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"What is Leadership?"

by Soheyla Kovach

SoheylaKovachMHProNews 50x50 Q75In 2009 and 2010, the manufactured housing industry hit bottom. What that means is that thousands of professionals and investors in the industry today have never personally experienced an era of high performance.

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Some believe that the only reason that manufactured housing hit a total of some 372,000 (+/-) new home shipments in 1998 think that was because of “easy financing.” While easy financing played a role, the reality check is that 372,000 (+/-) consumers believed that a manufactured home was the solution to their housing needs.

In several markets, one in three Americans who bought a new home, were buying a manufactured home in 1998.  Financing made that possible, but real people still made that choice.

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About 6 million new or resale conventional housing units will be sold in 2018, according to the most recent National Association of Realtors (NAR) data.

Trading Economics said that the seasonally adjusted annual rate (SAAR) of multi-family housing starts in May 2018 was 404,000. So multifamily alone is about 4 times the number of HUD Code manufactured housing units, based upon recent data.

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Trading Economics also said that new construction is running at an eleven year high.

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Facts are facts. Facts are neutral measures of reality. Once facts and their causes are understood, then the opportunities can be tapped. What the above data means is that the typical retailer could potentially be selling 10x (+/-) more manufactured homes. a typical market

Meanwhile, manufactured housing – while up from its bottom – is lagging far behind.

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Manufactured housing is projected by some to finish around 107,000 (+/-) new home shipments in 2018.

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Thousands of manufactured homes shipped today are for rental purposes in manufactured home land lease communities. While it’s a legitimate tool, ELS’ Sam Zell is among those who has said rentals ought to be managed well, and kept marginal.

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When the U.S. needs 8.3 million additional, new affordable housing units (NAR), and conventional builders can’t keep up, nor match our price points, why does manufactured housing lag so badly?

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MHProNews established the #1 audience in the industry by not shying away from tough topics. Thinkers come here, and then the doers get busy based upon new insights.  We believed the MH Industry would respond to actionable reality over platitudes.  Vision became reality.

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  • A lack of objective analysis and critical thinking as to the causes and cures for the industry’s low market penetration.
  • A widespread failure to recognize what kind of thinking and behaviors led manufactured housing to this relatively low point. Think about the Einstein quotes, above and further below.
  • Trusting in the wrong “leaders.”

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Eternal principles matter. For those who make up their “own morality,” the result is inevitably chaos. Imagine if everyone made up their own “rules of the road” in driving. Driving would become far more hazardous and slow. A common set of authentic core principles is necessary in a just and productive society.

The prophet Hosea (in the “Hebrew Scriptures,” “Tanakh” or for Christians the “Old Testament” Scriptures) proclaimed “My people perish for a lack of knowledge!” (Hosea 4:6)

Another version of that same passage is translated as “My people perish for a lack of vision.”

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Mutual victories is the essence of how progress occurs. By contrast, Win-Lose tends towards avoidable conflict.

MH Industry professionals and investors must become ever-more people of sound, authentic principles. The good of the customer and society ought to be the ultimate good for sellers and service providers.  Mutual victories are how progress occurs.

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There are needs for absolute principles in society, just as there are in math or science. Moral relativism doesn’t work in practice. The most just society imaginable would follow the 10 Commandments

Inspirational dissatisfaction is part of critical – analytical – thinking, and thus how advancement occurs.

Some people misunderstand the nuanced meaning of the word, “critical.”

Critical thought is analytical thought.

Analysis is born of the belief and desire that things can or should be better!

There is joy in the accomplishment of overcoming obstacles.

There is hope and excitement in facing challenges for the purpose of advancement.

What is leadership?

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The quotes shared are like the facets of a diamond. Each cut of the diamond is necessary to give it that majestic look when the light hits it.

Landscapers prune trees and shrubs. Pruning is necessary for health and growth, as well as for beauty.

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The thinking of the past roughly 15 years will not take manufactured housing to its potential. There are those who for whatever short-sighted or selfish reasons are content with how things are.  Others posture a good talk, but if they routinely violate ethical principles, how can they be good role models or leaders?

Phase One is Understanding based upon Information, which is a form of Education.  Phase One is ongoing, because understanding that flows from knowledge never stops.

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The industry can achieve 500,000 to 1,000,000+ new HUD Code manufactured homes sustainably, given the current new housing demands. That’s a 5x to 10x increase. That should be the achievable goal of every independent industry professional.
 
