Friday, June 10, 2011

LIFE IS GOOD AT NATIONWIDE HOMES

As always, I'm very skeptical about companies that are acquired by investment companies or by larger companies in the same business.  But so far H.I.G. has proven a good fit for Excel Homes, All American Homes and Mod-U-Kraf Homes and I hear that good things are continuing to happen there.

The one deal that I thought might result in a less than perfect fit was when Cavco, through their Fleetwood division, bought Palm Harbor Homes, the manufactured housing company, and it's true modular home division, Nationwide Homes.
Well, sources just confirmed that not only is Nationwide Homes doing very well under their new leaders, it's actually got a back log that is the largest since the housing crisis started 4 years ago.  Money is being invested in the brand and new product lines are being introduced.  They are even going to redesign their website.

This is not only good news for them but also proves that investors can make things better when they buy a modular home factory. 

The most interesting point here is that Nationwide Homes is almost exclusively a single family home factory.  Commercial and multi-family have never been their strong suit.  Single family will be the sharp end of the recovery spear and Nationwide Homes seems to like being there.

Good luck to all the sales people, production workers and support people. 

4 comments:

William said...

Coach, I have and continue to be a big fan of Nationwide but let's not be premature on proclaiming that Nationwide is/has turned the magical corner on new order input. We are in the midst of what normally is the peak of the building season so let's wait until the fall/winter season to see what happens before we start blowing up the baloons and setting a party date.

Anonymous said...

Coach:
Perhaps you should have checked on the camper trailers that were ordered and are running on the line. Are we to consider this as an uptick in their modular business?

Coach said...

I'm a little confused. What does travel trailers have to do with modular homes built by Nationwide Homes?

Anonymous said...

Coach, I think Anonymous 11:17AM means that NATIONWIDE HAS CAMPERS ON THEIR ASSEMBLY LINE. Perhaps sent there by Fleetwood/Cavco to fulfill a contract from FEMA. Hmmmmm...modular business pickup up???????