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Sunday Morning Manufactured Home Industry Research, Reports, Headline News Recap 7.8.2018 to 7.15.2018

July 15th, 2018 No comments
SundayMorningManufacturedHousingIndusryNewRecapMHProNewsLogoDaliyBusinessNewsMHProNews7.8.2018to7.14.2018

Trivia note: that’s how the MHProNews home page looks like on that iPad screen, just moments before the Sunday Morning weekly recap is published. We do get typos, but we also sweat the details, all for thousands of industry readers like you.

Albert Einstein, Zig Ziglar, Martha C. Nussbaum, and Manufactured Housing

 

There are those who mistakenly think they don’t understand the value of an honest critique

But the truth is that we all know the value of objective analysis, because we all rate things – be they spoken, written, expressed by 1 to 5 stars, social media likes, and the critiques one keeps to oneself.

AlbertEinstienZIgZiglarMarthCNussbaumManufacturedHousingDailyBusinessNewsMHProNews 

The manufactured housing industry stands at the edge of great potential. That’s the logic from various third-party factoids found on Saturday’s Daily Business News report, linked below.

HumanitiesValueBuisnessCriticismDissentWhenGoingAlongGetAlongWhereWhistleblowersDiscouragedBadThingsHappenBusinssesImplodeMarthaCNussbaumPhotoQuote

Design by MHProNews.

How does a manufactured housing industry professional, advocate or investor best tap into the potential of manufactured homes during this raging affordable housing crisis?

WeCannotsolveOurpRoblemsWiththeSameThinkingWeUsedWhenWeCreatedThemALbertEinsteinQuoteManufacturedHouusingIndustryMHProNews

In part, by understanding reality.

The ideal balance for achieving that reality check is SWOT. 

SWOTAnalysisDailyBusinessNewsMHProNews

The four quads of a good SWOT analysis. Strengths, Weaknesses, Opportunities, Threats.

Part of SWOT is identifying threats and weaknesses. Those who only do cheer leading are arguably hobbling progress.

TheFirstStepInSolvingAProblemIsToRecognizethatItDoesExistZigZiglarDailyBusinessNewsMHProNews

SWOT is a critical analysis, using a different phrasing. 

It’s like an employee evaluation, the more objective it is, the better. After all, the principle is that one gets more of what we encourage, and less of what we discourage, right?

 TurthSoundsLikeHateToThoseWhoHateTheTruthQuotePrismDailyBusinessNewsMHProNews

The truth or evidence can be disturbing, but usually it’s uncomfortable because it’s misunderstood, or due to someone being in denial.

No good parent or coach let’s a child or team mate keep making the same mistakes without guidance. No good doctor would fail to warn a patient about risks to life or limb.  All of those are examples of critiques.

The quotes from Martha C. Nussbaum, Albert Einstein, and Zig Ziglar are useful reality checks from respected minds, that come from a variety of disciplines.

 MarthaCNussbaumAmericanPhilosopherLegalScholarWikiManufacturedHOusingIndsutryDailyBusinessNewsMHProNews

For baseball or sports fans, Tony reminds me periodically of the Mickey Mantle quote shown.

 

ItsUnbelievableHowMuchYouDontKnowAboutGameYouveBeenPlayingAllYourLifeMickeyMantleBaseballHallFameMastheadManufacturedHousingIndustryCommentaryMHProNews

What hall of famer Mickey Mantle said about baseball applies to manufactured housing too.

When an industry that has as much potential as manufactured housing has today  – and yet is still underperforming – there must to be objective reasons for it.

IfIHadAnHourToSolveAProblemIdSpend55MinutesThinkingAboutthePRoblemAnd5MinutesThinkingAboutsolutionsAlbertEinsteinquoteMHProNews

Objective analysis and critique are essentially for growing a business or location’s sales, and thus the industry to its potential.

The quotes shown remind readers that critique is useful, necessary, and – surprisingly! – positive, but only when it is properly viewed and understood.

KnowledgeIsNoGuaranteeofGoodBehaviorButIgnoranceisaVirtualGuaranteeofBadBehavior-MarthCNussbaumPhDQuotePhotoManufacturedHousingIndustryProNews550x315

On MHProNews, we hunt for, curate, and share information that’s designed to inspire superior performance for those who tune in, objectively think matters through, and thus ‘get it.’

With those insights and thoughts in mind, let’s dive into the headlines from the week in review.

 

What’s New on MHLivingNews

 

MHLivingNewsImprovedLivingForLe$$taglinedropshadow

MHLivingNews features lifestyle and living news on prefab housing, with a focus on manufactured homes.  It’s the industry’s most robust, facts and evidence based educational website for the general public.

Exposé! Heartbroken Conventional Housing Buyers? Dare to Compare Site Built with Modern Manufactured Homes

Exposé! Heartbroken Conventional Housing Buyers? Dare to Compare Site Built with Modern Manufactured Homes


What’s New on the Masthead

 

Profits, Understanding Human Events, and Manufactured Housing

Profits, Understanding Human Events, and Manufactured Housing

 

What’s New on the Cutting Edge

 

Savvy Stealth Marketing – and “Product Placement” Storytelling

Savvy Stealth Marketing – and “Product Placement” Storytelling

 

What’s New on the Daily Business News

DailyBusinessNewsLogoMHProNewsLogo (1)

Saturday 7.13.2018

7 Reasons Why Manufactured Housing is Poised to for More Rapid Growth

7 Reasons Why Manufactured Housing is Poised to for More Rapid Growth

 

Friday 7.12.2018

Really? Taxes are Cut, Tax Collection and Revenue Grows?

Really? Taxes are Cut, Tax Collection and Revenue Grows?

