The Masthead

Those who follow this blog know that we have been advocating that Thayer and Danny get their heads together as the respective Presidents of MHI and MHARR with the goal of advancing our Industry’s common issues.  MHARR and MHI have done so before, on topics such as the GSEs and the Duty to Serve or MHIA 2000.  Why not do so again?  While our Industry has collective values in the hundreds of billions of dollars, compared to other industries, experts tell us that manufactured housing is presently ‘too small’ to get the job done on Capitol Hill without the proper level of collaboration.

That’s my view anyway, and judging from readers calls, messages and comments it is one broadly shared.

It has also long been our policy to advocate on behalf of state and national associations.  We belong because we think it is wise to do so.  We attend state association meetings, are scheduled to attend more later this year (including some as a speaker/presenter) and are often at MHI’s national meetings too.

Business professionals in these challenging times are stronger together than divided, and associations are a good place to get involved to get positive changes done.

That said, there are those who see it differently.

We believe in the wisdom of the free press.  There is value to having a robust discussion on topics, so the truth can be revealed.  This was part of the wisdom of the founding fathers in establishing the Bill of Rights which safeguarded not only freedom of speech, but of a free press.

 

 

So it has been our policy here at MHMSM.com (soon to be rebranded MHProNews.com) to share a variety of perspectives on topics of Industry interest.

Marty Lavin has a take that is all his own.   I don’t know of any two people in our Industry who agree on everything, and that would go for Marty and I as well.  That said, I respect Marty and hope you will find his commentary on MHARR and MHI of interest.

If you have a take on the subject of MHI, MHARR or any other industry theme that you want to publish as a feature article or as an Industry Voices Guest Blog post, please feel free to submit them to me with Industry Voices in the subject line at tony@mhmsm.com.

I also want to take a moment to thank those who continue to send us news and other tips!  Join those who share their tips with us by emailing your tips to: iReportMHNewsTips@MHMSM.com

We have a busy week ahead, and plenty of Daily Business News and the new August feature articles for you to catch up on.  MHARR and MHI News are also hear for you 24.7.365.

One of my favorite Marty Lavin quotes are as follows:

“Forget what people are saying, instead, watch what is happening.”

– Marty Lavin

Good advice.

We are your largest and most popular one stop shop for Industry News, Tips and Views you can use.

We provide, you decide.

May the Industry discussion continue!  May we tackle problems with a solution orientation and move towards Industry growth again!# #

 

 

 

 

 

When you get a lot of e-comments and calls on an article, it makes a writer think he has hit an important theme.  There is no easy way to capture all of the comments on our last column:

Can MHI and MHARR Join Hands on Dodd-Frank for Manufactured Housing’s Future?

But let’s provide a representative sampling of what Industry Leaders and Readers are saying about the article linked above.

Most of these emailed messages start with my name, but I will use that only in the first one to save space and time.  We are leaving most typos in, unless there is a character ‘gremlin’ which needs to be modified to reflect the writer’s intended word.  I’ve edit out obvious tip-offs or give-aways of the writer’s identity as well.

Let’s begin:

Tony

I applaud you for taking this public stand. You’re saying what just about everyone in the MHBusiness is thinking, and saying privately these days. And as far as that goes, Good for You!

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Congratulations on what may be your best work yet! You have accurately
summarized the chasms that exist between our industry associations, MHI & MHARR.

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…a ‘next step’ in this challenge, i.e. Good News! MHI & MHARR have worked together ‘in our behalf’ in the past, so precedent is present! “Hey you two, are you listening? We expect you to do so again - NOW!”

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Back to MHI/MHARR: True, the two entities have come together for initiatives in the past (MH Improvement Act of 2000 for instance), but while their intentions are purportedly the same, they have gone about furthering those intentions in drastically different ways.

True, you can catch more flies with honey, but there should be a point of ‘enough is enough.’ I don¹t agree with Danny¹s broadside blasting style in every instance, but in his defense, he¹s been watching HUD running pretty much how they want to, disregarding the law (MHIA 2000), while the ‘get along’ guys seemingly just wants no one to get their feelings hurt.

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I will begin by stating that I am a strong supporter of MHI and I am convinced that for the good of the industry and our deserving customers, this smoldering feud must STOP!  For the past decade, I have seen opportunities for industry unity vanish as a result of the egotistic attitude some of its leaders.

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Manufacturers, retailers, community owners, financial institutions and our customers are all in the same boat. Will we be paddling together toward a better future or separately bailing our individual boats to keep them from sinking?

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It is clear to me, that since my initial involvement with m/h in…that legislative advocacy between the manufacturing and sales of new homes and the needs of existing communities are as different as ever.  The creation of two National legislative advocacy organizations to support these two divergent interests could result in the most efficient application of resources for each separate industry interests.  Problem is: how to provide financing for both. With most of the financial responsibility currently being provided by manufacturers and related suppliers, will communities and their related support services be able to provide for a separate organization?

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It is unfortunate that MHARR can’t cooperate with MHI for the betterment of the industry.  In my experience, though, cooperation in simply not in MHARR’s vocabulary.

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Years ago, I watched a movie entitled Young Frankenstein. Gene Wilder played a young neurosurgeon Dr. Victor von Frankenstein.  He re-animates a lifeless body, but mistakenly transplanted an abnormal brain into it.  The huge, powerful ‘monster’ becomes a danger.  So Dr. Frankenstein does a ‘transfusion’ between the two of them to calm the monster.  Sometimes I think we need a ‘transfusion’ between Danny and Thayer, to balance each one for the betterment of our Industry.

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…the writing deserved the recognition…

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What we could accomplish by combining revenues and resources would probably amaze all of us.

Has this ever been pursued. ??

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This is a sampling of the emailed comments on this topic.  There have been posted comments, and statements posted on LinkedIn relative to this subject as well.  Phone calls have been overwhelmingly supportive of the article:

Can MHI and MHARR Join Hands on Dodd-Frank for Manufactured Housing’s Future?

So can we encourage MHARR and MHI leaders to cooperate together for the betterment of all on Dodd-Frank and other key Industry issues?

Can each association support the other in key areas?

Can there be peace and cooperation between these Industry voices?

What say you?  Your posted or emailed comments are encouraged and appreicated. # #

Editor’s Note: Besides our ‘always new’ Daily Business News , we have three new Industry Voices Guest Blog posts on these topics; each worthy of your attention and comments!

