Best Warren Buffett, Kevin Clayton, Clayton Homes, Berkshire Hathaway Annual Meeting, Competition, and “the Moat” Video Collection

April 22nd, 2018 No comments

Warren Buffett’s Annual Letter to Berkshire Hathaway Shareholders, and their annual shareholders meeting, are writ large on the calendar for investors.  The same can be said for professionals who are in or researching – or in – the manufactured home industry.

BestWarrenBuffettKevinClaytonClaytonHomesBerkshireHathawayAnnualMeetingCompetitiontheMoatVideoCollection

Clayton Homes – led by company founder Jim Clayton’s son, Kevin Clayton – become the largest producer of manufactured homes the year that Berkshire Hathaway Chairman Warren Buffett bought the company in 2003. It became the largest builder or HUD Code manufactured homes later that same year – 2003 – when Buffett’s Berkshire purchased Oakwood Homes, and rolled it into the Clayton ‘family of brands.’

Warren Buffett, and Bill Gates
compete in the annual newspaper toss
to a Clayton Homes front door at shareholders meeting.

That was one of an ongoing string of acquisitions since then, which in more recent years have included purchases of site-builders, as well as other factory producers.

Kevin Clayton talks about barracks for the military, tiny homes
annual Berkshire Hathaway shareholders meeting.


 

Why did Buffett do all this?  Why has he endured the ‘drama’ that has gone along with Clayton Homes and manufactured housing?

Pay close attention to what you see, hear and read, and you’ll get it.  Short answer?  Listen to Buffett explain his own principles. Mr. Buffett wants a business that is easy to understand. He wants a business with “a moat.”  During an affordable housing crisis, what business is easier to understand than manufactured homes?

Short Warren Buffett On Clayton Homes
Allegations of Discrimination, CNBC

Two quick quotes, and then on to the rest of the videos.

I call investing the greatest business in the world … because you never have to swing…All day you wait for the pitch you like; then when the fielders are asleep, you step up and hit it,” – Warren Buffett, per Wikiquotes.

Draw a circle around the businesses you understand and then eliminate those that fail to qualify on the basis of value, good management, and limited exposure to hard times.” Warren Buffett, in “About Investing.

Kevin Clayton, Clayton Homes CEO
on military barracks, tiny houses more…Fox Business.

 

Warren Buffett, Kevin Clayton, Clayton Homes Related Videos

For those in or new to manufactured housing, these videos offer a peek inside the world of Berkshire, and their dominance of manufactured home:

  • construction,
  • retail,
  • lending,
  • suppliers,
  • insurance and other financial services arena.
  • You’ll also get a peak into their move towards conventional housing, and they were already doing modular home construction.

Berkshire Hathaway’s
Clayton Homes Moving into New Conventional Housing Markets
– The Street

 

Warren Buffett’s “The Moat” Strategy – How to Dominate Competitors, in Buffett’s and Kevin Clayton’s Own Words

For those who are researching concerns over monopolies or alleged monopolistic practices – and how that had played out in manufactured housing – the videos below are must viewing.

Warren Buffett, Berkshire Hathaway Chairman,
Competitive Advantages and “The Moat” per Buffett, Video Interview Clips
– MHLivingNews.com

 

For those looking for a deeper dive in reading and research on related topics, the links below provide arguably the most comprehensive research by an informed, pro-industry expert and witness to the evolution of the industry from its early days as trailer houses, to the mobile home era, and to industry since June 15, 1976, when it formally became HUD Code regulated manufactured housing.

 

The solution to the affordable housing crisis is hiding in plain sight. That’s been a subtext for closing in on a decade on MHProNews.com as well as on our public focused sister site, ManufacturedHomeLivingNews.com, both of which also looks at modular, prefab, conventional, and pre-HUD Code mobile homes.

For first timers, to industry veterans, this is the number one site of its kind. Who says?  Besides third party traffic data, there’s the widespread praise for these twin platforms that has flowed for years from many pros, including from the founder of Clayton Homes, Jim Clayton, as well as from independents and others.  The video praised captured below is just a sampling of spoken and written praise.

 

 

While we are pro-industry, we are also pro-consumer, and are strong believers in free enterprise.

Kevin Clayton Interview, Warren Buffett’s Berkshire Hathaway,
Clayton Homes CEO, Manufactured Homes, Affordable Housing News – MHProNews

Unlike much of the trade media in our industry, we do not shy away from controversial topics. So, for example, the question of the impact of alleged monopolistic practices by Buffett, Berkshire and Clayton Homes, or other charges against the company are among topics we’ve closely examined for years.

We hope you learn, and enjoy.  “We Provide, You Decide.” ## © (News, analysis and commentary.)

(Third party images are provided under fair use guidelines.)

Related Reports:

Manufactured Housing – Regulatory, Other Roadblocks and Potential Solutions, Up for Growth Research, plus Urban Institute Report Revisited

 

To provide a News Tips and/or Commentary, click this link. Please note if comments are on-or-off the record, thank you.

Marketing, Web, Video, Consulting, Recruiting and Training Resources

 

FactoryBuiltCarsClothingAppliancesElectronicsCellsSmartPhonesHomesItJustFollowsLATonyKovachC2017MHproNewsBy L.A. “Tony” Kovach – Masthead commentary, for MHProNews.com.

Tony is the multiple award-winning managing member of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com.

Office 863-213-4090 |Connect on LinkedIn:
http://www.linkedin.com/in/latonykovach

Sign Up Today!EmailedMHProNewsHeadlineNewsDailyBusinessNews

Click here to sign up in 5 seconds for the manufactured home industry’s leading – and still growing – emailed headline news updates.

L.A. 'Tony' Kovach, MHM - Publisher, Marketing Director and Industry Consultant
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Manufactured Home Marketing Sales Management trade journal
www.MHMarketingSalesManagement.com aka MHMSM.com aka MHProNews.com
tony@mhmsm.com
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Happy MH Owners? Good Professional Actors? Overlooked, “Honorable People”

April 11th, 2018 No comments

ManufaturedHousingIndustryHappyHomeOwnersGoodProfessionalActorsHonorablePeopleMastheadCommentaryMHProNews550

Executive summary. To solve a problem, to tap an opportunity, one must discover the root causes and address those core issues.

 

There are numerous untold stories in the manufactured housing industry.  

The common stories read and seen in mainstream news tend to leave the uninformed with the impression that manufactured home owners got a raw deal and are routinely troubled by bad actors in this industry.

Bad actors and raw deals exist, but they are the exception to the rule.

 Kitchen-dining-living-room-kabco-tunica-show-32x70-manufactured-home-living-news-comMastheadMHProNews

 

Positive, Routinely Untold Manufactured Home Stories

The routinely untold story is that millions of manufactured home owners love their homes. The majority of people love their community, if the live in a land lease.

Manufactured homes can exist wide by side with conventional housing, and with the proper installation, strangers don’t even realize it.

We’ve interviewed owners of true mobile homes, that may be able to buy nothing more, and they love their home. We’ve interviewed millionaires who love their manufactured homes.  Then there are all those in between. We’ve also interviewed pros from small companies to the corporate giants.  The majority of all of these are just good, honorable people.

There is no doubt that there are so-called ‘bad actors’ among the ranks of those working in manufactured housing. But they exist in other professions too. They are the exception that demonstrates that most others in MHVille are honorable people, striving to make an honest living.

