Saturday, September 8, 2012

Site Builders Need to GO MODULAR Right Now

Site builders could be building more homes but they are being crippled by a shortage of skilled labor.  This shortage is hitting their bottom lines.

With low interest rates and relatively low new home costs, buyers are hungry to move into their new home before the interest rates start to climb up from the lowest they’ve ever seen.

Now the cost of new housing is beginning to go up fast and one of the biggest reasons is the cycle time it takes to build a new home.  Site builders could have a house up and ready for occupancy in 6 months just a few years ago but that time frame has increased to 9 months in many areas including the Northeast and South. Labor prices have increased about 10% this year.

The housing industry has lost over half of its production builders along with the subcontractors that supported them.  It’s not like these guys are waiting by the phone as its been 6 years and they have moved on and found other work.

Many former construction workers moved on to facilities maintenance work or remodeling or whatever they could find.  Now site builders are finding it difficult to replace them because today’s market demands highly skilled workers and there is simply no available labor base.  In the past builders would hire unskilled labor and train them in the field but they can’t afford that luxury today. Nearly 50% of all new construction will be green by 2014.

Modular home factories should see this an opportunity to market modular home construction to both custom and production site builders and begin doing it now!

Modular factories offer:
  • Skilled labor force
  • Good wages for production people
  • Design and engineering people on staff
  • Clean and dry building environment
  • Knowledge of latest green and energy building techniques
  • Fixed costs
  • Shorter cycle times
  • Greater customization than ever

Going modular also allows the site builder to book more houses because up to 80% of the house is complete in the factory along with the elimination of certain inspections that are performed in the factory and not required in the field. 

Here is the best reason for site builders to go modular - - - - TIME SAVED!

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