Sunday, July 7, 2013

Blu Homes Expands Michigan Offices

I continue to marvel about the success Blu Homes is having while the rest of the modular and prefab industry is still going through tough times. They just acquired new offices in Ann Arbor, Michigan that will house their "design staff" of 36 professionals along with 23 more Architects spread throughout the Boston and San Francisco offices.

That's about the total number of Architects in the rest of the modular and prefab industry combined!

Riverfront Building in Ann Arbor, Michigan

They have built, according to them, about 100 homes since they began about 4 years ago but announced they are on track to build 120 this year. That's 10 homes a month folks!

Quick question - If it takes up to 2 months to build one of their home in the factory and assuming that each house is 2+ modules, is their factory large enough to hold 40-60 boxes on the production floor on any given day?

CLICK HERE to read the article.

8 comments:

Anonymous said...

I can't believe the amount of BS coming out of Blu Homes. Coach's question is valid about the number of units that have to be on the floor at the same time. I've seen the factory and I can tell you that there is not enough activity to produce two or three homes a week. I think that Maura and Bill sold that reporter a pile of stemaing cow dung.

Ibgreen said...

It would really be interesting to get hold of the P&L statements that have attracted this amount of financing. Coach, ignore the product, this is an excellent case study in the power of marketing to attract investment.

Anonymous said...

ibgreen, Bill Hane said that he doesn't open Blu Homes P&L statements because they are a private company. If they ever go public they have to open them and then I think prefab housing will have its own little Enron.

If it wasn't housing, they would probably try to get investors to pony up money for somethng else like maynbe a cancer cure.

Ibgreen said...

Yes, they are a marketing firm that builds mods.

Coach said...

I agree with ibgreen that they appear to be as much a marketing company as they are a modular home factory but guess what...they got $65M and all I got was the T-shirt.

Ibgreen said...

It is funny to read their Yelp reviews. The overall theme being fit and Finnish not on par with the price point and expectations. One reviewer commented on how many shortcuts in materials were in this "million dollar house". Blu corrected the reviewer and said that the base price for that particular design was $585,000 not one million................and all the fit and Finnishs issues were due to the high amount of customization..........

Anonymous said...

more importantly read the screened yelp reviews, that is where the true reviews are, Maura McCarthy flags any review that is not 5 stars and trys to get it banned, she's a lying pitbull

Isaac Lassiter said...

With their beautiful videos and high marketing budget you would expect to see more set videos. But there are very few. I build in California and have serious doubts that more than 30 custom modulars can be throughput on the entire network by any firm. The red tape makes it impossible to fill up your plant once, much less keep it full enough to be profitable. They would have to be developing their own for sale units (a la Australia's top mod builder) to give this biz model a chance. Contract sales as a business model is highly likely to fail in this instance. There are not enough rural buyers of Blu's pricey mods to make up for urban project's 2-3 year permitting process.

This is a classic case (Michigan office story) of a top heavy firm. The clients want their money spent on direct value add to their homes, not on ping-pong tables and resume filler for recent UMich architecture grads when they move on to high powered architecture firms.