Thousands of the industry’s professionals were beat down badly following the slide from the industry’s most recent high in 1998.

That meant there was a need in 2009 to bring a positive energy back into manufactured housing.

TheManufacturedHomeIndustryItsTooGoodToBeTrueThatsAPhenonenonRonThomasSrRonaHomesPriorLouisvilleShowChairman

As RV MH Hall of Fame inductee Ron Thomas, Sr. said in those days, ‘we need a new baseline to measure from.’

Thomas, for those who know him, is a can do type. He looks for solutions. He’s an optimist.  He has joy in his heart, and a love for this industry.

From Entry Level to Elegant – Inside Look at the Louisville Manufactured Housing Show

RonThomasSrManufacturedHomeLivingNewsMastheadManufacturedHomeIndustryCommentaryMHProNews

Optimism and “can do” were necessary in the days when the industry canceled the Louisville Manufactured Housing Show in 2010 – the first time that occurred in its 5 decade run. 

What some today forget, is that in 2010, the show had been sliding backward for years. It was thought the show was dead, never to return.

We proudly played a part in the shows recovery and did so for many years. The kind messages of thanks from industry pros involved with the show are a reminder of what is real.

We too are manufactured home optimists. We too are believers in this MH Industry.

The industry is now years into its recovery. It is no longer about happy talk, as pleasant as that is.  It MUST be about reminder of our industry’s GREATNESS and POTENTIAL again. MH Pros and investors must recall or learn about our industry’s “Glory Days.”

Tunica, Nashville Trade Shows and Manufactured Housing Glory Days

It must also accept that most homeowners are happy about their home.

On ManufacturedHomeLivingNews.com, for years the effort has been to spotlight the good news about manufactured homes.

ManufacturedHomeLivingNewsHomePage4112018MastheadBlogMHProNews

The MHLivingNews home page on 4.11.2018 https://www.manufacturedhomelivingnews.com/

It was the industry’s first and still primary vehicle of its type for a reality based story.  There has always been promotion of individual businesses and communities. There has been some periodic efforts at image building in places, such as the Northwest Pride campaign, or events in California.

There are several state associations, retailers, or groups today that take homes to home shows, for crowds of everyday people to experience.

All of those are necessary and good.

But the statistics tell an MH realist that it isn’t enough. The following are a slam, they are reality checks.  Clayton produces slick videos.  Some have hundreds of thousands of views. Millions of views total, millions of contacts with possible consumers. Yet last year, Clayton only did a total of some 48,000 homes sold. 

The same is true at MHVillage, which has Dan, Darren, Dawn and company – very pleasant and intelligent people, all.  At Tunica, Darren Krolewski said publicly and privately the following.  They had some 25,000,000 unique visitors last year.  About $3 Billion in total home sales, of about 80,000 new and used homes. 

Impressive. 

NumberNewHousesSoldInUS1995to2016DailyBusinessNewsMHProNews

Just the FACT$

Or is it?  Doesn’t it hide facts that should trouble the industry?  80,000 sales means the average home sold was $37,500.  That’s typically a use home, relatively small numbers of new homes are being sold there. Divide 25,000,000 by 80,000 = 0.0032.  That means, less than 1/3 of 1 percent of visitors are pulling the trigger.

DarrenMHVillageMastheadBlogDailyBusinessNewsmHProNews_001

1/3 of 1 percent of MHVillage visitors are buying. The average sales price is $37,500, using Darren’s talking points. That means few new home sales, and low conversion rates. Don’t get me wrong, good for MHVillage. But objectively seen, it’s yet another warning sign for the industry. At the heart of this, our research shows the issue is educational…it’s the inaccurate perceptions. It’s image.

If you went into the CNBC Shark Tank with the industry’s statistical breakdown of low – 1/3 of 1 percent conversions of leads – those investor sharks would laugh the presenters out of the room.

There is clearly missing pieces to the industry’s recovery.

That’s reality. Two analogies.

  As an optimist who doesn’t quit, I don’t walk into the rain without an umbrella.

  You don’t listen to a doctor tell you that the tests reveal that you have cancer, and then hope it will go away.

The wise optimist is reality based, goal and solution oriented.

ExecutiveSummaryToSolveProblemTapOpportunityOneMustDiscoverRootCausesAddressCoreIssuesMastheadManufacturedHousingIndustryCommentaryMHProNews

 

Tony…the industry hasn’t done jack sh-t when it comes to image…”

The above was part of a longer message from a successful and well known retailer.  The industry veteran went on to say how glad he is that we are trying to do something about the image of the industry.

Without credibility, there is no story telling-worth it’s salt.

Even though mainstream media is often doubted and disliked, there are some reports that ring true for Americans.

Frank Rolfe admits to violating his own premise that the nomenclature about manufactured homes needs to change.

 

 

That said, Rolfe’s correct in saying that most Americans have no clue about manufactured homes today. Their image is based upon 8 Mile, or the Trailer Park Boys, or the local news reports.

That’s reality. Savvy, goal and solution oriented pros must deal with it.

 

 

The solution is both simple and nuanced.

  The truth must be presented.

  The falsehoods must be refuted.

  Where they exist, real problems must be addressed.

That isn’t done with one video, or one story. It’s not done by pretty pictures or even slick 3D productions. Don’t get me wrong! Those can help.

NewExistingHomeSalesDailyBusinessNewsMastheadManufacturedHousingIndustryCommentaryMHProNews

Existing home sales have pushed beyond 5.5 million units a year. New conventional, site built sales are moving toward 600,000 single family homes.  That’s not counting multi-family housing construction. 

But so long as most people believe that manufactured homes are made out of cheap materials – or are as a regional news source said recently “wobbly boxes” – people will suspect that its lipstick on a pig.

That’s not negative. It’s reality.

When the Louisville Show turned to us for help with marketing their event, we delivered.

Others who have worked with us, know that we deliver.

There are voices in the industry who years ago worked to undermine what we are trying to do. You have to ask, why?

That was long before we began to spotlight internal industry issues. So you can’t say they retaliated for something. It was long after that began that those fact checks of internal industry claims began.  By the way, those fact check stories have helped spur certain organizations to act better; not well, but better. We’re proud of our part in that effort to advance the industry.

But the entire time, we’ve kept up the good news of manufactured housing reports on MHLivingNews.com.  MHProNews provides the facts industry pros must have to navigate reality, not fantasy land.

There is nothing else in MHVille like this dynamic duo.

That’s true in part because third party media interviews real people, and we as trade media let those people speak in an interview setting.

We’ve done the field tests. That works at the local level.  And the local level is what matters for the majority of industry professionals.

There is more to what we do than just interviews.

But the point is this. Those who undermine what we’ve done for years, are arguably undermining the industry’s more robust recovery.  The ones who praised us, did they stop and turn because we threatened some unstated plan to slow walk growth and recovery for independent businesses? 

 

 

Attacking the Industry

Attacking us, is an indirect attack on the interests of the majority of independents in MHVille.

But the heart of the Masthead message today is this. Without going to the root causes of what keeps qualified buyers from purchasing a manufactured home, there will only be slow growth and more of the same

When 8.3 million affordable housing units are needed in the U.S., there is no good reason for manufactured homes not to be selling far better.