• Saving Chattel Lending by Marty Lavin
• Matthew Silver’s Interview with SC Association Executive Director Mark Dillard
• Thayer Long on IBISWorld

It would be nice if we could share a manufactured housing news headline at MHMSM.com that read like this:

MHI and MHARR Cooperate on Dodd-Frank with their Capitol Hill Resources

We can’t give you that headline, which is the motivation for this column today.  But we do need a truce between the Manufactured Housing Institute (MHI) and Manufactured Housing Association for Regulatory Reform (MHARR) on key issues, with Dodd-Frank being one of them.

Let me be clear from the outset: both national associations would state privately and publicly, that they want to see a modification of Dodd-Frank.  But one is working at it, and another is busy with other matters.

Let me also be clear, this is not a call for unity between the two organizations.  Their leaders would say each exists for its own reasons and constituencies.

So can their be cooperation between the two national associations?  Should there be?

Industry insiders tell us that implementation of Dodd-Frank without amendments will cost the HUD Code manufactured housing Industry another 20,000 annual new home shipments.  How many more factories would close as a result of the the loss of 20,000 shipments?

Beyond the loss of 20,000 new HUD Code manufactured home shipments – and 20,000 manufacturing jobs with them – potentially tens of thousands of pre-owned home sales would also be lost.  Why?  Because an unamended Dodd-Frank will make lending on them unprofitable.

So how many more retailers, communities, finance, insurance and other suppliers will that projected sales drop impact?  How many millions of manufactured home owners will suffer a loss of value as a result of Dodd-Frank?

This is the backdrop to the issue: can MHI and MHARR bridge the gap on select issues and work together for the good of millions of manufactured home owners and the Industry at large?

We will look at some recent history to understand the challenges, and also to encourage the pursuit of such an effort.

I. Reforming Dodd-Frank: a challenge in DC today

It is no secret that the Manufactured Housing Institute (MHI) is fighting an up Capitol Hill battle to get a modification for Dodd-Frank accomplished before rule making goes into effect.  With the House held by Republicans, and the Senate and White House held by Democrats, getting anything done on a bi-partisan basis this year is not easy.  All the more reason for both MHARR and MHI to work together.

The Consumer Finance Protection Bureau (CFPB) will officially open on July 21st, 2011.  But no one knows what date the rules under Dodd-Frank that will impact our industry will take effect.  Some hope that process will take 18-30 months.  But what if rule making gets published and implemented more rapidly?  Can we afford to see a new drop in shipment and sales levels?

Clearly not.  That is why the Industry’s best possible effort needs to begin asap and be maintained until the needed changes become a reality.

This is why a truce between MHI and MHARR could be very useful in Dodd-Frank, or other issue, such as the MHCC.  Each national association has much to protect and gain from such an effort.

Such an effort could save jobs, save businesses and protect manufactured home owners in the process from the unintended consequences of Dodd-Frank.

II. Recent history on MHI and MHARR relations.  Facts and Challenges

The following outline are the perceptions of a number of industry voices who shared their insights as noted below.   They are part of the ‘news and tips’ we get that can keep our readers better informed.  These insights come from industry members, government officials, associations and others who are in the know.

Regrettably such talk is rarely shared in public forums.  Let’s give voice to those perceptions in the bullet points below.  That will be followed by an analysis.

Some of these items have not been published before, some are better known.  Let’s begin with no particular order of importance:

MHARR on MHI:

• Danny Ghorbani and MHARR have not made it a secret that their “production” and “post-production” ideal for national associations is a way to split MHI up.  If that occurred, that would effectively kill the MHI that we know today.

• Under Danny’s concept, MH Communities and Retailers (presumably finance, insurance, etc.) would have their own new ‘post-production’ national association.  Then manufacturers and component suppliers would have their ‘production’ national association.

• MHARR often blasts MHI for this or that perceived failure via their news releases and opinion columns.  That goes back to his arguments for the break up of MHI into post-production and other producers then could join MHI.

• MHARR leaders sincerely believe that without their efforts in the 80s and since, HUD Code housing would have vanished long ago.

MHI members on MHI and MHARR:

• There are those who support Danny’s idea of a remodeling of MHI – at least in theory – among MHI’s own members.  Doug Gorman has publicly said (paraphrasing to save time) ‘retailers would be better off with their own association, but we have MHI and we have to make the best of it.’ If Doug were any other retailer, maybe that statement would not be such a big deal.  But he is the most award winning retailer that MHI has as a member.

• Doug Gorman is also a voice that says, ‘The Industry needs Danny Ghorbani.’  Doug has served for a long time on the Manufactured Housing Consensus Committee (MHCC).  So Doug is very knowledgeable about issues from manufacturing, regulatory and retail perspectives.  He is a voice that public officials respect, who generously donates time for state and national efforts.  Doug has the respect of many of his Industry peers.

• George Allen has essentially been a voice in the MHI ranks that questions MHARR, or of late, has proposed in writing a means of doing MHARR in via MHI manufacturers buying out MHARR manufacturers.

• Some state execs or MHCC members see periodic value to Danny Ghorbani’s insights on production and HUD Code related issues.  But not many will publicly agree with Danny’s method or approach of dealing with HUD or MHI.

• State execs are not always comfortable with the level of progress made by MHI on key issues, be it Dodd-Frank, SAFE, etc.  Some are down-right worried for the Industry’s future.  But they at times feel similarly to Doug Gorman’s comments, they see MHI as the only game in town for them.

Rumblings about MHARR from MHI and MHARR:

• Even among MHARR members, there are those who privately have their questions and concerns about Danny Ghorbani’s often strongly worded emailed messages.

• Some appreciate the more factual and toned down approach that occasionally comes from MHARR, even if the realities or thoughts behind the messages are unchanged.

• Thayer Long has generally been milder in his approach towards MHARR than MHARR towards MHI.  But Thayer has at times responded.  Such was the case recently, when Thayer  sounded off exclusively with MHMSM.com after the IBISWorld report, or on the HUD/fire-sprinkler standards topic, etc.

• At MHI’s annual meeting last year, one leader publicly described Danny Ghorbani as the ‘elephant in the room’ who has to be dealt with.

Recent efforts for unity on key issues in DC:

• Partially as a response to such division at the national level, the Arkansas Manufactured Housing Association’s Executive Director, J. D. Harper, attempted last year an initiative that hoped to bring a new lobbying voice to Washington DC, to be given birth from the state associations level.  The concept was designed to bridge the gap on issues like SAFE and Dodd-Frank.