Stocks Just Did What? Plus Manufactured Housing Industry Market Updates

 

City Fighting to KEEP Dozens of Manufactured Home Communities

City Fighting to KEEP Dozens of Manufactured Home Communities

Friday the 13th, Mobile Homes, Fires, Tornado Magnets and the 2020 U.S. Census

Friday the 13th, Mobile Homes, Fires, Tornado Magnets and the 2020 U.S. Census

 

Thursday 7.11.2018

Capitalism, Socialism, & Manufactured Housing

Capitalism, Socialism, & Manufactured Housing

“Protecting & Promoting Competition” Stunned Defendant, as DOJ OK’s Anti-Trust Appeal, Plus MH Market Updates

“Protecting & Promoting Competition” Stunned Defendant, as DOJ OK’s Anti-Trust Appeal, Plus MH Market Updates

Manufactured and Modular Housing Factoids, and Profitable Analysis

Manufactured and Modular Housing Factoids, and Profitable Analysis

Investors, Heartbroken Home Owners, Site Building Giant DR Horton, and Manufactured Housing

 

 

Wednesday 7.10.2018

DOJ Anti-Trust Division Looking to Appeal Decision, Plus Manufactured Housing Market Updates

Proper Definitions, Mobile Home, Manufactured Home, or Trailer House – Civil Rights, Respect, Public Policy, & Value Issues

Proper Definitions, Mobile Home, Manufactured Home, or Trailer House – Civil Rights, Respect, Public Policy, & Value Issues

“Fear Mongering,” and Manufactured Housing Advancement

“Fear Mongering,” and Manufactured Housing Advancement

How Warren Buffett Built Berkshire Hathaway Investment Empire, Infographic

How Warren Buffett Built Berkshire Hathaway Investment Empire, Infographic

 

Tuesday 7.9.2018

Texas Commission Talks West Texas Oil Boom, Plus Manufactured Home Market Updates

Forbes Boast$ about Manufactured Home Community Operation

Forbes Boast$ about Manufactured Home Community Operation

“RESTORING THE RULE OF LAW TO MANUFACTURED HOUSING REGULATION” – MH Leader Call to Action

“RESTORING THE RULE OF LAW TO MANUFACTURED HOUSING REGULATION” – MH Leader Call to Action

Dog Whistles, as Epic Battle for Business Effecting Manufactured Housing, Others Looms

 

 

Monday 7.8.2018

U.S. vs China, SCOTUS Pick, Biz Effects, and MH Market Updates

“Unconstitutional Taking,” “Gentrification on Trial” in Recent Oak Hill Manufactured Home Community Ruling

“Unconstitutional Taking,” “Gentrification on Trial” in Recent Oak Hill Manufactured Home Community Ruling

Beautiful Dreamers, Looks vs. Results? Monday Morning Manufactured Housing Sales, Marketing Meeting

Beautiful Dreamers, Looks vs. Results? Monday Morning Manufactured Housing Sales, Marketing Meeting

Winners and Losers, 5 Midwestern States, Manufactured Home Shipment Breakdown

Winners and Losers, 5 Midwestern States, Manufactured Home Shipment Breakdown

 

Sunday 7.7.2018

Sunday Morning Manufactured Home Industry Research, Reports, Headline News Recap 7.1.2018 to 7.8.2018

Sunday Morning Manufactured Home Industry Research, Reports, Headline News Recap 7.1.2018 to 7.8.2018

And that’s all she wrote, with a little hand from that other guy, during the week that was.  Stay tuned for some news and insights next week you won’t find anywhere else in MHVille.  That assurance comes with our money back guarantee. 😊 That’s News through the lens of Manufactured Homes, and Factory-Built Housing.” © “We Provide, You Decide.” © ## (News, analysis and commentary.)

(Third party images, content are provided under fair use guidelines.)

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SoheylaKovachDailyBusinessNewsMHProNewsMHLivingNewsSubmitted by Soheyla Kovach to the Daily Business News for MHProNews.com. Soheyla is a managing member of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com.

Manufactured and Modular Housing Factoids, and Profitable Analysis

July 12th, 2018 No comments
ManufacturedModularHOusingFactoidsAndProfitableAanlysisDailyBusinessNewsModularprefabManufacturedHomeProNews

Modular home photo, from MBI website. Modular home building saves time and money over conventional housing, but tends to be less savings that HUD Code manufactured homes yields for a similar size home.

Tom Hardiman with the Modular Home Builders Association (Modular Building Institute) thoughtfully confirmed for MHProNews the data on shipments of new modular homes cited by the recent Harvard State of the Nation’s Housing in 2018 Report.

 

TomHardimanModularBuildingInstituteBisnow-postedDailyBusinessnewsModularManufacturedHousingIndustryNews_001

Tom Hardiman, Modular Building Institute, credit, Bisnow.

Accuracy in information are important for all aspects of factory home building. 

The new Daily Business News report on D.R. Horton is designed for professionals, as opposed to the general public. 

What’s more useful for the home shopper is the MHLivingNews report on D.R. Horton, that’s linked here or further below.  Notice that the kitchen models shown are from a range of HUD Code builders, including one that’s never been a client or sponsor.

You can search high or low, and still have a hard time finding a place where either MHProNews or MHLivingNews has undermined the quality of any federally certified HUD Code manufactured home.

We advocate against that ever being done.

 

We do compare cost, politics, policies, or other factors that have no connection to the quality of a builders’ homes.

 

When this writer owned a record setting MH retail center, or in the ongoing work we do with factory-built home industry clients in:

   coaching,

   videos,

   websites,

   training,

  • recruiting,

   or inspirational speaking,

we never encouraged blasting a competitor for the quality of their homes. It’s a foolish strategy for those who do. Doing that also undermines the logic of why HUD Code manufactured homes.

Have you ever noticed that MHARR seems to have a similar policy? I’ve never asked, but over a decade of observation tells me that MHARR doesn’t talk about any builder’s homes. Rather, they stick with policies and related discussions. Critiquing an association is different than critiquing the quality of a builder.

That said, we do encourage strict, factual comparisons to site built housing options.