MobileHomeShipmentsManufacturedHomeShipmentChartMHIAShipmentsMHIndustryChampionSkylineHUDCodeDailyBusinessNewsMHProNews-666x768

Modular Sellers? Smell the Coffee…

Modular sellers? Wake up. HUD code homes are still outselling MODs.  Both have their place. But so long as mod sellers sell against HUDs, that’s counterproductive too.  Most of the public doesn’t get it.  HUDs and MODs should work together.  By the way, I do think that the modular industry is arguably doing a better job than the HUD Code industry at education. But pros must understand, to the typical prospect, they are all coming out of a factory.

We have a great story, millions of them, actually. The factory built home industry has to grasp that rah rah was needed in 2009-2010, even in 2011.  But as the industry recovered its footing and self-confidence, the next phase became necessary.

One must do reality checks, and act based upon optimistic-realism. One needs a “can do” professional system that works.

Everything else is just a pipe dream. Can do, honest reality, is the ticket. ## (News, analysis and commentary.)

Related Reports:

Media Bias, Ignorance, Manufactured Homes, Agenda Journalism, the Truth About “Fake News”

(Third party images are provided under fair use guidelines.)

To provide a News Tips and/or Commentary, click this link.  Please note if comments are on-or-off the record, thank you.

Marketing, Web, Video, Consulting, Recruiting and Training Resources

 

FactoryBuiltCarsClothingAppliancesElectronicsCellsSmartPhonesHomesItJustFollowsLATonyKovachC2017MHproNewsBy L.A. “Tony” Kovach – Masthead commentary, for MHProNews.com.

Tony is the multiple award-winning managing member of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com.

Office 863-213-4090 |Connect on LinkedIn:
http://www.linkedin.com/in/latonykovach

Sign Up Today!EmailedMHProNewsHeadlineNewsDailyBusinessNews

Click here to sign up in 5 seconds for the manufactured home industry’s leading – and still growing – emailed headline news updates.

L.A. 'Tony' Kovach, MHM - Publisher, Marketing Director and Industry Consultant
http://www.linkedin.com/in/latonykovach
Manufactured Home Marketing Sales Management trade journal
www.MHMarketingSalesManagement.com aka MHMSM.com aka MHProNews.com
tony@mhmsm.com
863-213-4090
 


HUD Secretary Carson, Advocacy Groups, Politicos, & Manufactured Housing Shock

April 7th, 2018 No comments

 HUDSecBenCarsonAdvocayGroupsPoliticosManufacturedHousingIndustryShockMastheadManufacturedHomeIndustryCommentaryMHProNews

Affordable housing, including manufactured homes, is not a partisan issue.

 

At least, it shouldn’t be.

When HUD Secretary Ben Carson, M.D., and Senator Thom Tillis (R-NC) shared the brief exchange below, there was an energy in Carson’s words.

 

 

It’s an energy – “a shock” – that many have experienced over the years when it comes to the surprising realities vs. the unjust, troubled stigmas attached to manufactured homes.

“Trailer House Trauma,” Fresh Look at Manufactured Housing’s Opportunities

 So, why aren’t their more such moments of positive shocks for the manufactured home industry?

 Let’s look at the facts for some clues.

  

MH Cohesion?

Whenever the manufactured housing (MH) industry acted in a rational, and cohesive fashion, it has routinely been able to accomplish in Congress what it needed to do.

That’s true because at its heart, the MH industry has a great, and non-partisan story.

That’s what a dispassionate look at the periodic history of the industry reveals.

For example,

      in 1974, when the HUD Code was first passed into law.

      Or in 2000, when the Manufactured Housing Improvement Act (MHIA) was passed.

      And again in 2008, when the Duty to Serve (DTS) Manufactured Housing was passed as part of the Housing and Economic Recovery Act (HERA).

So when the industry acts cohesively it succeeds. So, why doesn’t it do so more often?

 

Big and Small…

Since before the founding of what today is called the Manufactured Housing Association for Regulatory Reform (MHARR), there’s long been a split between larger and smaller “independent” producers of HUD Code manufactured homes.

MHARR was a breakaway from the body that today is known as the Manufactured Housing Institute (MHI). MHARR was created precisely because of those differing points of view between bigger and smaller producers of federally regulated HUD Code manufactured homes.

  

“Consumer Groups” and Manufactured Housing 

In several states, there are manufactured home consumer groups that emerged some years ago.

While “resident groups” engage on issues such as finance, those residents/manufactured home owner associations tend to focus on issues relating to land lease communities. 

In California, there tends to be fast and hard lines between the MH Industry and resident groups. 

Meanwhile, in places such as Ohio and Florida, those state MH Industry trade associations have at times meet and worked successfully with resident groups on key issues.

  

Non-Profits, Advocacy, and Manufactured Housing

Foundations and nonprofit groups have a history of positive interest in manufactured housing dating back at least some two decades. 

For example, as a Daily Business News yesterday reported, CFED – which rebranded as Prosperity Now – is largely a serious and positive advocate for manufactured homes. 

 

ManufacturedHousingTopTenTruthsCFEDManufacturedHousingIndustryDailyBusinessNewsMHProNews500

For years, CFED/Prosperity Now worked on projects that taken as a whole, promote manufactured homes as a tool for personal wealth building, especially for minorities, and lower income Americans of all ethnic groups.

 

CFED/Prosperity Now research has produced reams of documentation that arguably ought to be done by the Manufactured Housing Institute (MHI).

 ManufacturedHousingTopTenTruthsImHomeInnovationsinManufacturedHomesDailyBusinessNewsMHProNews5-10-600

 

Based upon their overall positive work advocating for manufactured homes, it’s a little baffling for outsiders looking in to see conflict between MHI and Prosperity Now.

But conflicts do exist between MHI and Prosperity Now, on issues that include land lease communities, but also on financing. Prosperity Now has been a loud opponent to the Preserving Access to Manufactured Housing Act. 

 

Like them or not, consider for a moment the perspective of Prosperity Now on these two issues: 

      the issues of “insecurity” for residents in land lease communities,

      and MHI’s position – notably on higher points and fees that benefits primarily the Berkshire Hathaway owned manufactured home lenders.

Absent those two bullets, Prosperity Now should be seen by the vast majority of industry pros as a strong advocate for manufactured housing.

So why hasn’t MHI – the industry’s self-proclaimed “umbrella” and “post-productionassociation – found a way to work directly with Prosperity Now, when Ohio and Florida have found ways to work with their resident groups? Fair question, right?

So for any who believe that it is only MHI and MHARR alone who ‘can’t get along,’ they are mistaken or misinformed.

 

MHI, MHARR and Consumer Groups

This writer, while an MHI member – perhaps naively – attempted for years to get MHI and MHARR to work together.

MHI's New CEO, Dick Jennison

This was one of the photos taken by MHProNews, reflecting routine behind the scenes effort some years ago to get MHI and MHARR to work more closely together. Richard Dick Jennison, MHI President and CEO, left, Mark Weiss, J.D., MHARR President and CEO, right.

The photo taken by MHProNews of Dick Jennison and Mark Weiss, J.D., shaking hands was just one tiny example symbolic of that effort.

MHI in meetings has reportedly told their members that the consumer groups “can not be reasoned with.”  

Something similar has been said in MHI meetings about MHARR. One elected executive committee member stood at an MHI meeting a few years ago, and proclaimed that the “elephant in the room” was MHARR’s then president, Danny Ghorbani.

Yet as noted above, history shows that MHI and MHARR have achieved good things when they pulled together. 

MHARR seems to have a better working relationship with the resident group, NMHOA than MHI does. 