• There was a private meeting last summer between 3 CEOs for MHARR manufacturers, and 3 CEOs of MHI manufacturers. There was early hope that this would result in some sort of mutual efforts on topics such as Dodd-Frank.  But for a variety of reasons, those secret talks fell apart.

• It should be noted that the goal of those secret MHI-MHARR talks was not ‘unity’ per se, but rather an attempt to bridge the gap on key issues of mutual concern, such as Dodd-Frank.

Elected officials and Regulators:

• It should also be noted that regulatory personalities such as Bill Matchneer at HUD (who along with others who are with the HUD Code program will soon be at CFPB), have stated to MHMSM.com in writing that working with MHI is easier than working with MHARR.

• Off the record comments from HUD officials and congressional elected officials often pose the concern: who do we listen to between these two national organizations?  Are these groups as professional in their lobbying approach as they could be?

• Imagine for a few moments being a HUD official; or a congressmen or senator whose staff says MHARR wants one thing, MHI another.  How can that help our Industry at such challenging times as these?

A new association?

• There was a brief effort last year that MHMSM.com reported on that was for a time supported by George Allen and others.  This was the so-called MHIdea promoted by retailer Dick Moore and his associate Bob Crawford.  That initiative rapidly vanished, although they maintain a website and a Linkedin page.

• One of the concerns among state associations regarding JD Harper’s concept was the fear that what would arise would be a ‘third’ national voice.  JD himself stated such was NOT his goal for the regulatory lobbying effort.  As a footnote, that effort begun by JD was co-opted by MHI who hired the lobbyist tasked with working on regulatory issues (such as the SAFE Act or Dodd-Frank).

Who has done what?  What are the styles and results?

• General comments about the two styles among industry pros runs like this: Thayer is often seen as having more of a consensus building style, but some wonder if he gives too much in the process.  Thayer and MHI put up their ‘score card’ annually.  He says other associations should provide an annual ‘score card’ on what was accomplished every year too.

• Danny Ghorbani’s style is seen as more of a letter of the law as I see it and you (gov’t bureaucrats) better jump in line. Needless to say, this does not sit well with regulators, but it does play better with others.  Danny and his associates would say, they lay out the facts and want those facts and the law respected.   Why compromise on the law as it was written and intended?

• MHARR blames MHI for failure to advance in DC.

• MHI via Thayer Long has publicly questioned what Danny has actually accomplished in recent years, beyond finger pointing and blaming MHI.

• There is no solid unity on issues such as the MHCC and HUD’s moves to ‘neuter’ the MHCC.  Views on issues such as requirements for fire sprinklers vary as well.

• It should be noted that both groups believe in the need to protect chattel financing. Danny states he does support MHI’s efforts on Dodd-Frank.

• State execs as a rule line up behind MHI, which is understandable, as they have a real voice in that association.

• There has not been so much as a lunch between Danny and Thayer for some time, although one of those two parties would likely agree to do lunch in a minute.

• George Allen in his published musings on the topic tags MHARR for lack of engagement on community or other ‘post-production’ related issues.  Danny’s reply to that is that they get not one penny from communities or retailers, etc.  Nor does MHARR want it, Danny says.  Danny says they only reason they have engaged in the post-production issue of finance at all is that  MHARR thinks it has been vitally necessary to the survival of the industry.

• There are numerous voices that sees the value to MHI, to meetings like the MHI Congress, legislative sessions, etc. that are there to inform, education, inspire and hopefully encourage grass roots support.

• Certainly, MHI members vote with their feet and wallets, just as MHARR members do.

The above is not comprehensive.

For example, in the above, I’ve not gotten into conspiracy theories that George Allen has periodically raised.  I’m just outlining facts known to me personally or from others in various in Industry circles.

Some observations:

III. Brief Analysis:

1. Neither MHI nor MHARR wants to be done in. Talk of destroying the other association by whatever means can only cause each side to be less willing to work with the other.

2. Free entertainment? While this is lack of cooperation between MHI and MHARR is ‘entertaining’ in a fashion, this arguably does neither group nor their members any good. This entertainment isn’t free at all, it is arguably costly to us all.

3. A new national association. The idea of trying to create a new national association in these challenged times, or re-align the existing ones, is problematic at best.  Time and money are key challenges, even if there were widespread support for the concept.  I’m reminded that there are individuals in this Industry who could personally fund such a new organization with their pocket change.  However, starting a new national association is not the same as such a hypothetical group being instantly effective in lobbying efforts.

4. Finger pointing does no one any good.   Who did what to whom first, or who failed on what, when and how is only useful to learn from.  Finger pointing doesn’t change the reality of where our Industry stands today.

5. I recall George Allen’s idea last year of having an MHI and MHARR ‘debate’ at his International Networking Round Table.  That debate did not take place.  It is an interesting idea. It could bring quite a crowd to say a webinar, for people to hear the issues ‘debated’ between the two organizations.  But I’m not sure it would help bring the resolution that people would want or we as an Industry certainly need.

What baffles me are some logical ways that each side could see its way clear to helping the other.  These are two no-brainers:

A. Where is the effective difference between MHARR working on Capitol Hill for reforms that would allow the GSEs or FHA to make more chattel loans, and for MHARR working with MHI on reforming Dodd-Frank?  Aren’t both finance related?  Wouldn’t protecting current financing and sales be as important have the same logic as being involved in finance?

B. Doesn’t MHI’s leadership see how it could support MHARR on matters that impact their constituents?  Can’t MHARR provide MHI with a laundry list of its hottest topics? Can’t MHI say, MHARR please help us on the SAFE Act and Dodd-Frank, etc.?

Key MHARR and MHI Leaders should meet.

What should take place is that the chairmen and key members of MHARR and MHI would meet in private again and make peace.  Let them carve out the areas they can agree to support each others on.  Then, let them agree on which topics not to step on each other’s toes.

Then let that MHARR-MHI committee leaders give the marching orders to their respective association executives.

Needless to say, there has to be give and take for such a ‘coming together’ on key topics to occur.

Can it be done?  Absolutely.  This is no day dream, because it HAS happened before!

This type of agreement was achieved during the run up to the passage of the Manufactured Housing Improvement Act of 2000.  The need is no less great today.  Indeed arguably, the need is greater.