The secret sauce for manufactured housing sales advancement is education. Professionals need to be educated. Home seekers need more education too.

 

 

Another part of the secret sauce for manufactured home success is the right kind of analysis and comparisons. Trade media can open doors that a business can’t as readily.

The more expert the trade media, the more reliable the research, the more readers can count on what they see and view.   

Every other major industry you can think of has trade media.

It is common in other industries, that trade media reports problems, and does analysis, as well as successes.

 

QuestionMarksManufacturedHOusingINdustryDailyBusinessNewsMHproNews

 

Ask Yourself This…

Stop and think. Which would YOU believe or trust more:

   An automotive, travel or tech trade site that praised everything, and never critiqued anything?

   Or would you find those tech, auto, or travel media that candidly critiqued and reported on issues, so that you can be better informed?

Isn’t the obvious answer the second option?

We’ve said on MHProNews for years that every publication in MH that has an audience has some value.

But are those that won’t honestly analyze the clearly failed “leadership” that has caused manufactured homes to be at such a relatively low level of acceptance helping or enabling the industry to make needed course corrections?

 

We Take It Too

We get a steady steam of reader comments and feedback. They range from cheers to sneers. We consider comments from readers. Everyone likes praise. But we carefully consider critical comments. What do they tell us?

It’s all part of our own reality check.

 

CritiqueHighlyVisibleEcnouragesIndividu8alsRaiseStandardsDavidDidauQuoteMastheadBlogManufacuredHousingIndustryMHProNews

Critiques, properly understood, are a way of improving performance. Every business, every sports team which aims to win does evaluations, which are a critique. “We Provide, You Decide.”

The D.R.Horton report on MHLivingNews carries the added weight of being the industry’s top publicly focused trade media.

Exposé! Heartbroken Conventional Housing Buyers? Dare to Compare Site Built with Modern Manufactured Homes

Consider sharing links to that with the general public. Consider sharing the links to the Daily Business News, and this analysis, with peers, colleagues and other professionals.  Note that many of the same points, other than HUD Code home related items, apply to modular homes. Rephrased, the quality of modular or manufactured homes will both routinely be better than what is found in conventional, site building. Not a slam, just an evidence based reality that the D.R. Horton story exemplifies. 

That’s “News Through the Lens of Manufactured Homes, and Factory Built Housing.” © On MHProNews,We Provide, You Decide.” © ## (News, analysis, and commentary.)

Footnote 1: The expression by Jim Reitzner is a generic statement periodically used by that manufactured home industry professional that seems to fit this topic; but bit should not be construed as a direct quote by him given for this column.

(Third party images, and content are provided under fair use guidelines.) Related Reports, are linked below…

ManufacturedHomeIndustry#1HeadlineNewsMHProNews

To see a sample of our emailed news update, click here. To sign up for the factory-built home industry’s #1 headline news, click here or the graphic above.

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Publisher and industry consultant, L. A. “Tony” Kovach.

By L.A. “Tony” Kovach – Masthead commentary, for MHProNews.com.

Tony is the multiple award-winning managing member of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com.

Office 863-213-4090 |Connect on LinkedIn:
http://www.linkedin.com/in/latonykovach

Click here to sign up in 5 seconds for the manufactured home industry’s leading – and still growing – emailed headline news updates.

 

Related Reports:

President Trump Spotlights Factory Home Builder in Speech, Proven Promotion, Support of Industry Advancement

Dog Whistles, as Epic Battle for Business Effecting Manufactured Housing, Others Looms

Two Great Laws Already on the Books NOW,  Can Unlock Billion$ Annually for Manufactured Housing Industry Businesse$, Investor$

Container Houses for Under $40,000, Transported by Flatbed, Construction, LifeStyle Videos

July 7th, 2018 No comments

ContainerHousesforUnder40KTransportedbyFlatbedConstructionLifestyleVideosDailyBusinessNewsPrefabManufacturedHousingIndustryMHProNews

The two videos below have well over 2 million views between them.

 

Compare that to all of the Manufactured Housing Institute (MHI) Videos combined, and it’s an absolute blowout.

Container housing – at this point – are not as inexpensive on a cost per square foot basis as a manufactured home.

The first video provides a look at how a container is converted into a housing unit.

The second video is a de facto sales pitch. It’s a marketers “romancing” of the “tiny house” type space.

These are just some of the competition for manufactured homes today.

Each of these alternatives could easily be a pivot-point, for those who understand “jiu jitsu.”

But the reality is that if these alternatives gain serious sales, their costs will decline as sales volume rise. That’s the law of supply, demand, and free enterprise.

For industry professionals and investors, these reflections are a reality check. They serve to remind us all that the status quo ought to be rejected, and growth-oriented approaches should be selected.

Yurts – Americans Hunt for an Affordable, Single-Sectional Manufactured Home Alternative

The Rollohome report is a reminder of just how rapidly new production can be brought on-line, and sales can be ramped up.

Rollohome, Creating 60,000 Factory-Built Homes in 2 Years

And the Genz report is a deep dive that reveals from a third party look at just how much the industry ought to be bragging, instead of lagging.

“Why Advocates Need to Rethink Manufactured Home Quality,” Harvard, GSE, Genz, “High Satisfaction”

We Provide, You Decide.” © ## (News, analysis, and commentary.)

(Third party images, content are provided under fair use guidelines.)

Related Reports:

Manufactured Home Shipments, State by State Breakdown, May 2018 Official HUD Data

 

Wheat, Chaff, and the Monday Morning Manufactured Housing Sales, Marketing Meeting

 

Achieving the American Dream, with Quality, Appealing, Affordable Home Ownership

 

Manufactured Housing Program Review Addressed by HUD Secretary Carson during Oversight Hearing

 

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3) Marketing, Web, Video, Consulting, Recruiting and Training Resources

SoheylaKovachDailyBusinessNewsMHProNewsMHLivingNewsSubmitted by Soheyla Kovach to the Daily Business News for MHProNews.com. Soheyla is a managing member of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com.