Phase Two is about to begin, a future based upon realistic potential. More about Phase Two in the days ahead.
Enough said for today on industry and what is leadership. Let’s dive into the news, reports, inspiration, and analysis from the week that was, which are part of the reality checks necessary for sustainable growth.
What’s New on MHLivingNews

Fame, Pretty Little Liars Star Nia Peeples’ Mobile…err….Manufactured Home Tour, Featured on Oprah Winfrey Network Video 

Nia Peeples explains in this video how her husband nudged her into considering a manufactured home near the beach. “The thing that surprised me the most about how I responded to moving in to such a small place is not that I loved it; the thing that surprised me was that we would always have … Continue reading

What’s New on the Masthead

Only 3 Options – the Elephant in the Room

Only 3 Options – the Elephant in the Room

Tweet A) In manufactured housing production, the elephant in the room is Clayton Homes. They are owned by Berkshire Hathaway, which also owns the 2 largest industry lenders, 21st Mortgage and Vanderbilt Mortgage and Finance (VMF). Berkshire also owns a large stake in the industry’s third largest single family manufactured home loan lender, Wells Fargo. … Continue reading

What’s New on the Daily Business News on MHProNews

Saturday 6.23.2018

Going to Pot – Marijuana, Illegal Drugs Controversies, and Manufactured Housing

Going to Pot – Marijuana, Illegal Drugs Controversies, and Manufactured Housing TweetThere are no known industry specific statistics, but it is safe to say that thousands of manufactured housing (MH) communities have dealt in some form of fashion with the problem of illegal drugs. The same is true with MH factories or other workplaces. Employers tell MHProNews anecdotally that a significant percentage of people who apply … Continue reading

Friday 6.22.2018

Economy – “There Are Some Worrisome Signs That We Must Confront” – Financial Services Chairman Hensarling

“Trade War Lost” – Ross, Cramer – ‘Trump Will Win’ Stocks Rebound, Plus MH Market Update

Uproar Over ELS’ Sam Zell Comments Continues

Uproar Over ELS’ Sam Zell Comments Continues

Tweet  “Billionaire Sam Zell has been removed as a keynote speaker at a Mizuho Americas conference following a vulgar comment he made about women earlier this month,” reports Bloomberg.   “I never promoted a woman because she was a woman,” Sam Zell, chairman of Equity Group Investments (EGI) and Equity LifeStyle Properties (ELS), said at the … Continue reading

MHVillage Confirms Data, and Michigan Operational Slide Revealed

MHVillage Confirms Data, and Michigan Operational Slide Revealed

Tweet In a message forwarded to the Daily Business News, MHVillage (MHV) confirmed troubling data that has been presented in person to dozens of gathered industry professionals. The factoids were shared by MHVillage’s Co-President, Darren Krolewski, using a positive-spin narrative. “Based in Grand Rapids, Michigan, MHVillage Inc. is the nation’s premier online marketplace for buying … Continue reading

Thursday 6.21.2018

As Trade War Talk Heats Up New Infographic Helps Visualize World’s Biggest Exporters

Act Now to Make Tax Cuts for Small Business Permeant

Act Now to Make Tax Cuts for Small Business Permeant

Tweet  Congress will soon consider permanently extending certain provisions of the “Tax Cuts and Jobs Act.”  Said the National Federation of Independent Businesses (NFIB) in a media release to the Daily Business News. According to a recent NFIB member ballot, “over 90 percent of small business owners support permanently extending the expiring provisions of the Tax Cuts and … Continue reading

SCOTUS – High Court Tax Ruling, and Manufactured Home Industry Impact

America First, Economic Nationalism, Sycophancy, Presidents and Manufactured Housing’s Future

America First, Economic Nationalism, Sycophancy, Presidents and Manufactured Housing’s Future

Tweet  There are millions who find the truth to be uncomfortable.   Millions are misinformed about manufactured housing. The obvious answer is education. Millions don’t know, so they don’t understand just how failed many public policies have been. Millions don’t understand how public policy impacts business and jobs, including those in our industry. The obvious … Continue reading

Wednesday 6.20.2018

As Washington Boils, and Trade Roils, POTUS Heads to MN for Rally – Plus MH Market Updates

Federal Action Expanding Access to Quality, Affordable Health Coverage for Millions of Americans Employed by Small Businesses