What is certain is that just as no person is perfect, the same is true for an organization or association.  If one said claims perfection, they lose credibility instantly.

Let’s close with the same point we opened with.

It would be nice if we could share a manufactured housing news headline with you here at MHMSM.com that read like this:

MHI and MHARR Cooperate on Dodd-Frank with their Capitol Hill Resources.

Let me encourage you to contact the independent MHARR manufacturers you work with or MHARR’s Chairman, John Bostick of Sunshine Homes.

Then let me encourage you to contact Joe Stegmayer at Cavco, who is MHI’s Chairman.  Kevin Clayton at Clayton Homes and Woody Bell from Palm Harbor where also part of the meeting last summer with the 3 MHARR CEOs.

Certainly, you can address Danny Ghorbani or Thayer Long directly as well in support of the truce and collaboration idea.

If our industry can pull together a truce on the national level on enough unity on key topics, the odds of averting a further melt-down over Dodd-Frank’s regulations goes up.  Other issues of importance, could also be more successfully addressed.

All that can start with a simple email or phone call to your association and/or your representatives to encourage a much needed ‘detente’ between the two national trade organizations.

Your posted comments, calls or emails on this or other topics are welcome.  Thank you for all of those who provided tips and insights that made this Masthead blog post possible. # #

The Business Insider headline “Don’t Show this to Warren Buffett…” was just one of many private or public messages that came into my email in the days following the IBISWorld Report that forecast the manufactured housing dealer as a ‘dying industry.’  Many calls came in on this and related topics in recent days as well.  Is this report and our latest drop in shipments on manufactured housing industry professionals’ minds?

You bet.

Last week, Thayer Long sent a message to manufactured housing state execs and the Manufactured Housing Institute (MHI) Board of Directors with a copy of Paul Bradley’s insightful IBIS Report analysis.

Retailer Doug Gorman and manufacturer Otis Orsburn have also sounded off on this manufactured home news topic on our Industry Voices Guest Blog.

Off our site, George Allen and commentary on LinkedIn is ongoing regarding the causes of the Industry’s downturn and what manufactured housing Industry professionals plan to do about it.

We will bring you a story soon with exclusive quotes from Thayer Long at MHI and Danny Ghorbani from MHARR (Manufactured Housing Association for Regulatory Reform) on this topic of IBIS and the latest drops in Industry sales levels.

For the moment, let me echo a statement made by one leader who said that we believe in the future of our Industry.  MHMSM.com believes in the future of this industry, too!

We also believe ignoring the facts can be done only at our own peril.

It is at least as important to work for pro-growth efforts to

promote our Industry as it is to

defend the Industry from legislative issues such as the

SAFE Act or Dodd-Frank.

In fact, arguably, the pro-growth efforts can help fund efforts such as getting needed change with respect to SAFE or Dodd-Frank.  Our great nation repealed slavery and prohibition; surely we can pull together enough to get a regulatory climate that fosters business and job growth while protecting consumers.

The IBISWorld report puts the media’s role regarding our Industry on center stage.  IBISWorld has successfully used the media to cast more doubt over manufactured housing.  This poses two questions:

1.    How can we get more favorable media coverage for manufactured housing?

2.    How can we get the media to use proper terminology that doesn’t sound like a put down every time they report on our Industry?

These will be some of the topics covered in the Engaging the Media panel discussion in Las Vegas on April 28th.   For those going to MHI’s Congress in Vegas, we hope you will plan to attend this crucial topic of “Engaging the Media” – because it impacts every business in our Industry multiple times a year.  We may also present that topic in Tulsa the following day.

For you and your area, the lessons from Engaging the Media could be a nascent precursor to a national image and educational effort for the manufactured housing industry.  Private companies and associations can work together to engage the media to successfully advance the Industry’s image and thus manufactured home sales results.

Thayer Long is correct in saying that attendance and factory orders from shows at Louisville, Tunica and sign-ups for the Congress, PMHA’s HOMExpo 2011 in York PA and the 2011 Great Southwest Home Show in Tulsa OK are all positive signs.

Information I’ve seen indicates that the 2011 Great Southwest Home Show registration is running well ahead of last year.  Attendance was good at Louisville and Tunica, and is expected to be good for HOMExpo 2011 in York PA as well.

After a long night, any sign of dawn’s first light is anxiously awaited.  That is human nature.  We want to see positive signs where we can find them.

But unlike dawn or the seasons, business results can be influenced!

Sales results can be measured – but also increased – through sound analysis, planning and follow through.  Shows and educational efforts are tools to boost business that we believe in.

What is critical is that we not get bogged down in politics or bickering that fails to advance our personal, professional, business or broader Industry advancement and growth.

Every manager or executive is held accountable for RESULTS.  Should we not hold ourselves and others accountable as well for getting results?

George Allen and Doug Gorman come from different parts of the MH Industry world.  Each has won their share of awards, and each has professionals who cheer for their positive efforts.  Entirely unbeknownst to each other, Doug and George decided this weekend to include in their writings musing about ‘conspiracy theories’ regarding the Industry’s downturn.  Each has a different take, George on his Community-Investor Blog and Doug on our Industry Voices Guest Blog.

Quoting in part from George’s Blog post earlier today:

“It’s the well known but embarrassing phenomenon of self – immolation (Webster: as in ‘killing oneself – or industry – as a sacrificial victim’). In the case of manufactured housing, this self – defeating state of affairs is characterized by ‘resistance to change’ (e.g. Like automobile plants, we count our ‘shipments’, not homes ‘sold’, & cling to vestigial trade lingo like it’s Biblical writ); greed (e.g. Think, ‘Bigger boxes = bigger bucks!’); and, frequent lack of product (installation) responsibility (warranty) once the house leaves the factory (e.g. Remember ‘DAR’? It’s the industry’s continuing mantra, in some circles, as in ‘Drop (that house) And Run!’).

“And there’s more. How ‘bout cyclic short term abuses of chattel and realty finance sources, followed by reaping self – sacrificial long term consequences of going without (e.g. Only 50,000+/- new HUD Code homes ‘shipped’ during years 2008, 2009 & 2010)?

“Of course, there’s also the perennial, not – so – private, lobbying – defeating, internecine squabbling between our national advocacy trade bodies inside the Washington, DC beltway. Will it ever end?