We’ll pose a question that we will leave dangling for now.

Why is it that MHI can get along with MHARR, but only at times? 

 

Yet for most of the the past 20 years (+/-), the two are at odds, because one association arguably favors larger players, while the other fights for the rights of smaller, independent companies.

It’s against that backdrop of more tension than cohesion that the following undisputed facts ought to be considered. MHI hired a man a few years ago, part of who’s de facto job description was to recruit MHARR members into MHI.

Clayton and Cavco have in recent years both purchased companies that are MHARR members.

Is the trajectory of MHI’s and their larger members’ efforts to eliminate MHARR?

 80PercentClaytonChampionSkylineCavcoMastheadBlogManufacturedHousingIndustryConsolidation

 

Dr. Carson, HUD, and Manufactured Housing

It is against that brief history that Secretary Carson must consider the internal political minefield of manufactured housing.

On the one hand, manufactured homes are just as “amazing” as Dr. Carson said.

The regulations and “guidance,” most notably during the Pam Danner era, have been just as “ridiculous” as Secretary Carson told that Senate oversight hearing, as the video above attests.

If MHI wanted to get along with the industry voices that don’t agree with them 100 percent of the time, logically the Arlington based group would only need to do is what it did at times when cohesion existed.  Namely?

Listen, understand, and compromise.

MHI can posture beautifully, but it is their actions – not words alone – that must be the focus.  Their members are buying up, and they are actively recruiting MHARR members.

There are MHARR members, and some in MHI, that believe that Pam Danner came to be HUD’s MH program administrator as part of a specific MHI team member’s efforts.  If so, that means those  “ridiculous” excesses are courtesy of one or more MHI staffer’s efforts.

Since: 

   Danner was removed from the program a few weeks ago

   Lois Starkey was dismissed from HUD,

   and Danner’s overzealous and “ridiculous” regulatory burdens were put on hold by Carson and the Trump Administration,

an opportunity for a new beginning exists. What will happen next?

 

Absent trust and cohesion between

      MHI and MHARR, or between

      MHI and nonprofit Consumer Groups,

several risks exist.

 

Widely Recognized Fact

In finance, or production, in or out of manufactured housing, there is a simple principle at work.

The heavier the regulations, the harder it is for smaller companies to compete against larger ones.  The following third-party research illustrates the point.

NationalAssocManufacturersNAMCostForComplianceMastheadManufacturedHomeIndustryBlogDailyBusinessNewsMHProNews

 

While MHARR was audibly protesting Danner’s work – and sought her removal from the MH program – by contrast, MHI went through various gyrations that did all — save ask for Danner’s removal.  Odd?  Or shadow boxing?

Let’s consider that as consistent with MHI’s apparent and alleged goal of acting in ways that are more burdensome for smaller companies (see Related Reports, linked at the end, below).

This is why CFED’s Doug Ryan accused Berkshire Hathaway (BH) of having monopoly power in manufactured housing over financing. While MHI all too often fails to respond to negative media, in that case their SVP Lesli Gooch leapt to respond and defend Berkshire brands in manufactured housing. By doing so, the Arlington association reflected anew who’s interests there dominate.  Yet the fact remains, that 3 of the 3 largest MH lenders are owned outright by BH – 21st Mortgage Corp and Vanderbilt Mortgage and Finance (VMF), or they have a large stake in their company (Wells Fargo).

DougRyanCFED-MHI2016CongressExpo-ManufacturedHousingIndustryNews-MHProNews

Doug Ryan, CFED/Prosperity Now, credit MHProNews. 

When Democratic Congressional reps target Berkshire Hathaway and MHI – also using the words “near monopoly” – it should make CFPB, more in Congress, leadership at HUD and others in the Trump Administration stop and think.

Nonprofits, President Trump, and political voices across the left-right divide are calling “foul” with regard to giant companies dominating and pushing around smaller ones.  

From as far left as the Nation to as far right as Breitbart, the issue of monopoly has been raised. The Nation specifically cited Warren Buffett’s Berkshire Hathaway and Clayton Homes. 

It’s no secret that Buffett opposed Trump in 2016, by strongly supporting the candidate – Secretary Hillary Clinton – who favored the continued use of heavy regulations.

How many see various movements at work nationally, and in the halls of Washington, D.C.?

 

It’s Not a Vote…

The fact that many inside and outside of manufactured housing have raised similar concerns and issues about monopolistic power ought to be carefully considered by members of Congress and the Trump Administration.

pam-danner-hud-code-manufactured-housing-program-administrator-mhi-2014-summer-meeting-indianapolis-in-alexander-hotel-c2014-mhpronews-com--575x430

Pam Danner, addressing MHI members. Photo credit, MHProNews.

MHI SVP Gooch’s Regulatory Comments Letter to HUD in January were overall good.  But oddly, Gooch failed to mention:

  • who will replace Danner?
  • And what about the harm already done by Danner’s leadership to smaller independents? 
  • Or why did MHI stand mute for years, and promoted Danner on various association event stages?

 

Reenergize?

Secretary Carson and the HUD team have a unique opportunity to reenergize the “amazing” manufactured housing industry in several ways.

The next steps taken at HUD and beyond could tell us who understands the fact that

  • with robust competition,
  • and unleashing the private sector,
  • that HUD could over time do exactly what Senator Tillis and the nonprofits alike suggested.  Save tax dollars by liberating private sector produced manufactured homes. That, argued Tillis, will allow more dollars to be used for others that need a hand up.

That would achieve some of what advocacy groups desire: raising more people out of poverty using modern manufactured homes.

Save tax dollars, give more people a leg up. Learn more in the related research reports, linked below. ## (News, analysis and commentary.) (Third party images are provided under fair use guidelines.) 

Related Reports:

“Move, Open, Live” De Rose Industries & Senator Thom Tillis’ Mobile Home Comments

“Kevin…the Problem of Your Industry…”

MHI Lender Shakes Up DTS and MLO Rule Discussions

 

FactoryBuiltCarsClothingAppliancesElectronicsCellsSmartPhonesHomesItJustFollowsLATonyKovachC2017MHproNewsBy L.A. “Tony” Kovach – Masthead commentary, for MHProNews.com.

Tony is the multiple award-winning managing member of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com.

Office 863-213-4090 |Connect on LinkedIn:
http://www.linkedin.com/in/latonykovach

Sign Up Today!EmailedMHProNewsHeadlineNewsDailyBusinessNews

Click here to sign up in 5 seconds for the manufactured home industry’s leading – and still growing – emailed headline news updates. You’ll see in the first issue or two why big, medium and ‘mom-and-pop’ professionals are reading these headline news items by the thousands. These are typically delivered twice weekly to your in box.

L.A. 'Tony' Kovach, MHM - Publisher, Marketing Director and Industry Consultant
http://www.linkedin.com/in/latonykovach
Manufactured Home Marketing Sales Management trade journal
www.MHMarketingSalesManagement.com aka MHMSM.com aka MHProNews.com
tony@mhmsm.com
863-213-4090
 


Clayton Homes, Manufactured Housing Industry News, Reality Check

April 4th, 2018 No comments

ClaytonHomesManufacturedHomeIndustryNewsRealityCheckMastheadCommentaryMHProNews

Clayton Homes made the news several times in recent days. As a heads up to readers, this mentions legislation, but that isn’t the headline topic. The example that follows exemplifies a reality check that will tee up an “Aha! Moment” for many.

