to produce a panel. Further, the machine can progressively sense a modular measurement longitudinally of said course to control the overall length of each course when assembled and mortared together.