“Plus, landlease (nee manufactured home) communities are not without blame! Too many still deserve to be viewed as nothing more than ‘trailer parks’, awash with negative societal mores and perpetuating a very poor public image of an otherwise desirable, affordable lifestyle.  And in the same breath, do we dare mention the nefarious (in some eyes) or business risk – mitigating (in other eyes) practice of ‘churning’ our (property owner) self – financed homeowner/rental homesite lessees? And the list goes on….

“Is there a solution? I believe there is. But we need a charismatic, respected, well known, successful businessman or woman leader, to step forth and publicly announce, ‘The HUD Code manufactured housing industry is at an impasse! And if we’re to move forward together, and profitably, during the next decade, we’ve simply got to Get Our Act Together, the sooner the better!’”

(Editor’s Note: The wording quoted above is copied verbatim from GFA’s blog,  but paragraph spacing and bold emphasis are ours).

Let’s sum up.

Here are our links to the IBIS related stories and blog posts on our site:

• Paul Bradley
• Doug Gorman
• Otis Orsburn
• Daily Industry Business News
• our download on the IBIS report

Industries are made up of thousands of businesses and professionals.  The presence of big players in our Industry is a good reason for us to continue to believe in our Industry.  The presence of far more ‘mom and pop’ independents who are hanging in and working hard to effect their own turn around are good reasons to believe that we can individually respond to local trends and opportunities. But we do have to be willing to change and adapt to the times.  Failure to change and adapt in positive ways will mean that more retailers, communities, manufacturers and others fall by the wayside.

Business Insider’s “Don’t Show this to Warren Buffett…”? Come on.  IBISWorld Report? Come on.  They may get some attention and headlines.  But do not let those self-serving naysayers get you down.

If we don’t get stuck in a rut, we can move ahead.  Ideas like Randy Rowe’s 5 Point Program for the Industry’s turn around are important concepts for us to consider.

Let’s sum up:

• Educational efforts (inside and outside) our industry are of value.  Association and other events and shows can be a very useful part of this process.
• MHAO‘s and PMHA‘s promotional efforts such as their public days in their respective home shows are useful tools to show the public at large that today’s manufactured homes are a quality, safe, durable energy saving home value, with the ability to attract both ‘entry level’ and ‘upscale’ home customers.
• There is a need to boost business and our public perception.  Some of this can come through Engaging the Media.  if you are planning to be in Las Vegas for MHI’s Congress,  please plan on attending this workshop and panel discussion.
• There should be accountability for results.

The bottom line?

We need to be willing to change where and as needed, or risk becoming the dinosaurs that the IBISWorld Report predicts we will become. Let’s make the IBISWorld Report and dropping industry shipment numbers the wake up call to change what and as needed. # #

Thanksgiving. Christmas. New Year’s. These are times that we gather with friends, family and associates. We celebrate, party and feast! We eat (and sometimes drink ;-) ) too much! To those distant, we send warm greetings by phone, mail, text, via Facebook, Twitter or email. FedEx and UPS certainly celebrate all the packages that reflect the love and caring that this season brings. These are for most of us bright, grand days during the seasonal darkness where we Americans live.

This is also a time for reflection.

Many companies and individuals use this time to review what has transpired in the past year. To see where they have been and what direction they have moved. To ponder and advance what has been right, and also to learn what needs to be set right that was wrong. That is an important process. Just as a star once guided the wise during the dark of night, so too there are lights that shine for us during these darker days. IF we are willing to focus on the light of wisdom and follow, then we too may find what we seek…

As part of my personal reflection, let me pause and thank you for being here. It is a privilege to serve.

It is also quite humbling to see who we have shared these pages with at MHMarketingSalesManagement.com (MHMSM.com) in this past year. We have an amazingly dedicated team of fine feature writers! They have shared with you and tens of thousands of others their time and insights on our pages and in our podcasts. The best among us understand the fact that sharing valuable time, insights and experience is a wonderful form of giving back! Many of the best are found right here. My thanks to each of you.

Warm thanks also to those who have written for the Industry Voices Guest Blog and participated in A Cup of Coffee (or Cocoa)… interviews or Industry In Focus interviews with Eric Miller.

We have a great team on the staff of MHMSM.com as well. Unless you work behind the scenes, it is not easy to imagine how much effort it takes to pull off the business daily news and information, monthly feature articles, and weekly blogs and emailed newsletters. Plus the daily business news podcasts, too! My hats off to the fine folks who make MHMSM.com possible through their daily efforts.

Let me share those names with you below.

Joe Adams

George F. Allen

Michael F. B. Barnabas

Rachel Biermann

Beth Monicatti Blank

Jason Boehlert

Chad Carr

Tim Connor

Maria Cucchiara

Congressman Joe Donnelly

Mike DuPure

Dick Ernst

Marc Faulkner

Suzanne Felber

Sue Frost

Danny Ghorbani

Doug Gorman

Nadeen Green

Jamie Hammons

J. D. Harper

Edward ‘Eddie’ Hicks

Dennis Hill

Mike Hourigan

Chrissy Jackson

Congressman Walter Jones

Joe Kelly

Ross Kinzler

Susan Knowles

Steven Lefler

Thayer Long

Bill Matchneer

William P. McCarty

Greg McClanahan

Eric Miller

Mike Moore

Shawn Mullins

Greg O’Berry

George Porter

Dan Rinzema

Kenneth Rishel

Tim Saville

Ray Schmitt

Dave Shanklin

Joanne Stevens

Kent Stichter

Bob Stovall

Congressman Bart Stupak

R. W. Thiemann

John Underwood

Heather Vela

Richard Weinert

Don Westphal

Stephen Wheeler and Marilyn Kuntemeyer

Zig Ziglar

Privacy policies – and space limitations! – prevents us from sharing the names of all those who are our readers. From associations, to government officials, to the “Mom and Pop” firms that are the backbone of this great nation, to the mid, large and giant companies of our Industry – you will find our readers and listeners.

We have all learned from others, and it is by passing along lessons learned and sound insights that society – or an Industry! – can advance. Unless we are willing to adapt and grow, change will pass us by. Thus the importance of a place like MHMSM.com – where minds come together, to share, learn, adapt and grow! Corporate and association meetings are important. So is the meeting place of the mind online or via our podcasts.

As we ponder the deeper meaning of these and other seasonal holidays, let us allow the spirit of giving and receiving well to inspire us to be our best.