The subjects Clayton Homes has been included in mainstream media reports included such topics as their support for the amendment proposed to S. 2155. That amendment is based upon the Mortgage Loan Originator (MLO) rule proposal found in the Preserving Access to Manufactured Housing Act. That’s fine.

The point? What’s the Reality Check? 

  • Clayton Homes,
  • Berkshire Hathaway,
  • Warren Buffett and his family like son Howard,
  • can get into the news virtually any time they want to do so.

That said, why doesn’t Clayton routinely go after each and every example of mistakes made in the mainstream media about manufactured homes?

2018-04-04_1725ClaytonHomesInManufacturedHousingIndustryNewsMastheadCommentaryDailyBusinessNewsMHProNewsLet’s rephrase for total clarity.

    Berkshire Hathaway owns a press release service.

   Berkshire Hathaway owns numerous media outlets.

   As one of the nation’s largest home builders, Clayton could correct each and every example of mistaken reports in the media.

   Clayton has their own communications and marketing people.

   The Manufactured Housing Institute (MHI) also have public relations (media) professionals.  For years, the MHI executive committee has included 2 of the 4 seats held by Berkshire Hathaway, plus years of Tim Williams, President and CEO of 21st Mortgage as MHI Chairman.  The other 2 of 4 the executive committee seats had ties to Berkshire Hathaway too.

Clayton, MHI and Berkshire Hathaway can comment on – or correct the record on – any misleading, mistaken, bad terminology – – anything! – – associated with the industry.

Will anyone seriously question that claim?   Please, send me a response that explains this topic in some other logical fashion.

Given that premise, that Clayton/MHI could correct any or every flawed media report, how about this question. Why don’t they do so?

For over a year, we’ve done a periodic test. It’s this.  We’ve contacted mainstream media about a problematic news report about manufactured housing that they ran. We ask, has Clayton, MHI or others in the industry contacted you about this? In essentially every case, the answer has been “no.” One example was in Clayton’s home state.  The routine answer was, no, they’ve not reached out at all. (The exception was the Urban Institute, where Clayton and MHI were promised anonymity, per informed sources at UI – see that, linked as a resource below.)

Why does Clayton and MHI allow poor terminology about manufactured homes to continue to go unaddressed? For example, why do they allow the media to call a manufactured home community a “trailer park?” [sic].  Why do they allow any bad information to go unaddressed?

TrailerParkGoogleNews442018ManufacturedHousingIndustryDailyBusinessNewsMHProNews

These are just some ‘trailer park’ [SIC} news stories this week. This happens week after week, year after year. Given that no one I’ve ever met aspired to be ‘trailer trash,’ can you see why this terrible terminology needs to be tackled? Where is Clayton and MHI on this or other negative media related issues?

 

In interview and discussions with home owners and professionals, concerns about being stigmatized by the term “trailer trash” ranks high. It’s a reason millennials have given for not even considering a “mobile homes” – manufactured homes – as an option (see related reports, linked below).

Image and misleading information directly or indirectly costs the industry hundreds of thousands of new home sales per year.  That’s billions in sales a year.

Why doesn’t Clayton and MHI go aggressively after that improper media reporting and terminology issue? Not with more lame advertorials, which industry statistics prove beyond a doubt failed to move the needle for the industry.

DarrenKrolewskiMHVillageDataComp=PostedMastheadBlogMHProNews

Darren Krolewski, Co-President at MHVillage, DataComp.

I asked Darren Krolewski during the Tunica Show why the millions who watch a classy Clayton video, or who visit Clayton’s or MH Village’s websites aren’t buying more homes?  Krolewski said publicly and privately, he doesn’t have a good answer.

We do. A big factor can be summed up with improper information and image. Pretty pictures and videos alone will not fix this. What will? We know this from experience in the field with clients.

Correcting the record, time after time, lifts the industry’s shoppers from interest to buyers.

Now I happen to believe that Warren Buffett, and Kevin Clayton are intelligent people. Tim Williams said it himself. There’s a good case to be made for correcting the record each and every time.

So why don’t they???

 

The 64 Billion Dollar Question

Sir Arthur Conan Doyle, famous for the Sherlock Holmes detective stories, famously observed that when you eliminate the possibilities, whatever remains must be the truth.

Kevin Clayton said over 6 years ago that they were “ready” then to do an image/public relations campaign.

They can get in the news when they want to do so. Why don’t they fix this?

As a state association executive told me today, MHI has a full time media person that could make that routine outreach whenever negative, inaccurate news hits. 

Then why don’t they do so?  Here’s the answer to that, the plausible premise…the Reality Check

  • Warren Buffett said he likes a bargain.
  • Buffett also commands his company presidents to expand their “moat” year after year.
  • By keeping the industry’s image problematic, it obviously keeps new manufactured home sales at a lower level than it would otherwise be
  • That in turn arguably hurts every other business of every size engaged in manufactured housing in America.  That means that other factories, retailers, etc. can be purchased cheaper than they otherwise would be.  
  • It also means that their market share can grow, until the day comes that they take their foot off the brake peddle.

Isn’t this stating the obvious? That’s the reality check. They can get in the news.  They can correct poor reporting, every time, if they wanted to do so.

Clayton and MHI are not responsible for every piece of bad news that hits the media each and every week. But they are 100 percent able – and thus, responsible – for not doing all that they can to fix bad reports when they occur.

Those MHI “image” videos and advertorials are clearly ineffective. The only thing those videos and advertorials do is give them a fig leaf when they are questioned about the topic of image, media engagement, marketing, public relations, and education.

ManufacturedHomeShipmentTrendsPercentageNewHomeStartsSkylineChampionPowerPointMastheadBlogDailyBusinessNewsMHProNews

The facts don’t lie. MHI has admitted at times that the industry is still performing at historically low levels. Why? Isn’t poor public perception, fueled by problematic and flawed media reports part of the problem? Then why doesn’t Clayton and MHI address each and every flawed report? Former MHI Chair Tim Williams admitted that it is a valid approach. Then whey not do it?

Their failure to do so is part of what keeps the industry suppressed. It logically keeps the prices paid for buying the factories and retail centers of others lower than they otherwise would be.

We can call this an allegation that manufactured housing is struggling due to the apparent failure of Clayton, Berkshire Hathaway and MHI to act.

Or we could say the obvious. They have the resources. They know the need. Tim Williams admitted the logic of correcting the record in writing to MHProNews.

The level of acceptance of manufactured housing is directly tied to this issue. Others like financing also have Clayton, Berkshire and MHI finger prints on them as to why they are unresolved (see related reports for details).

Don’t they obviously the MH Industry to remain small, until they’ve consolidated enough that they take their foot off the brake peddle? Isn’t that the reality check for today?  The truth that’s hiding in plain sight? “We Provide, You Decide.” (C) ## 

Related Comments, Quotes and Reports:

“Kevin…the Problem of Your Industry…”

FrankRolfeNegativeArticlesOnIndustryNoCommentbyManufacturedHousingInstituteMHIRVHorizonsMobleHomeUniversityPostedDailyBusinessNewsMHProNews

Since these comments and others, 21st Mortgage has reportedly been paying Rolfe for promotions, and Rolfe has stopped making these kinds of public critiques of MHI, Berkshire Hathaway or Clayton Homes.  http://www.mhpronews.com/blogs/daily-business-news/frank-rolfe-blasts-mhi-for-poor-media-engagement-industry-reactions/

TimWilliamsMediaRelationsManufacturedHousingIndustryDailyBuisnessNewsMHProNews-500x277FollowTheMoneyPayMoreAttentionToWhatPeopleDoThanWhatTheySayMartyLavin6MillionYachtManufacturedHousingIndustryDailyBusinessNews600

 

Warren Buffett Success Secret$, Video Interview Including “The Moat”

Progressive “Nation” Reports on Monopolies Cites Buffett, Clayton, Others – MH Industry Impact?

