Tuesday, February 1, 2011

GOOD NEWS ON THE MODULAR HOUSING HORIZON

I was talking with some industry experts that follow the modular and site built housing industry the other day and I asked how they thought things were going with our industry.  Their answers came as a pleasant surprise confirming that some modular factories are actually doing OK this time of year.


It seems that there are quite a few modular home factories working with at least a month’s backlog which is a little unusual for the winter months.  Most of these companies are building a mixture of commercial and single family homes with the majority of the production going to the townhouse side.

However there are some factories, especially in the east, that are just hanging in by their fingertips.  These are ones that haven’t had much management change or business plan changes since the 90’s.  It just proves that change is inevitable.

I asked them how they thought sales were doing and they indicated that even though they are not at pre-recession levels, they are up over January of last year.  

We talked about the four types of factories that are out there right now.  Factories with a nice backlog and paying their bills on time; factories with nice backlogs that are behind on paying and on the flipside, companies that are slow but keeping current on their invoices and finally, there are the ones that are slow and not paying.

Though the last category is smaller this year than last, we all agree that some of them will not be around in the future.

It looks like the factories that make it until the spring will be the survivors and are already showing signs that they are looking beyond the end of the housing recession.  That’s great news for our industry.

1 comment:

Brandon said...

let's hope the slow and not paying ones close their doors so the rest of us can keep going without trying to match their desperate discounting and tall tales