POTUS Trump Announces SoftBank Boosting U.S. Investments by Billions, Details, Plus MH Market Updates

June 29th, 2018 Comments off

CNNmoney6.29.2018ManufacturedHomeStocksMarketsReportsMHProNewsSoftBank is the world’s largest private equity fund, and is the driving force behind the new Foxconn manufacturing plant that’s now underway in Wisconsin. They have factory-built-housing connections – some right here in the U.S. President Trump announced that tens of billions in more investments are coming from SoftBank to the U.S.  Added details will be our featured report this evening.

If you’re new, already hooked on our new spotlight feature – or are ready to get the MH professional fever – our headline reports are found further below, just beyond the Manufactured Housing Composite Value for today.

 

The evolving Daily Business News market report sets the manufactured home industry’s stocks in the broader context of the overall markets.

Part of this unique feature provides headlines – from both sides of the left-right media divide – that saves readers time, while underscoring topics that may be moving investors, which in turn move the markets.

Readers say this is also a useful quick-review tool that saves researchers time in getting a handle of the manufactured housing industry, through the lens of publicly-traded stocks connected with the manufactured home industry.

MH “Industry News, Tips and Views, Pros Can Use.” ©

ICYMI – for those not familiar with the “Full Measure,” ‘left-right’ media chart, please click here. 

Selected headlines and bullets from CNN Money:

  • Companies that want out of new steel tariffs describe a nightmare
  • Costco: America’s favorite store that everyone forgets about
  • Nike’s American sales grow for the first time in a year
  • Why Pepsi made ‘Uncle Drew’ into a movie
  • China opens up more of its economy to foreign companies
  • Why Netflix is dominating the streaming world
  • BBC apologizes to underpaid editor. She gives her settlement cash to charity.
  • Lessons you can learn in business school that aren’t taught in class
  • Are your credit card perks shrinking?
  • How can I simplify my retirement investments?
  • California just passed the strictest online privacy law in the country
  • Despite lessons from the past, American cities are optimistic for 2026 World Cup
  • Australia picks BAE Systems for $26 billion warship deal
  • The US-China trade war will spill into other Asian economies
  • Sharp cancels $1.8 billion share sale over trade tensions
  • Xiaomi’s shrinking IPO
  • Amazon could radically change how you get prescriptions
  • H&M needs to offload $4 billion in unsold clothes
  • Instagram Stories is now twice as popular as Snapchat
  • Hedge fund billionaire to Murdoch: Give Comcast a chance
  • Deutsche Bank flunks Fed stress test and 3 other banks get flagged
  • Oil prices spike 13% in a week. What the heck is going on?
  • Toys ‘R’ US will close its last US stores today
  • Why fast food chains like to sell you donut fries and chicken rings
  • Chipotle CEO: It could take three years for new menu items to roll out nationally
  • Foxconn breaking ground on Wisconsin plant
  • Growing pains across America’s biggest oilfield
  • Amazon wants you to start a business to deliver its packages
  • Amazon just bought itself a pharmacy
  • Where’s ZTE? Execs go AWOL at China’s big smartphone fair
  • ‘Closed-minded and ill-informed’: Huawei exec blasts US lawmakers
  • China slashes tariffs for 5 Asian countries as US trade fight escalates

Selected headlines and bullets from Fox Business:

  • IRS debuts postcard-size 1040 form
  • Nike shares run to new record
  • Stocks jump on final trading day of 2Q
  • Move over OPEC, America is the new king of oil
  • Trump says second phase of tax cuts will target middle class ‘even more’
  • GM warns on car tariffs: Customers will feel impact
  • Ford fires back after Tesla’s Elon Musk calls it a ‘morgue’
  • LeBron James to become free agent: report
  • The business that’s trying to stop the truck driver shortage
  • Ivanka Trump says she advised her dad on immigration crisis
  • GOP has the advantage in nation’s top 3 electoral issues: Varney
  • Adidas data breach: US customers had contact information, usernames exposed
  • 18 minimum wage hikes set to take effect July 1
  • Guinness set to open first US brewery in 64 years
  • This billionaire claims he can make illnesses ‘optional’
  • Ivanka Trump says she stays above the fray, will absorb blows from haters
  • The first daughter says it is an ‘extraordinary privilege’ to serve the country.
  • Investors Selling Bitcoin and Fleeing Coinbase
  • Most Banks Are Increasing Their Capital Returns — but Not Goldman Sachs and Morgan Stanley
  • The top 10 songs and albums on the iTunes Store
  • Report: Oil line makes nearly 400 Michigan water crossings

 

Today’s markets and stocks, at the closing bell…

9MarketIndicatorsYahooFinance6.29.2018DailyBusinessNeawsManufacturedHousingIndustryStocksMarketsReportsDataMHProNews

 

Manufactured Housing Composite Value (MHCV)

YahooFinanceManufacturedHousingCompValue6.29.2018DailyBusinessNewsStocksMarketsDataReportsMHProNews

 

Today’s Big Movers

For all the scores and highlights on tracked manufactured home connected stocks today, see thBloomberg graphic, posted below.

Today’s MH Market Spotlight Report –

BreakingGroundFoxconnWisconsinManufacturedHousingINdustryDailyBusinessNewsMHProNews

With President Trump in attendance, electronics manufacturer Foxconn broke ground yesterday on a huge new plant in Mount Pleasant, Wisconsin. Once fully operational, the 20 million square foot campus will employ 13,000 American workers,” said the White House press room to MHProNews.

U.S. President Donald Trump said on Thursday SoftBank Group Corp Chief Executive Masayoshi Son is increasing his investment in the United States to $72 billion, significantly more than the $50 billion he had previously pledged

His $50 billion turned out to be $72 billion so far, he’s not finished yet,” President Trump said, without providing details.