U.S. President Praised “The Mobile Home Industry,” Manufactured Homes are “Here to Stay”

U.S. President Praised “The Mobile Home Industry,” Manufactured Homes are “Here to Stay”

Tweet“You are entrepreneurs in the best tradition of the free enterprise system.” ~ The President of the United States to the MH Industry   The U.S. President began his talk with these words, “There are problems in the economy and in the mobile home industry.  I am not so naïve as to deny that. I … Continue reading

Factory-Crafted Home Living, Reimagined – “The Art Park” vs. MHCs – Interview with Robbie Antonio, Founder of Unicorn Revolution Precrafted Homes

Factory-Crafted Home Living, Reimagined – “The Art Park” vs. MHCs – Interview with Robbie Antonio, Founder of Unicorn Revolution Precrafted Homes

TweetHousing is a global need, and Asia is the largest market. As the Daily Business News recently reported, U.S. based Hometown America is one of several operations in manufactured housing that has ties to Asia, some of which are deepening.  Hometown’s recently announced deal is valued at nearly ½ a billion dollars.   CNBC is … Continue reading

Tuesday 6.19.2018

Owners Report Increased Profits, Compensation, Expansion Plans

Tweet “The Small Business Optimism Index increased in May to the second highest level in the NFIB survey’s 45-year history,” said the National Federation of Independent Businesses (NFIB) to the Daily Business News in a release. “The index rose to 107.8, a three-point gain, with small businesses reporting high numbers in several key areas including … Continue reading

“Trade War!” Buffett, Tudor Jones, Lloyd Blankfein React, Plus MH Market Updates

White House Announces Surprise Pick to Head Consumer Financial Protection Bureau

White House Announces Surprise Pick to Head Consumer Financial Protection Bureau

Tweet “President Donald J. Trump announced [Monday] his intent to nominate the following individuals to key positions in his Administration,” the White House pressroom tells the Daily Business News. Dino Falaschetti of Montana, is to be the Director of the Office of Financial Research (OFR), Department of the Treasury.  The White House press room gave … Continue reading

Facebook, Marketing & News – Manufactured Housing Pros, Sarah Miller, ‘Citizens Against Monopoly’ Sound the Alarm

Facebook, Marketing & News – Manufactured Housing Pros, Sarah Miller, ‘Citizens Against Monopoly’ Sound the Alarm

Tweet “We got word that [Tuesday], Facebook Inc. is inviting Capitol Hill staffers to Washington DC’s “newest, most exclusive event venue” for free food and drinks. Events like this enable Facebook to peddle influence in the halls of power, and keep lawmakers from cracking down on its abuse of our democracy.” So begins a statement … Continue reading

Monday 6.18.2018

Different Kind of Community Closure, Continues Grabbing Headlines in Mainstream News

Different Kind of Community Closure, Continues Grabbing Headlines in Mainstream News

Tweet“Don’t pretend that this isn’t happening, folks,” said receiver Mark Adams, addressing a gathering of the remaining residents of the Loyalton Mobile Estates, per KOLOTV. “I’m sympathetic. I understand this is where you’ve been living, but it is what it is and it is happening.” That was several months ago, and the community is now … Continue reading

Housing, Oil, and Tariffs, Plus Manufactured Housing Industry Market Report Updates

Ease Shortage with 400,000 More Manufactured Homes for California, says Jonathan Lansner, MHI’s Next CEO?

Ease Shortage with 400,000 More Manufactured Homes for California, says Jonathan Lansner, MHI’s Next CEO?

TweetIndustry professionals should note the mixing of nomenclature, or feel a level of angst in reading in California’s Orange County Register the following.   “Look, I know mobile homes[1] are not for everybody and have a nasty stigma that is sometimes deserved.” That line was preceded by the opening words, “Bet you didn’t know California … Continue reading

Is Your Operation a David vs. a Goliath? 4 Keys to Success, Monday Morning Manufactured Housing Marketing and Sales Meeting

Sunday 6.17.2018

Sunday Morning Manufactured Home Industry Research, Reports, Headline News Recap 6.10.2018 to 6.17.2018

And that’s all she wrote, with a little help from that other guy, during the week that was. That’s “News through the lens of manufactured housing.” © ## (Headline news, week in review, recap, analysis, commentary.)

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Submitted by Soheyla Kovach to the Daily Business News for MHProNews.com. Soheyla is a managing member of LifeStyleFactory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com.