Thursday, May 26, 2011

10 CHALLENGES FACING MODULAR HOME DEALER/BUILDERS

This housing crisis has been disastrous for a lot of smaller modular home dealer/builders.  Heck, even the big guys like Toll Brothers and Ryan Homes have been bleeding money for the past few years.  Many builders have found that they need to accept that what is happening now as the "new norm" and what happened in the past just won't work anymore.

Here are 10 challenges that every new home builder is facing today:

  1. Building homes is becoming more complex. There is a increased demand for more sophisticated building methods including green materials and energy saving construction techniques.  
  2. Homes have to be priced more competitively than ever.  Builders aren't just competing with other builders, they are now competing with banks, short sales and foreclosures.
  3. Builders need a better support system.  Modular home factories must step up and become that support, not just a place to buy a couple of modules to build a house.
  4. Builder must continually be educating themselves.  No one else can do it for them and they can't expect their factory rep to be their only source of information.
  5. Prospective home buyers will be looking at their builders for help when it comes to getting a mortgage.  Make a wrong calculation or price in something that has little or no resale value and the bank may turn down the loan.
  6. Old style management is dead.  Builders must learn to work closer with their subcontractors and employees mainly because their is a smaller pool to choose from.
  7. Customers are demanding more complex building systems than ever.  How does a builder go about working with a solar contractor and the factory to insure that when the house is delivered that all the things the solar needs is actually in the house.
  8. Better informed customers have an improved understanding of their needs and therefore impose greater requirements on home builders. Think how Facebook has changed buying decisions.
  9. Competitors are increasingly becoming more sophisticated and smarter.  They have to be to become a survivor in this business.
  10. New technologies, new business conditions, new regulatory and legal requirements, new practices, and new demands are being introduced more quickly than ever before. These changes require proactive stances to detect future needs and very different approaches to plan, create, and implement solutions.
Gen Y Home Builder
And finally, there is a new breed of home builder coming on-line that works well under these conditions.  They know how to work the social media outlets, are eager to learn everything they can about green and energy construction, how to use the Internet to their advantage and are willing to work harder than the old guard to get customers.  The GEN Y home builder is here and unless you're working hard to build your business, they will eat you for lunch!

1 comment:

William said...

what is the definition of the GEN Y BUILDER?