In 2016, Son pledged to invest $50 billion dollars and create 50,000 jobs in the United States after meeting then President-Elect Trump.


I couldn’t have decided such a thing before this new President,” Son said of that decision on Thursday.

POTUSTrumpAnnouncesSoftBankBoostingUSInvestmentsByBillionsPLusMHMarketUpdates
SoftBank Group and its Vision Fund, the world’s largest private equity fund which in May last year raised over $93 billion, has made many of its investments in U.S. technology firms including ride-hailing firm Uber Technologies Inc and share-office space firm WeWork.

SoftBank is a key player in factory-built-housing producer Katerra.  A special report on Katerra is found, linked below.

Billion Dollar Startup Modular Builder, Using Robotics, Could Soon Rival Clayton Homes’ Total Sales

The new Harvard Joint Center for Housing Studies (JCHS) report indicates that home ownership is going up again, since the Trump Administration has taken their reigns. New investments in factory-built housing obviously are a direct benefit to the builders involved.  Moreover, all investments that boost employment and wages fuels the demand for housing.   The new JCHS is linked below.

Harvard’s Joint Center for Housing Studies 2018 – Affordability, Manufactured Homes, and Modular Housing Report

Bloomberg Closing Ticker for MHProNews…

NOTE: The chart below includes the Canadian stock, ECN, which purchased Triad Financial Services.

NOTE: The chart below covers a number of stocks NOT reflected in the Yahoo MHCV, shown above.

NOTE: Drew changed its name and trading symbol at the end of 2016 to Lippert (LCII).

6.29.2018DailyBusinessNewsManufacturedHousingConnectedMarketReportsBloombergMHProNews

Berkshire Hathaway is the parent company to Clayton Homes21st Mortgage, Vanderbilt Mortgage and other factory built housing industry suppliers.

LCI Industries, Patrick, UFPI and LP all supply manufactured housing.

AMG, CG and TAVFX have investments in manufactured housing related businesses.

Your link to industry praise for our coverage, is found here.

For the examples of our kudos linked above…plus well over 1,000 positive, public comments, we say – “Thank You for your vote of confidence.”

We Provide, You Decide.” © ## (News, analysis and commentary.)

SoheylaKovachDailyBusinessNewsMHProNewsMHLivingNews(Image credits and information are as shown above, and when provided by third parties, are shared under fair use guidelines.)

Submitted by Soheyla Kovach to the Daily Business News for MHProNews.com.

Billion Dollar Startup Modular Builder, Using Robotics, Could Soon Rival Clayton Homes’ Total Sales

June 29th, 2018 Comments off

 

BillionDollarKaterraModularStarupTorRivalClaytonHomesDezeenManufacturedHousingIndustryDailyBusinessNewsMHproNews

Don’t laugh or cry now. But a recent development in the prefab/modular field is poised to disrupt conventional construction, and could signal a wave of big tech money in building that could surprise – and rapidly surpass –  manufactured housing (MH) sales too.  

 

Based in Menlo Park, California, Katerra was started in 2015 by Michael Marks, Jim Davidson and Fritz H Wolff. Combined, the three men have decades of experience in the technology, manufacturing, real estate and private equity industries. In 2007, Marks served as the interim CEO at Tesla,” said Dezeen.

 

KaterraOurProductsInteriorPictureLogoModularManufacturedHouisngIndustryDailyBusinessNewsMHProNews

Credit, Katerra website.

Menlo Park is part of famed Silicon Valley, where tech giants – and their billions in cash – hang their hats.

KaterraLogoWhiteBoardVideoStillMovingHOusingByAirSeaTruckTrainModularManufacturedHousingDailyBusinessNewsMHProNews

See their Katerra video, posted below.

As MHProNews recently reported, hundreds of billions are pouring into the U.S., looking for places to invest. Readers can circle back to the following and other  linked reports below. But the short story is that mountains of capital from the tax cuts are being attracted into the U.S.

Billions in American Cash Flowing Back to U.S., Repartition Yields Capital for Manufactured Housing or Other Projects

Dina Bass in Bloomberg Business Week is the latest media outlet to ‘share the love’ with Katerra. But Bloomberg is far from alone, as this report will spotlight. 

Bass says, “Katerra has raised $1 billion and is combining with its Indian counterpart,” and their headline proclaimed – “The Modular-Home Maker That Could Make Housing Cheaper.” 

In a little over three years, Katerra has raised more than $1 billion in venture capital, led by SoftBank Group Corp.’s Vision Fund, and says it’s collected close to $3 billion in bookings,” stated Bass’ recent report.

Almost everywhere you look, there’s money to be saved,” says Katerra Chairman Michael Marks, adding that he hopes to have revenue of about $15 billion in five years. “It’s so inefficient in so many ways, it kind of takes your breath away.” 

Mark’s is talking about the inefficiencies in housing. Recall the similar thoughts from Blokable? You can read that emerging tech/prefab report later, from the link below.

Blokable – Making “Housing As Easy as Ordering A Car”

 

Katerra’s website states, “Our first factory in Phoenix began production in early 2017 and Katerra has plans to further expand our manufacturing reach in the near future.”

 

The unicorn startup states, “Katerra factory capabilities include:

         Advanced manufacturing lines and production systems, with machinery from leading equipment suppliers

         Direct link to our SAP enterprise resource planning system

         Direct link to product and project engineering, enabling complete BIM to FIM production 

         Co-location with our warehouses for easy kitting and delivery

         Strategic location near rail and shipping ports

         Product showrooms

         R&D labs  

 

The Katerra Advantage”

We aggregate demand to offer economies of scale on material pricing not previously available to individual customers and projects,” their website says. MH or modular housing industry professionals and investors know, of course, that’s a standard kind of statement for any factory home builder.

 

Watch as one of the their “robots,” a computer connected automated system, does its work.

 

But it isn’t just what they are doing now. Rather – with vision, moxie, and plenty of capital to back them – what’s next? Katerra touts a “one stop shop” with “quality” at their core.