(Third party images, cites are provided under fair use guidelines.)

ThereAreOnly2WaysToLearnOwnOthersExperiencesLATonyKovachManufacturedHousingIndustryMHProNews-575x235By L. A. “Tony” Kovach,
award-winning consulting, publisher, web, video, recruiting, sales training, business development service provider.

MHLivingNews.com | MHProNews.com | Office 863-213-4090 |

Connect on LinkedIn:
http://www.linkedin.com/in/latonykovach

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L.A. 'Tony' Kovach, MHM - Publisher, Marketing Director and Industry Consultant
http://www.linkedin.com/in/latonykovach
Manufactured Home Marketing Sales Management trade journal
www.MHMarketingSalesManagement.com aka MHMSM.com aka MHProNews.com
tony@mhmsm.com
863-213-4090
 


Manufactured Housing’s Professional Crucifixion

March 30th, 2018 No comments

 JesusCrossCrucifiedManufacturedHousingsProfessionalCrucifixionMastheadDailyBusinessNewsMHProNews

Let’s be crystal clear at the outset.

 

Only One can claim to have been betrayed by a close comrade, arrested, found guilty at three separate rigged trials, beaten, brutally whipped/scourged, mocked, marched off on public streets, crucified, died, and was buried in a borrowed grave for our sins on a Friday that’s paradoxically called Good. 

 

Only One can claim to have undergone all of that, and then rise from the dead. And if experts who’ve long studied the Shroud of Turin and the Sudarium of Oviedo are correct, that One left strong evidence that’s inspired billions of souls throughout the centuries ever since. 

Respectful of our weak yet free will that He died for, Jesus of Nazareth beckons us to look anew, and apply what happened almost 2000 years ago to our own time, and our own circumstances.

Let’s do so, and apply that Way to our often troubled profession.

 PeopleCrossHUDCFPBFHFANIMBYZoningJuda$BlindManufactruredHousingCross

 

Manufactured Housing’s Crucifixion

Take up your cross, and follow Me,” Jesus said. Surely at first blush, those words ranks as the worst sounding invitation of all time.

So why did so many in that era take those striking words literally?  When thousands were likewise sentenced to their own cruel deaths by Roman authorities, and by the politicos and hired thugs of their time?

The fact that hundreds of Hebrew Scriptural references seem to fit Jesus’ life so well, isn’t enough for many among the masses. That’s no slam, it’s simple reality. Perhaps understandably so, because like Peter, even Jesus’ followers routinely deny Him, and turn away…

…only to return more humbly again. 

After all, we are sinners.  It’s the one thing that Saul – who originally persecuted believers, and who became the Paul that preached what he had first disdained – said we have in common.

Through the lens of Good Friday, let’s look at Manufactured Housing’s own crucifixion.

Day by day, our industry is mocked in the media. Manufactured homes are a political football that’s kicked and passed around, fumbled, sold out for thirty pieces of silver, and often frustrated by forces seemingly larger than the 22 million now being served.

No wonder it’s ignored by so many, when it commonly goes under false names like “trailer house,” or dated terms like “mobile home,” even though no new mobile homes have been shipped in the U.S. since the first manufactured homes were built on June 15, 1976.

At Christmas, believers heard and read that Jesus was born in a stable, exiled outside of town. It was the social outcasts of that era – the shepherds – who heard the herald angels sing; not the rich, famous, or powerful.

While some brave souls with millions in net worth own manufactured homes, many more shun them, just because of the unfair rep.

And that’s just fine for scores of locals and so called leaders scattered across our land.  Is it better to have half a million homeless? Is it better to have tens of millions locked in poverty? Why not consider the obvious solution? The one hiding in plain sight?

Better – some wrongly believe – to waste billions a year on programs for rentals that can never solve the growing American housing crisis…

…or so the deeds of the short sighted, ignorant, lazy, greedy or corrupt would have millions think.  Never doubt that forces favoring and profiting from subsidized rental housing resists the obvious solution of manufactured homes.

Last week, HUD Secretary Ben Carson – world renowned for his achievements in medicine – was mocked by some in politics and the media too.

Like the president, vice president, cabinet, administration and the American people they serve, they too are all being sold out at every opportunity.  Sometimes that betrayal is by those who are supposedly in their own party, and among their supporters.

No wonder so many of us won’t take the label of Democrat or Republican. Like Judas Iscariot, the news often gives more attention to the behavior of the wicked, than to the behavior of the those trying to do good.  Spotlight some embarrassing incident, no matter how long ago, or regardless of how irrelevant to the important job at hand.

Secretary Carson, teed up by a question from Senator Thom Tillis (R-NC), talked about how “Amazing” today’s manufactured homes are.

Carson called many of the regulations of manufactured homes “ridiculous.”  You don’t have to be a brain surgeon to see the truth that what you build indoors in a production center will cost you less than the same thing built outdoors on scattered locations. Save time, buy materials in bulk, cut wasted and stolen items down, save labor, and you’ll save money. 

That’s why Secretary Carson could honestly say that manufactured homes often look like and rival conventional housing, and cost less. Per the U.S. Census Bureau, they are about half the cost per square foot as site building.

There’s an important part of the solution to the affordable housing crisis, as Carson himself observed.

So why aren’t manufactured homes embraced?

One might as well ask, why don’t all embrace the cross of Christ? 

 

Manufactured Housing’s Judas

We will link up below the betrayal of manufactured homes by people, who like Judas, sold the industry out so that they could play the corrupt game in the temple that the money changers did in Jesus’ time.

But those corrupt industry folks, who are building “a moat” to enrich the few to the harm to the many, have been killing off competitors by an abuse of economic and political power.  Like Pilate or his brutal soldiers, they have various kinds of blood on their hands.

Some historians claim Pilate converted later in his life. Some say, some of Pilate’s soldiers and executioners did too. If it’s possible then, it is possible now too.

It took the most grueling and unjust death of all time to bring about the conversion of so many souls over the ages. It took Dieced – the killing of the God who become Man – to win victory over Satan. That’s what made this Friday, Good.

We can’t be surprised if we too have a unique cross to take up too.

On the other side of the darkness of Good Friday, comes the bright sunrise of Easter Sunday.

Manufactured housing has been crucified for years.  It was buried in certain ways by some, including those who falsely claim to be the industry’s allies. Pilate and the authorities spread lies to cover their tracks after they killed the Christ, too.

Might our misunderstood and maligned profession – given Secretary Carson’s and the Trump Administration’s leadership, and enough people of good will across the left-right political divide – support as needed our industry’s much needed rebirth?

Will the needs of the many outweigh in time the blindness and greed of the few? 

If enough do the politically incorrect in our time, then Senator Tillis’ and Dr. Carson’s insights will prove to be wise. In turn, millions more will be served, and can lead a better life.

