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Post Crescent – Factory-Built Home Industry Struggles, and National Concerns

The Appleton, WI Post-Crescent pointed out a state issue with national MH Industry implications. Pittsville Homes shut down operations this summer after 40 years of building modular homes. The steep drop in manufactured and modular home sales in WI was the theme of the Post-Crescent report. The Wisconsin Housing Alliance’s (WHA) Amy Bliss nobly put a better face on it. The WHA’s executive, Ross Kinzler, is among the state execs who candidly point to the fact that roughly 1/2 the states are still losing shipments.

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Antonio Barcenas nailing a section for a modular home in the
Pittsville Homes shop.
(Photo credit: Gannett Wisconsin Media)

It is only the greater gains than declines in the other half of the states that keeps MH shipments overall rising nationally. But that national rise doesn’t mean that some builders, retailers and others may see their doors sadly (avoidably?) close.

There is a high cost to low MH sales volume, and a greater risk found in low volume too.

There is a rumor floating about a plan that seeks to address the low sales volume issue may be circulated at the upcoming MHI meeting; if so, let’s hope it’s a good one.

National Concerns – can they impact MH sales?

Seen the latest polls? It seems ISIS’ execution of two reporters may have backfired. Public opinion shifted rapidly in favor of taking military action against the jihadists. The immigration issue has tipped more too. Fears are rising in DC and among citizens of militant Muslims sneaking across the border to take a 9-11 style action. While home grown U.S. passport-carrying terrorists – trained in Syria – cause shudders at Homeland, is that worse than having who-knows-how-many radicals crossing illegally into Texas, NM, AZ or CA?

Think that doesn’t matter to MH? Imagine terrorist activity disrupting the Eagle Ford Shale, or any market where MH sales are actively taking place.

A security expert wrote to say, isn’t it crazy to think the Saudi’s and Israel can build effective border security, and the U.S. can’t? And isn’t is ironic to talk about the territorial sovereignty of Ukraine being violated, when the U.S. border with Mexico is violated thousands of times daily?

Comments flowing from pros like you keep us on our toes; my thanks to all who send news tips and comments, on or off the record. My thanks to the associations who share their news with us, so we can share it with you. FYI – as most of you know, comments on a variety of subjects by pros like you are found on Industry Voices. It’s read hot so far this month.

Growth! It’s happening in half the states, is there a secret to success?

The above are a few of many possible reality checks, but the fact remains that the manufactured home industry is growing.

Sun’s acquisition of American Land Lease‘s portfolio to the tune of 1.32 billion underscores the confidence that Sam Zell also expressed in the manufactured home communities sector, and thus by implication, in the industry itself. UMH is among those who have taken an aggressive growth posture, doubling their footprint in 5 years. These growth-focused firms are far from alone!

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Billions of dollars are targeting the manufactured housing sector. Don’t be surprised to see a big spike hit industrialized, including modular, construction in the near horizon. We routinely see international readers – with billions in investment dollars – on our MHProNews pages. An advertiser told me about a multi-billion dollar operation that found them, here.

Investors are researching as well as periodically touching base with us with their questions. We have reason to refer those from time to time.

Looking back a decade from now, the billion dollar China-based LandSea deal that was recently announced is likely to be the tip of the iceberg. Let’s not forget that Canadians with deep pockets are among those looking with investment love at our side of the border.

Other international investors are in the hunt too. So we have domestic cash and international money seeking to find its ways into our part of the trillion dollar a year U.S. housing industry.

Lets suggest the secret for success in our industry this way. As in any profession, success flows from proven, duplicatable processes. Individual, corporate and collaborative efforts are all parallel, important factors.

No one person, no one organization has all the secrets. You know some vital things the fellows across town don’t and vice versa. In modern society, information is critical. As noted in my prior post, readers like Warren Buffett are the leaders. Want to grow more talent within the ranks of your operation? One easy tip is to encourage more reading. Not skimming, reading for understanding! Reading for opportunities…

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Let’s close for today with my thanks to Howard Walker, Vice Chairman of ELS, who has thoughtfully shared a note of encouragement marking our rapidly approaching 5th anniversary.

We are getting a steady stream of daily messages – quotable quotes – from state executives, C-Suite level and other corporate leaders along with industry managers, rank and file – many which have an OK for us to quote them. These are names you’ll know, or should!

The closing point is a bold paraphrase of ROC’s tag line, better together. Sure, we may “compete” with others, but we are better off together while remaining friendly competitors. The opportunities are so vast in the U.S. housing business, the real concern is that too many are self-limiting their own potential!

What Joe Kelly calls the “buffett line” found here on MHProNews and our new (1 year old) sister site on Manufactured Home Living News are potent resources that allow you and your team members to grow through useful information. Don’t hoard knowledge, share it with your team and associates. We suggest 15 minutes a day reading on MHProNews, and thousands are doing just that here! We suggest 8 minutes a day on MHLivingNews.com, and thousands are doing that too.

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> Personal Development

> Team Development

> Collaborative Efforts, whenever and where ever possible.

These are among the secrets for more MH success. Inquiring minds want to know! Attending good association events and shows like the upcoming Louisville Show are critical too.

Live networking and business deal making opportunities, combined with information and followed up with action; that’s a ticket to success that works.

So let’s not overlook the state or national challenges which are the staple of association work, lobbying and elections. But lets focus an ever greater amount of energy into understanding, applied knowledge and growth. See you in Phoenix this weekend? I’ll be posting as usual, but from near Detroit, come mid-week. ##

(5th Anniversary image credit: fotosearch)

la-tony-kovach-latonykovach-com-By L. A. “Tony” Kovach.

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