You or others readers and listeners like you have shared thoughts in person, by phone or electronically. My sincere thanks for each thought shared. Many of our tips come from you. Some want to be kept anonymous, and that is honored here. In the ideal, we have an exchange, a deeper encounter than may at first be obvious. It is naturally our desire to listen as well as share back with you, and thus the reason we are all here.

No one in their right mind denies the challenges we face. But neither should we let those challenges daunt or deter us! Americans have overcome much greater challenges than we face, so we can do what needs to be done today and tomorrow.

Let us learn and apply those insights we gather from one another to improve and grow personally and corporately, and thus as an Industry.

Let us make 2011 a year for true advancement.

Let us do what it takes to make our better days ahead a reality.

There is a star that shines in the darkness of night. This is a metaphor that can inspire us if we allow it to do so. We have star power on these pages, and we have star power in you and some 35,000 others like you in various parts of this Industry. Together, we can advance and grow.

My thanks to all who visit, read, listen, write, podcast and meet in this modern fashion on our pages. My sincere thanks to you. We hope our work is our gift, symbolized by our e-card above.

Merry Christmas! Let’s catch up with each other again this weekend and we hope to meet with you again next week. # #

Do you want to grow your business by 400% to 1600%? Want the simple tool to help make this happen? Well, then, please read on!

The Summer of 2010 has been a busy one for many of us.  We may not be selling all the factory built homes we desire, but we’ve made some marginal improvements during a time that housing in general continues to struggle.   We’ve seen a dizzying array of issues face our Industry, from finance, to regulatory and more.

Let’s be candid, we could use some help on Capitol Hill!

During the MHI Summer Meeting, Thayer Long said that over 80 Industry Members made personal visits to Congress.  A lobbyist – as well as Congressional representatives and their staffs – have expressed to me how important it is for your Senator or Congressman to hear from you, personally.  Lobbying is needed in this day and age.  But no one does it like YOU can do it.  A letter, fax or email from you to your Congressman or Senators can have an important impact.

MHARR and MHI have both advocated ‘engagement’ with Congress during this critical period of time for our Industry.

With the above in mind, I put together the message that follows. This was done with some very helpful polishing assistance from our Associate Editor Catherine Frenzel, whom I hereby publicly thank and acknowledge for her many contributions behind the scenes to our ever improving efforts at MHMSM.com.  I sent this off by email and in one case also by fax to each of the three who represent me.

I share the guts of it for your consideration.  You are welcome to use this, or elements from this, in your own outreach to Congress.  I won’t say this is comprehensive, it doesn’t touch on the SAFE Act issue for example.  But what it does is outline a variety of points that are important for us to achieve our potential as an Industry!

I am mindful that last month, we flooded the FHFA with “thousands” of comments!  There were so many, that it reportedly shut down their email posting system. Let’s approach Congress with that same type of vigor.

Take 20 minutes to an hour, and just do this.  Reach out to your Congressperson and your two U.S. Senators.  Please, do it today if you can, but don’t let it fall off your radar.  You are in this Industry.  You have associates whose jobs depend on this Industry.  Think, we could grow 400%-1600% by some estimates, if these items are addressed successfully in Washington.

That should be all the incentive that you and everyone who works with you needs.  I guarantee you, that if Congress gets floods of messages, like this, or in your own words, we will see action in 2010. I personally sent this on our letterhead.

==>  Here’s the meat Tony sent to U.S. Legislators.  Feel free to use it. <==

Dear Congressman/Senator

I am a resident of Glenview, IL and a member of the Manufactured Housing Institute (MHI), an industry trade association that is based in Washington, DC. I am writing you today as the publisher of Illinois-based Manufactured Home Marketing Sales Management trade magazine (www.MHMSM.com), the Industry’s premier news and views resource, with 30,300 readers in July 2010. Our readers include owners, executives, association leaders and management of companies with more than 500,000 people still working across the U.S.

I have been working in various aspects of the Manufactured Housing Industry since 1981. To my recollection, we have never faced so many challenges as an Industry, as we do now.

We need your help, please!

INTRODUCTION

Danny Ghorbani, president and CEO of the Manufactured Housing Association for Regulatory Reform (MHARR), has stated in interviews with us that the industry has many friends on Capitol Hill. In fact, he has told me personally that we are “a dream industry” and loved by many elected officials, because we provide affordable quality homes for people of low to moderate income; we do so without subsidies and can also serve people of any income with appealing, safe homes that cost some 30-40 percent less than conventional construction. In states such as Texas, manufactured housing has provided as much as one-third of all new housing starts, but due to financing and regulatory challenges, we have slipped from a high of more than 372,000 homes in 1998, to just under 50,000 new homes sold by manufacturers in 2009.

At precisely the time that our great nation needs more jobs and affordable, quality homes, our Industry faces serious challenges. Congress has given the industry great legislation such as the Manufactured Housing Improvement Act of 2000 (MHIA 2000), FHA Title I Reform and the GSE’s “Duty to Serve” underserved markets provision passed in 2008. Yet implementing this legislation has been a real issue.

There are voices in Washington who now say we should turn away from supporting home ownership, and turn instead to providing support for rental housing. Where is the logic in that thought? Someone has to own a home, be it a rental or owner occupied! Support for rentals is like saying we will pump money into the hands of those who have it – the landlords – rather than give millions an opportunity to own. Those millions could build equity and improve their lives if affordable housing is made available to them.

The problem with the mortgage meltdown was due in part to forces putting people into homes they couldn’t afford, due to terms and qualifying that were too lax or counterproductive to long-term ownership and economic interests. But the idea of home ownership should not be discarded because of a breakdown or abuses of the system. That would be like saying that we should jail honest citizens because some people commit crimes.

Rather, the answer is that we need to create jobs through the availability of affordable quality homes! The manufactured housing industry, which has served the nation for decades, provides the answer.

THE CHALLENGES

Before addressing specific issues, let me paint a picture for you of what America faces and why manufactured homes and factory built housing in general makes so much sense.