But never forget, it was corrupt men who sold out Jesus. It was those guilty of sinful avarice, the ignorant, the lazy, the paid assassins, that killed the Savior. And the crowd watched. Some stunningly cheered, “Crucify him!” ## (Masthead op-ed, news, analysis, and commentary.)

Related Research:

Affordable Housing Focus Group

Documented Results from Manufactured Housing Industry Leadership

Elvis & Priscilla Presley Honeymooned in this Mobile Home

Urban Institute Ask for Correction in Analysis of their Manufactured Housing Research, “Follow the Facts,” “Follow the Money”

(Third party images, cites are provided under fair use guidelines.)

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Tony took the photo at the right.

ThereAreOnly2WaysToLearnOwnOthersExperiencesLATonyKovachManufacturedHousingIndustryMHProNews-575x235By L. A. “Tony” Kovach,
award-winning consulting, publisher, web, video, recruiting, sales training, business development service provider.

MHLivingNews.com | MHProNews.com | Office 863-213-4090 |

Connect on LinkedIn:
http://www.linkedin.com/in/latonykovach

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L.A. 'Tony' Kovach, MHM - Publisher, Marketing Director and Industry Consultant
http://www.linkedin.com/in/latonykovach
Manufactured Home Marketing Sales Management trade journal
www.MHMarketingSalesManagement.com aka MHMSM.com aka MHProNews.com
tony@mhmsm.com
863-213-4090
 


Jennifer Hall, Doris Hydrick and Dennis Hill – Tunica Show Open Letter

March 24th, 2018 No comments

DennisHillJenniferHallDorisHydrickSCMHISouthCenteralManufacturedHousingInstitute2018TunicaShow

Jennifer Hall, Doris Hydrick and Dennis Hill @ SCMHI,
There’s only two full-scale professional trade shows in the manufactured home profession today. Louisville and your South Central Manufactured Housing Institute (SCMHI) event in Tunica.

At least two of you personally know the sources for our report on Keith Holdbrooks and Clayton Homes decision to scale back in 2017, and to not participate in 2018.

By holding the story linked above until after the event, I’m sure you understand how that protected the show for 2018, and maximized the event’s odds for success.

All three of you are deeply aware of what we’ll politely call the ‘industry’s politics.’  Too few are willing to speak out publicly about what many are discussing privately.

Namely, the various ways that Clayton Homes and Berkshire Hathaway owned companies are exercising their power in – and over? – the manufactured housing industry.

I have two way communications with those in MHI, MHARR and their members, including with 21st (among others), as well as with those who aren’t a member of either national trade group.

As you know, in 2018, the bulk of the homes on display in Tunica were from producing members of the Manufactured Housing Association for Regulatory Reform (MHARR), with fewer exhibitors from among Manufactured Housing Institute (MHI) members.

 

Retirement…

As someone approaches retirement, several things can happen.

Especially if someone perceives that their livelihood is dependent on – or at a minimum, influenced by – a giant operation like Berkshire Hathaway owned brands such as:

  • Clayton Homes,
  • Vanderbilt Mortgage and Finance (VMF),
  • 21st Mortgage Corp (21st),
  • Shaw, and the list goes on,

careful public positions are often taken.

Among the things that can happen for anyone – but perhaps particularly for those approaching retirement – is that fear and self-preservation motivations may set in.  We understand those realities.

There are states, certain executives have told me, where 50 to 70 percent of the floor dues paid to a state association come from Clayton Homes, or result from sales of other HUD Code manufactured homes sold by a Clayton retailer.

GoodBusinessStrongCastleMoatAroundItUntouchableWarrenBuffettQuoteMastheadManufacturedHousingIndustryDailyBusinessNewsMHProNews

 

Industry Trajectory

Since Kevin Clayton did that video interview, their market share went from 25 to some 50 percent of the industry’s new home production, per their own data and statements.  It does no one any good to ignore the obvious. As a show attendee insightfully said to me this week, “the trajectory of the industry” has been toward consolidation.

It’s not revealing our sources to say that at least 2 of you know the sources for our Holdbrooks/Clayton report.

It’s obvious that Clayton et al can exert “pressure,” be they in the Tunica Show, or not.

We’ve been told by industry members that some felt compelled to be in MHI, and some feel compelled to support certain events.  Other forms of pressure are applied to smaller operations.

 

Berkshire Hathaway, MHI and the Resistance

It’s high time for more MH professionals to do whatever they can to combat Berkshire Hathaway’s (BH) and their MHI mouthpiece threat to the independent operations in our industry at all levels.

You 3 don’t have to speak out publicly.

But you can take several private steps to insure the independence of the Tunica show going forward.

Otherwise, as various industry voices told MHProNews, BH is likely to do to the Tunica Show what they are said to have done to the North Carolina event.  Namely, “kill it.”

Let me tell you some of what this year’s Tunica event reinforced for me.  We know from website statistics what readership is like.  But we learned from the numbers of attendees who stepped up and commented, or thanked us, etc. that your crowd includes our audience in significant numbers.

And our audience includes the giants, but also those who overwhelmingly want to stay independent.

 

Thinking Out Loud

Thinking out loud. Don’t you think that giving aspects of the show to cronies of MHI is short sighted? You surely know how this works.  What a crony learns, they report back. When you put a crony on a platform, you may be sending a message to your attendees that is problematic.

You can send the industry, MHI and Warren Buffett’s brands a powerful signal.

You can show your support for those non-BH independents – retailers, communities, producers, and various product/service suppliers – without turning away the Berkshire brands.

But if I were you, I’d let those Berkshire brand companies politely understand that they don’t dictate to the SCMHI show.

 

What’s Coming?

We have reasons to believe that for a variety of market and legal reasons, in the next few years, Berkshire’s grip on manufactured housing could be broken (think about this point in terms of allegations such as class action, antitrust, tortious interference etc.).

Don’t make your final legacy that of a door mat. The French after they were conquered by the Nazis during WW II created a resistance. That resistance movement became critical for them to get back their freedom, just a few years later.

In hindsight, Buffett and Berkshire didn’t save” manufactured housing in 2003; they arguably set about to conquer the industry.

Directly and indirectly, through commission and omission, they and their Arlington-based association tool witnessed the destruction of thousands of independent businesses, including several producers of HUD Code manufactured homes. Many of those now defunct producers used to be built in the region that supplies your show.

ManufacturedHomeShipmentTrendsPercentageNewHomeStartsSkylineChampionPowerPointMastheadBlogDailyBusinessNewsMHProNews

MHI-21stMortgageKevinClaytonClaytonHomesManufacturedHoomeCorporationsPlantsDailyBusinessNewsMHProNews_001

Jen, Doris and Dennis – please be courageous enough to resist BH and MHI any way that you can.

Be loyal enough to those independent industry colleagues you’ve met and known to resist the bullies whose various alleged practices reduced a once-great industry to its currently modest status.

I’ve said before, even as a 25-plus year manufactured housing veteran, it took time to begin to fully appreciate what was happening in the industry.

Looking back, it’s easy to point to ways they targeted us for elimination, years before we spotlighted first MHI, and the BH.

Dennis, you and others like you surely must realize that you’ve been targeted too. Sure, you can retire as planned, or you can go out with a flurry in a grand fashion.

No announcement needs to be made.

No challenge or gauntlet has to be tossed down.

But you owe it to thousands to join the #BHResistance, the #antitrust crowd.

If the SCMHI does so, I predict the 2019 show will be the best event ever.

Think about the trajectory.