 KaterraModularLogoMultiFamilyComplexModularManufacturedHousingIndustryDailyBusinessNewsMHproNews

KEF Infra and Katerra Join Hands,” said a June 21, 2018 press release to the Daily Business News on MHProNews.  “India and Silicon Valley Companies Merge to Advance Construction Evolution on Global Scale.”

It is precisely the kind of development that the MHProNews trade media site has been saying for years is poised to occur.

Well, now, it’s happening. How rapidly will it disrupt site building?  

Could it likewise disrupt HUD Code manufactured housing in the near term? 

Time will tell, but with their eyes on billions in business, they are essentially claiming they could soon rival roughly half the total business volume of all of manufactured housing.  

That would make them the current size of the HUD Code manufactured housing industry giant, Clayton Homes. 

 

Back to Their Release…

Founded in 2014, KEF Infra utilizes robotics and automation in its advanced manufacturing operations to deliver high quality building projects more quickly and efficiently.” 

Katerra employs more than 2,000 people with operational factories in Greater Phoenix, Arizona and Shanghai, China, as well as two more U.S. factories in development,” stated their release to MHProNews. “After the merger, there will be 20 offices worldwide and 3,400 employees.”

We are thrilled to merge with KEF Infra, a company that is truly a disruptor,” said Michael Marks, chairman and co-founder of Katerra, to MHProNews. “It’s incredible to discover a team so aligned with our values and vision.” 

I am very excited by the prospects of this strategic alliance,” said Faizal Kottikollon, founder and chairman of KEF Infra. “We look forward to breaking new ground with such a like-minded team.” 

Forbes and the New York Times are among the many mainstream media outlets reporting on how Katerra is poised to upend construction. 

Fortune quipped, “Katerra exits stealth with new funding.”  

Environmentally focused Treehugger stated, “We’ve been watching Katerra, the ambitious construction startup that calls itself a technology startup. Their pitch: 

Katerra is bringing fresh minds and tools to the world of architecture and construction. We are applying systems approaches to remove unnecessary time and costs from building development, design, and construction. With the latest technology at our fingertips, efficiency no longer has to come at the expense of quality or sustainability.”

While their target market today is larger multifamily projects, what’s going to keep them from going into single family home building, where the new Harvard JCHS study says there is much higher total potential?

Harvard’s Joint Center for Housing Studies 2018 – Affordability, Manufactured Homes, and Modular Housing Report

 

While the Manufactured Housing Association for Regulatory Reform (MHARR) has tried for years to open up multifamily for the HUD Code, Katerra are taking that market by storm. The MHARR related report can be read later for more insights.

Manufactured Housing Program Review Addressed by HUD Secretary Carson during Oversight Hearing

  

Has Berkshire’s Clayton Strategic Moat Cost MHVille tens of Billions Annually?  

Has the strategic Moat-building, and finance game playing by Berkshire Hathaway, with their puppet association – the Manufactured Housing Institute – put the potential future of HUD Code manufactured housing at risk?

While MHARR and MHProNews has raised the alarms about the debatably harmful impacts from unfairly “rigged” capitalism and allegedly monopolistic practices, isn’t it up to industry professionals to wake up, smell the coffee, and see the truth about what’s going on? And then, take appropriate action? 

Don’t forget, Katerra is far from alone.  

Billion-dollar Revolution PreCrafted Properties, 3D printed housing, containers ordered  from huge Amazon, and others foreign and domestic operations are poised to target the trillion dollar annual U.S. housing market.

Factory-Crafted Home Living, Reimagined – “The Art Park” vs. MHCs – Interview with Robbie Antonio, Founder of Unicorn Revolution Precrafted Homes

Meanwhile, MHI arguably is essentially telling its non-big-boy members, don’t worry, be happy, pay no attention to those voices of concern, and ignore that new post-production association forming over there.’

New Manufactured Home Industry National Association Related Statements

As an MHI only member HUD Code builder recently told MHProNews, how much more consolidation can Clayton or the other big two HUD Code builders want to get?

 

ClaytonHomesSkylineChampionCavcoIndustriesBalanceofIndustryManufacturedHousingIndustryConsolidationGraphicPieChartMHProNews

Aren’t the trend lines since Berkshire Hathaway entered the manufactured housing industry clear? To learn more, read related reports, and see the Warren Buffett and Kevin Clayton videos. Graphic by MHProNews, using information provided by each corporation, or named entities.

 

Independent builders, retailers, communities, advocates, and investors, is this your wake up call? See the related reports, linked below, for more details. “We Provide, You Decide.”  © ## (News, analysis, and commentary.)

(Third party images, and content are provided under fair use guidelines.)

Related Reports:

Smoking Gun 3 – Warren Buffett, Kevin Clayton, Clayton Homes, 21st Mortgage Corp Tim Williams – Manufactured Home Lending, Sales Grab?

Clayton Homes, Top 25 Manufactured Housing Industry Report, Trend Lines

Progressive “Nation” Reports on Monopolies Cites Buffett, Clayton, Others – MH Industry Impact?

Only 3 Options – the Elephant in the Room

Best Warren Buffett, Kevin Clayton, Clayton Homes, Berkshire Hathaway Annual Meeting, Competition, and “the Moat” Video Collection

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Harvard’s Joint Center for Housing Studies 2018 – Affordability, Manufactured Homes, and Modular Housing Report

June 28th, 2018 Comments off

HarvardJointCenterForHousingStudiesLogoStateofNation'sHousing2018ManufacturedHomesDailyBusinessNewsMHproNews

Since 1988, our annual State of the Nation’s Housing report has provided an overview of housing market conditions in the U.S.,” said Harvard University’s Joint Center for Housing Studies (JCHS) to the Daily Business News via a press release.