1 The U.S. population is growing larger.

Based on the middle-series projections, the nation’s population is projected to increase to 392 million by 2050 — more than a 50 percent increase from the 1990 population. See: http://www.census.gov/population/www/pop-profile/natproj.html

2 The U.S. population will be older than it is now.

In all of the projection series, the future age structure of the population will be older than it is now. The last of the Baby-Boom population will reach age 65 in the year 2029. By that time, the Baby-Boom population is projected to be only about 16 percent of the total population. See: http://www.census.gov/population/www/pop-profile/natproj.html

3 The U.S Housing stock is aging.

The median age of US Housing Stock is 36 years. See: http://portal.hud.gov/portal/page/portal/HUD/press/press_releases_media_advisories/2010/HUDNo.10-138 (July 1, 2010)

An early report shows that the median year American homes were built was in 1969.

Most American housing is located in metropolitan areas; www.huduser.org/periodicals/ushmc/fall00/summary-2.html

Age, Size and Equipment Characteristics of U.S. Households: More than 90 percent of the current U.S. housing stock was built before 1990. See:

http://eetd.lbl.gov/ie/pdf/LBNL-43640.pdf

When we think about the lower energy standards of those older housing units, and the fact that many homes are 70-100+ years old, there is no question that American housing needs updating.

4 The current economic instability means lower earnings for millions of Americans.

President Obama has twice gone to Elkhart, Indiana, where unemployment is among the highest in the country. Elkhart is also home to many manufactured housing producers. The promise of jobs that were made there could be kept by providing the necessary political and regulatory support for manufactured housing.

VIABLE SOLUTIONS

To me and thousands of others in our Industry, when we look at the facts, we see a picture that says this:

• The real driver behind the U.S. Economy for decades has been housing.
• We need housing for a growing population. There is likely to be a large demand for smaller houses and more affordable houses
• We need to replace housing that is aging or in poor condition, including 2 million pre 1976 mobile homes (i.e., pre-HUD Code).
• As the population ages, we will need more single-level and affordable housing
• Only manufactured and modular construction of homes can rapidly meet the needs of the nation during a disaster.
• We need jobs, we need manufacturing…
• …so we need manufactured housing now more than ever!

We in the manufactured housing industry have production; we have an energy-efficient and affordable quality product. We have customers; we have demand. So the problem is not in our industry – it found in various bottlenecks is in Washington, DC.

WHAT CAN CONGRESS DO TO HELP?

HUD’s Teresa Payne told the MHI members at our Summer Meeting in Washington, DC this past July 13-15th, 2010, that “Manufactured Housing Still Rocks!” See

http://www.mhmarketingsalesmanagement.com/blogs/tonykovach/manufactured-housing-still-rocks/

That said, here are issues that in many cases have been hampered in Washington, DC, that are crying out for Congressional action.

1. Financing is the key to any big ticket sale. Financing helps retailers sell more new homes, and proper financing would help consumers re-sell used manufactured homes. There are currently some 20,000,000 such home owners in the U.S. and cutting off financing to them is like trapping them in their homes, should they need or want to sell. The next two points could specifically address this critical need for the Industry and the millions of people it serves.
2. GSE’s “Duty to Serve.” Congress passed this in 2008, and the GSEs have stonewalled. Let me share an analogy. If a citizen fails to abide by the law, we get fined, jailed or perhaps strung up! How can the FHFA fail to move on getting the GSE’s to implement the will of Congress?  What is the consequence for ignoring the law?
3. FHA Title I reform. The standards and rules that FHA has put in place will allow only the largest lenders to do FHA loans, due to the high capitalization requirements. While there are efforts underway to move this ahead, Congressional intervention could speed the process.  Letters from the House and Senate to FHA on making the entry requirements for lenders on the Title I Program could make a difference!
4. SBA Floorplan lending. Congressman Joe Donnelley of IN is seeking bi-partisan support for a measure to extend and improve the SBA floor plan lending program. Without wholesale (floor plan) lending, many retailers, developers and community operators simply can’t purchase homes from factories to display for retail buyers to see them. Donnelley’s measure could aid the industry considerably in this practical need, along with giving similar support for the RV and the Automotive Industries. H.R. 5734. The companion bill was the Small Business Lending Fund Act of 2010, Sen. Mary Landrieu, D-La.
5. Passing the Energy Efficient Manufactured Housing Act. Senate Energy and Natural Resources Committee adopted the Energy Efficient Manufactured Housing Act (S. 1320). The House passed companion legislation (H.R. 5019) in May. This would help replace older mobile homes, – i.e., those factory-constructed houses built prior to the passage of the HUD Code for manufactured housing went into effect on June 15, 1976 – with new Energy-Star-qualified homes. This helps the most poor and elderly.
6. MHCC and HUD. MHARR has expressed grave concerns that the intent of Congress in creating the Manufactured Housing Consensus Committee (MHCC) is being neutralized by HUD. I’ve personally spoken with members of the MHCC, who echo MHARR‘s Danny Ghorbani’s concerns. If regulators are allowed to push forward any regulation without an effective voice for consumers and manufacturers, then regulators – no matter how well intentioned – can de facto wreck havoc on the Industry they regulate. HUD should have a clarification of the intent of Congress in passing the MHIA of 2000, which clearly spells out the fact that HUD must go through the MHCC process and can’t impose its will outside of and apart from expressed approval the MHCC process. Some regulatory issues now pending, include:

• RE: RIN 2502-A172 Manufactured Home Construction and Safety Standards, Test Procedures for Roof Trusses
• Docket Number FR-5295-P-01; RIN 2502-A183 On-Site Completion of Construction of Factory Built Manufactured Homes.

1. It should be noted that the intent of Congress was to make manufactured housing performance based, as opposed to a proscriptive code. This would allow for technological advances to move the Industry ahead, control material waste and costs and give the best possible product to the consumer. The MHCC process was supposed to foster that, but as noted, a discussion with a number of MHCC members indicates that HUD is now trying to effectively over-ride/neutralize the Committee, contrary to the intent of Congress in passing the MHIA of 2000. Let’s not hamstring American ingenuity.  A letter to HUD on this issue from your office would be helpful.
2. Federal Pre-emption of HUD Code Manufactured Homes. Pre-emption simply means that the federal HUD Code pre-empts local building codes. This was a marvelous idea that dated back to the original passage of the HUD Code by Congress back in 1974. Pre-emption – in theory – simplified and reduced those costs for construction that were mostly regulatory in nature. I say ‘in theory,’ because practically speaking, local jurisdictions often ignore pre-emption! Nor does HUD often impose its authority in those cases where pre-emption is ignored. Let me give another analogy to make this point. If the FBI shows up at a crime scene and asserts federal jurisdiction, the local law enforcement agencies have to stand aside. The same should be true with the HUD Code for Manufactured Housing! Local jurisdictions don’t attempt to over-ride HUD on fair housing laws, why does HUD allow it with respect Manufactured Housing? A letter to HUD asking them to enforce federal pre-emption may set the stage for more vigorous action by HUD when state or local jurisdictions ignore federal law regarding manufactured housing placements and related regulatory issues. The widespread use of the HUD Code could and would flourish if pre-emption and the points made above would be enforced.