When independent retailers die – or are killed off – it is no surprise when the factories that supplied those ‘dealers’ are killed off too. That’s the trend that the MHI chart above also demonstrates. As independent retailers grow fewer in number, so too there are fewer independent producers of HUD Code manufactured homes.

 

Think about the allegations like those noted herein or linked, and the mounting evidence.

Think about charts like those above that reflects how those independents you’ve known for years were wronged by forces they may fully understood at the time.

Resistance is wisdom.

Resistance will bring its own rewards.

We chose not to be slaves of monopolistic forces.

We work and pray daily for the future of our great industry. May manufactured housing experience a rebirth that yields new glory days.

We encourage others to be a part of the kind of resistance that made America a free people. ## (Industry events, commentary, opinion, and analysis.)

PS: Readers should not presume that any of the three addressed, nor the provider of the photo at the top, are a source for information to MHProNews.

Related:

PSS: Manufactured housing isn’t the only industry that ‘consolidation’ is taking place in.  It may or may not work the same in other indusries, as it has in ours.  But across the left-right media and political spectrums, there are a growing number of voices calling to break up the monopolistic tech giants, and are sounding the alarm about giant players like Buffett’s Berkshire.  Ignore the warning signs at your own peril.

Tunica, Nashville Trade Shows and Manufactured Housing Glory Days

Manufactured Housing – “Giants vs. Independents” – Tunica Talk – “You’ve Got to See This”

Tunica Manufactured Housing Show, Photo Report, Day One

4 F’s and True Believers

(Third party images, cites are provided under fair use guidelines.)

ThereAreOnly2WaysToLearnOwnOthersExperiencesLATonyKovachManufacturedHousingIndustryMHProNews-575x235By L. A. “Tony” Kovach,
award-winning consulting, publisher, web, video, recruiting, sales training, business development service provider.

MHLivingNews.com | MHProNews.com | Office 863-213-4090 |

Connect on LinkedIn:
http://www.linkedin.com/in/latonykovach

 

L.A. 'Tony' Kovach, MHM - Publisher, Marketing Director and Industry Consultant
http://www.linkedin.com/in/latonykovach
Manufactured Home Marketing Sales Management trade journal
www.MHMarketingSalesManagement.com aka MHMSM.com aka MHProNews.com
tony@mhmsm.com
863-213-4090
 


4 F’s and True Believers

March 17th, 2018 No comments

4FsandTrueBelieversManufacturedHousingIndustryDailyBusinessNewsMHProNews

Not necessarily in this order of importance, but count us as true believers in:

 

  • Manufactured Homes,
  • America as a Constitutional Republic with free enterprise,
  • and in the four F’s – Faith, Family, Flag, and Fortune (career).

Count me as a pragmatist too. In both trade publishing and in our professional services to the industry, we go where the evidence leads us.

To rephrase, it’s practical to have faith – among other reasons – because its supported by the evidence, and establishes a moral compass outside of one’s immediate self perceived interest. Faith is good.

We could run through the other four Fs in the same manner.  They are each proven, practical, principled, and profitable when properly understood and applied.

So we believe in Manufactured Housing (MH) within that broader context of the Four F’s.

 

The Industry’s Best Homes Ever?

Many believe that the quality, durability, appeal and value of federally regulated HUD Code manufactured homes has never been better.

Without arguing that claim either way, consider this question.  If these are the industry’s best homes ever, then why isn’t Manufactured Housing doing as well in new home shipments and MH sales as say 20, 30 or 40 years ago?

ManufacturedHomeShipmentTrendsPercentageNewHomeStartsSkylineChampionPowerPointMastheadBlogDailyBusinessNewsMHProNews

Don’t try and take an easy answer, like say ‘financing.’ Back in the 1980s – for example – sales were higher, and interest rates were sky high at the start of the decade. The product wasn’t as good then as today’s, ditto the lending, and yet they sold more homes.  Why?

TrailerHouseMobileHomeManufacturedHomeFactoryBuiltHousingEvolution101MHProNews-MHLivingNews

Editorially and based upon fact checks, we disagree with some of the conclusions and claims cited by the Urban Institute’s recent look at the question Manufactured homes could ease the affordable housing crisis. So why are so few being made?”

“Follow the Money” – Controversial Urban Institute Report on Manufactured Housing

 

But we commend the Urban Institute for raising the discussion topic! They have asked the right question.  It is one that everyone in the industry that wants to grow in a sustainable fashion must seek to resolve.

Some are happy, because the industry is back near 100,000 shipments annually. Certainly, that’s good news, given where the industry’s shipment levels where in 2009.

2008to2017HUDCodeManufacturedHomeProductionTotalsMHARRManufacturedHousingAssocReglatoryReformDailyBusinessNewsMHProNews

But that’s not good enough. Not by a long shot.  When the nation needs some 8.3 million housing units a year, manufactured homes ought to be doing several hundred thousand new home sales a year.

LawrenceYunNARShort8.3MillionHousingUnitsRisingRentsHousingPricesCuredOnlyByMoreBuilding

Today’s Masthead won’t editorially suggest the causes or the solutions, per se.

What we will do is ask you to take a good look at the proverbial elephant in the room.

Watch the Warren Buffett video above.

While one may agree or disagree with Mr. Buffett’s politics or business practices, there is no denying his business success.  So those success tips the Berkshire Hathaway chairman describes ought to provide lessons for everyone in the industry, regardless of the size of their enterprise.

Then, with those quotes and tips from Buffett in mind, begin to dive into the resources linked below.

Acknowledging that a challenge exists – and understanding the issues involved – are the first steps in all problem solving.

It is a point that Mr. Buffett and business-man-turned President, Donald J. Trump both happen to agree upon.

Namely, that you should know all that you can about an issue that impacts your career or business.  Sound advice, from different ends of an emerging national debate.

Research, reading, viewing as needed, and robust discussion are how those answers are going to be discovered.

Speaking as true believers in the 4Fs and manufactured housing, it’s crazy not to get to the root issues that keep the industry from achieving its previous new home sales levels.

Given today’s widely acknowledged manufactured home quality, and the huge need for affordable housing, it’s an issue that is begging for answers.  ## (Industry commentary and analysis.)

Related:

Housing, Jobs, Poverty, Opportunity – Kerner Commission Remix, HUD and Manufactured Homes

Two Great Laws Already on the Books NOW,  Can Unlock Billion$ Annually for Manufactured Housing Industry Businesse$, Investor$

Progressive “Nation” Reports on Monopolies Cites Buffett, Clayton, Others – MH Industry Impact?

Kevin Clayton Interview-Warren Buffett’s Berkshire Hathaway, Clayton Homes CEO

It’s “Fair Warning,” not “I Told You So”

(Third party images, cites are provided under fair use guidelines.)

ThereAreOnly2WaysToLearnOwnOthersExperiencesLATonyKovachManufacturedHousingIndustryMHProNews-575x235By L. A. “Tony” Kovach,
award-winning consulting, publisher, web, video, recruiting, sales training, business development service provider.

MHLivingNews.com | MHProNews.com | Office 863-213-4090 |

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L.A. 'Tony' Kovach, MHM - Publisher, Marketing Director and Industry Consultant
http://www.linkedin.com/in/latonykovach
Manufactured Home Marketing Sales Management trade journal
www.MHMarketingSalesManagement.com aka MHMSM.com aka MHProNews.com
tony@mhmsm.com
863-213-4090