Friday, June 7, 2013

Some Modular Home Factories are Booked Solid

Hoping that the recession is finally gone, several modular home and prefab factories have told me they are booking homes for November delivery. Just a year ago these same plants were wondering where their next home was coming from.

Factories in New England, PA, the Mid West and even on the West Coast are telling me that this is their best year in almost 6 years. Hurricanes on the East Coast, tornadoes in the Central States, a renewed building surge on the West Coast along with low interest rates have increased demands for new homes.

That's my good news for the day.


Anonymous said...

Not to be too skeptical or negative, but what does "booked solid" mean? Booked solid when you are running at 35% of factory capacity is not really booked solid.

Coach said...

Booked solid to me means that the factory is running near optimum capacity for making a profit. 35% can be a good number if everything is geared for a factory to make a profit at that percentage.

However, booked solid through November could mean that anyone placing an order for a new home right now won't see it until then at the earliest.

Different strokes for different folks.

Anonymous said...

Booked solid through November for Blu Homes probably means that they have orders to build six homes, one a month. But the co founders will spin that to one house a day and $100M in bookings excluding cancelation rates.

But first they'll do a few videos and then have a few wine and cheese parties.

Anonymous said...

Why all the Blu Homes haters? They are revolutionizing the industry.