 

As we mark the 30th anniversary, this year’s report not only examines recent trends, but assesses whether and how key metrics have changed over the last three decades and serves as a yardstick to measure whether or not the nation has met its goal of producing decent and affordable homes for all,” said the JCHS statement.

 

JCHS’ Executive Summary

The inaugural State of the Nation’s Housing report in 1988 noted that the majority of Americans were well housed and some conditions have improved since then. More than 40 million units have been built over the past three decades, accommodating 27 million new households, replacing older homes, and improving the quality of the nation’s housing stock,” said the Harvard researchers’ statement.

Homeownership rates among young adults are even lower than in 1988, and the share of cost-burdened renters is significantly higher, with almost half of all renters paying more than 30 percent of their income for housing,” said the 2018 JCHS report.

Soaring housing costs are largely to blame. The national median rent rose 20 percent faster than overall inflation between 1990 and 2016 and the median home price rose 41 percent faster,” per the JCHS.  “While better housing quality accounts for some of the increased costs, higher costs for building materials and labor, limited productivity gains, increased land costs, new regulatory barriers, and growing income inequality all played major roles as well.”

To help busy professionals manage the length of the 44 page report – and keep it as relevant and useful as possible for manufactured housing industry professionals, investors, and researchers – what will follow are a series of unedited ‘pull quotes’ from the JCHS report.

Fair warning. Modular housing gets very little attention, essentially a modest mention.

HUD Code manufactured housing fares significantly better. Still, there’s not a lot of details in what follows that a well informed MHProNews reader wouldn’t already know.

So why bother?

 

4 Reasons for Factory-Built Home Pros to Read This JCHS Report:

The above noted, why read this? Simply because it’s a million-dollar road map for a variety of reasons, but let’s note 4 of them:

 

  • As noted, the university level data is like a road map – a gold-mine of the opportunities – for manufactured housing or other factory-crafted housing professionals to explore. Almost every page is a description of possible opportunities for the industry.
  • The State of the Nation’s Housing 2018 gives an independent review of data compiled by a respected institution – Harvard – has been doing for 3 decades. Rephrased, it has credibility.
  • It largely confirms or clarifies dozens of reports previously shared on MHProNews from a variety of other sources.
  • It will be an anchor for several planned reports by MHProNews that manufactured housing advocates, investors and others will be able to rely upon.

What will follow are pull quotes, without commentary. The headings will often be our phrasing, not JCHS’. While the Daily Business News will skip some sections, the meatiest material for our audience is covered in the quotated statements below.

The 2018 JCHS entire report, complete with an array of graphics and charts, will be provided at the end of this article.  We’ll conclude with a hyper-brief analysis of our key takeaway from the document. Let’s dive in.

StateoftheNationsHousing2018HarvardJCHSReportCoverLogoManufacturedModularHousingIndustryDailyBusinessNewsMHProNews

Housing Costs

“Another factor is the low level of single-family construction. Despite six consecutive years of increases, single-family starts stood at just 849,000 units in 2017, well below the long-run annual average of 1.1 million. Indeed, only 610,000 single-family homes were added to the stock annually in 2008–2017…

Along with limited land, respondents to builder surveys cite rising input costs as adding to the difficulty of constructing entry-level homes. As a result, the share of smaller homes (under 1,800 square feet) built each year fell from 50 percent in 1988 to 36 percent in 2000 to 22 percent in 2017. Of this latest drop, 9 percentage points occurred in 2010–2013 alone…

InventoriesofSingleFamilyHousingDown2017HarvardJCHS2018ManufacturedModularHOusingDailyBusinessNewsMHproNews

Unlike single-family homebuilding, multifamily construction ramped up quickly after the crash as rental demand surged. From a low of 109,000 units in 2009, construction of multifamily units peaked at 397,000 starts in 2015 and accounted for more than half the gains in housing starts over that period. However, the multifamily construction wave is now moderating, with starts down 1 percent in 2016 and 10 percent in 2017…

This slowdown comes in response to both weaker overall rental demand and increasing slack at the upper end of the market…

Indeed, the cumulative effect of strong growth in housing costs and modest gains in household incomes has left nearly half of today’s renters with cost burdens, including a quarter with severe burdens. The rising cost of homes for sale also raises downpayment and closing costs, making it more difficult for individuals and families to make the transition to owning…

TotalHousingStarts2017SingleFamilyMultieFamilyHOusingSalesHarvardJCHS2018ManufacturedModularHOusingIndustryDailyBUisnessNewsMHproNews

National efforts are necessary to close the affordability gap. Housing policymakers have many opportunities to address the cost side of the equation, including the increasing size and quality of homes; lack of productivity improvements in the residential construction sector; escalating costs of labor, building materials, and land; and barriers created by a complex and restrictive regulatory system. However, tackling this broad mix of conditions will require collaboration of the public, private, and nonprofit sectors in a comprehensive strategy that fosters innovation in the design, construction, financing, and regulation of housing…

But even if successful, these efforts will not produce decent, afford- able homes for the millions of households that simply cannot pay enough to cover the costs of producing that housing. For these families and individuals, there will always be a need for public subsidies. The federal government’s failure to respond adequately to this large and growing challenge puts millions of households at risk of housing instability and the threats it poses to basic health and safety. Many state and local governments are doing their part to expand assistance, but a more robust federal response is essential to any meaningful progress in combatting the nation’s housing affordability crisis…”

 

HighLevelsMultiFamilyHousingHarvardJCHSManufacturedModularHOusingIndustryDailyBUsinessNewsMHProNews

Page 8 Before Manufactured Housing Gets Mentioned

(Bold Added for Emphasis. one editorial note is made)

“Nonetheless, entry-level housing still accounts for a small share of new construction. Only 163,000 small single-family homes were completed in 2016, or 22 percent of single-family construction— down significantly from the 33 percent share averaged in 1999–2007. Moreover, manufactured home shipments totaled just 93,000 units in 2017, far below the 291,000 annual average in the 1990s and even the 137,000 annual average in the 2000s

ConstructionofModestsizedHomesRemainsLimitedHarvardJCHS2018ManufacturedModularHousingDailyBuisnessNewsMHPronEws

The only JCHS graphic that specifically mentions manufactured housing.