MYTHS

There are many myths about manufactured housing that we have tackled in various “Industry in Focus Reports” by our Eric Miller.

• http://www.mhmarketingsalesmanagement.com/industry-news/industry-in-focus/723-hurricane-risk-prove-manufactured-housing-safer-bet

• http://www.mhmarketingsalesmanagement.com/industry-news/industry-in-focus/696-tornado-caused-more-destruction-to-conventional-construction-than-to-mobile-or-manufactured-homes

• http://www.mhmarketingsalesmanagement.com/industry-news/industry-in-focus/739-insurer-study-on-manufactured-homeowners-provides-insights

These require a free sign up and login, which is linked below:

http://www.mhmarketingsalesmanagement.com/user-registration

The point is that today’s manufactured homes are not yesteryear’s ‘mobile homes.’  They should no longer be treated as mobile homes, they should be treated on par with conventional housing!  America needs this industry, and you and Congress have an opportunity to support a jobs creation simply be supporting the items noted herein.

SUMMARY

I could summarize the news stories above by saying that insurance, university, government and other studies prove that today’s manufactured housing is stronger, smarter, safer, stylish and offers major savings. Today’s Manufactured Housing (as opposed to pre-HUD Code mobile homes, those houses built in factories prior to June 15, 1976, when the HUD Code for Manufactured Housing took effect) is in many ways superior to conventional construction. It is greener than conventional building can be. Size for size, manufactured homes are more energy efficient and less costly to maintain. Manufactured homes create jobs, and offers affordable housing to millions of Americans.

To show the potential appeal for today’s manufactured homes, you can visit our photo gallery at:

http://www.mhmarketingsalesmanagement.com/photo-gallery

The point is this. The Industry has lost dozens of manufacturing facilities. It has seen what once were its two largest HUD Code manufactured housing builders go into bankruptcy, along with many smaller manufacturers that have vanished. Had Congressional legislation been properly implemented, much of this could have been avoided.

In our July 2010 interview with Congressman Walter Jones (R-NC), he stated to us that

1. Congress can issue letters to regulators.
2. It can hold hearings.
3. As needed, it can pass legislation.

There are some items that need a vote or co-sponsorship of legislation that is ending. At the very least, House or Senate Members can send a letter saying, ‘What gives?”

We need some of each of these actions – from you, please.

Twenty million Americans who live in manufactured housing or pre-HUD Code mobile homes and the 500,000+ jobs the Industry represents are counting on your support. Please let your voice be heard and take action on any of the points outlined above.

Write your Congressman

Write your Senator

Thank you.

Respectfully,

L. A. ‘Tony’ Kovach

Publisher, http://www.MHMSM.com

tony@MHMSM.com

847-730-3692

We have what will no doubt be our strongest line up ever at www.MHMSM.com. Let’s rephrase that, this will be the Manufactured Housing INdustry’s strongest line up of articles ever in a single publication.

Innovation – Information – Inspiration for Industry Professionals

That’s a strong claim, but see who’s coming to these pages in 72 hours. Check out any other publisher now or ever, and see when you’ve had more star power, more serious topics and more insights in one issue. Never before!

—

First – exclusive ‘one on one’ interviews.

A Cup of Coffee with…
• Bill Matchneer
• Don Westphal
• Ken Rishel
• Eddie Hicks
• Cheryl Hardee
Our A Cup of Coffee with… are unique interviews that give you insights into the PERSON as well as digging into HOT TOPICS like Industry leadership, financing, image building and the Industry’s future. You’ll want to read each one and make sure others do too.

We now literally have authors from (last name) A to Z! From Adams to Ziglar and others in between!

Joe Adams – Marketing
Market Research and Your Customer

Rachel Biermann – PR & Marketing
Thrive During a Recession

Amy Bliss – Associations
Flight, fight or freeze

Chad Carr – Management Corner
10 Downside Tips

Tim Connor – Sales and Management
Tough Questions
Sales Strategies of Six Figure Income Salespeople

Nadeen Green – Attorney
FAIR HOUSING IS AS EASY AS ABC (Part 2 of 2)

Sue Frost – Financing
NEW GAME New Rules

Tony Kovach – Growing the Industry in 2010
Innovate or Duplicate
How Everyone Involved Wins

Susan Knowles – Development profit Center
Community Owners and Fiber Optics

Steven Lefler – Green factory-built home building
How we are changing the factory built home for the public one at a time

Shawn Mullins – Engineer and management
Process Analysis and Design – A Marketing and Management Perspective (Part 2)

Ricardo Morganti – Retailer
Attitude or Badittude

Greg McClanahan – Retailer and People Skills
Fact’s Verses Meanings

George Porter – Installation
Footing Forward

Ray Schmitt – Upscale Retailer
Yanee Point

Dave Shanklin – Community and Finance

Recession-Proof Housing in California MHPs

Kent Stichter – Design and Marketing
Riddle Solved

Bob Stovall – Marketing and Internet
PR-lead-generation

John Underwood – Sales
the Power of the Present, the Power of Now

Don Westphal – Community Corner

First Impressions

Stephen Wheeler – LLCs: Tapping Gov’t Funds for Rehabing Used MHs.
Financial Assistance for MH Renter & Homeowners

Zig Ziglar – Motivation
Zig On Good choices

—

Our writers and INdustry Pros like you have made www.MHMSM.com #1. On the eve of our 6 issue, just about 72 hours away, we thank you for your support and encouragement!

Download those February articles now. Resolve now for you and your team members to take 10-15 minutes a day, every work day, and learn something new that will make your business stronger for the balance of 2010.

Learning and Applying an article a day will help keep the bill collectors at bay! Don’t forget our other blogs, with our new look.  Also keep in mind our 24/7/365 Industry and Housing news with star power of its own, Danny Ghorbani and Thayer Long to name but two …Bob our IT Manager has made it handier than ever. Take a look. ##