“Modest-sized homes are considerably more affordable for first-time and middle-market buyers. According to the Survey of Construction, the median price for a small home sold in 2016 was $191,700. The average sales price for a new manufactured home in 2017 was even lower, at $72,000. By comparison, the median price for all other single-family homes was $324,700 in 2016…

“With few additions of smaller units, most modestly priced homes are found in the existing housing stock. Indeed, small homes make up nearly half of single-family homes. In 2015, there were 37.3 million single-family homes under 1,800 square feet. The stock of small homes is generally older, with nearly two-thirds (65 percent) built before 1980 compared with 43 percent of larger homes…”

Manufactured housing is prevalent primarily in the South, where some 58 percent of the 6.6 million units nationwide are located. Another 21 percent are in the West, 14 percent in the Midwest, and just 7 percent in the Northeast. Nearly two-thirds of manufactured housing shipments between 2009 and 2017 were also to the South.”

Daily Business News Notice: A more common figure used for all pre-HUD Code and post-HUD Code MH is roughly 8.8 million units.  What possibly explains the difference?  Because about 1 out of 5 MH are mobile homes, not manufactured homes.  We’ve reached out to Harvard and ask for that number to be clarified, and will update once received.

As a result, manufactured homes make up 9 percent of the total housing stock in the South, with especially large shares in South Carolina (16 percent) and in West Virginia and Mississippi (14 percent each). While the share in other regions is only 4 percent, a few states also have high concentrations of manufactured housing, including New Mexico (17 percent) and Wyoming (13 percent). Manufactured housing also provides 14 percent of homes in non-metro communities, more than double the share in the country as a whole.”

YoungAdultsFarLessLikelyMoveThanPriorGenerationsHarvardJCHS2018ManufacturedHousingIndustryDailyBUisnessNewsMHproNEws

4 Prime Factors Hamper Housing Growth

“First is the shortage of skilled workers. In a 2017 survey of homebuilders, 82 percent of respondents cited the cost and availability of labor as a significant problem…

Second, the cost of building materials has risen…”

Third, developed land has become scarcer. Metrostudy data for 98 metro areas indicate that the number of vacant developed lots declined from 1.26 million in 2008 to just 802,000 in 2017…

Finally, local zoning and other land use regulations can reduce the amount of new construction by constraining the type and density of new housing allowed…

MillenialsMovingtoSomeManufuredHomeFriendlyStatesHarvardJCHS2018ManufacturedHousingIndustryDailyBUisnessNewsMHproNEws

 

Modular housing, constructed in factory conditions before being transported and assembled on site, could provide at least part of the answer. Including the value of land, the median price for a new modular unit was $217,200 in 2016—nearly $90,000 less than for a new site-built home. To date, however, homebuilders have been slow to adopt this innovation, with only 15,000 modular homes added in 2016. Indeed, modular housing has never accounted for more than 4 percent of single-family construction in the United States. By comparison, modular housing accounts for 9 percent of new homes in Germany, 12–16 percent in Japan, and 20 percent in the Netherlands.”

HomeOwnershipRates1983to2017RisingIn2017HarvardJCHSManufacturedModularHomeIndustryDailyBuisnessNewsMHproNews

It is interesting to note that the rate of home ownership began to rise during the time after the 2016 election. Several confidence surveys have reflected growing consumer and business confidence, which has yielded more home purchases vs. renting.

 

Housing – The Outlook

“The housing sector faces significant challenges in the short term. Labor shortages, rising materials costs, limited land availability, and land-use regulations are all holding down growth in new residential construction. Meanwhile, inventories of existing homes for sale are at all-time lows, pushing up prices and making homebuying more difficult, especially for low- and moderate-income households…

With its oldest members now in their late 20s and early 30s, the millennial generation is forming new households in greater numbers and moving to different states in search of opportunity. At the same time, nearly 10,000 baby boomers turn 65 every day, raising the average age of US households. Although wealth is growing, homeowners and those at the top have captured most of the gains, and millions of households have little or no wealth. Going forward, immigration will become an increasingly large, albeit unpredictable, source of population growth and therefore housing demand…”

HarvardJCHS2018AffordabilityByMonthlyPaymentsByMetroAreaManufacturedHousingIndustryDailybuisnessNewsMHproNews

Immigration and Housing

“According to Census Bureau data, the number of foreign- born households more than doubled from 7.7 million in 1990 to 17.8 million in 2016, accounting for more than a third of the growth in households over that time…”

 

Housing and Minorities

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“Minorities made up half of the nation’s low-wealth households in 2016, up from 39 percent in 1995. They also accounted for more than three-quarters of the growth in low-wealth households between 1995 and 2016. Indeed, as the number of minority house- holds increased over this long span, the shares with low wealth remained consistently high at 52 percent for blacks, 49 percent for Hispanics, and 30 percent for Asians and other minorities. Meanwhile, the share among whites also remained steady at a relatively low 22 percent…”

 

Interstate Migration

“Resuming past trends, total net domestic migration to the Southeastern states of Florida, Georgia, and the Carolinas rebound- ed from a low of 86,000 in 2009 to 317,000 in 2017. Meanwhile, domestic outflows from the Northeast and Midwest continued to increase in 2017. The three states with the largest net domestic outflows—California, Illinois, and New York—lost 443,000 residents to domestic migration in 2017, more than double the 207,000 net losses in 2011…”

 

Homeownership Rates

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“The national homeownership rate ticked up in 2017 for the first time in 13 years, buoyed by growth in the number of homeowner households. Despite the ongoing rise in home prices, low interest rates have helped to keep monthly housing costs relatively affordable for new homeowners. Still, the upward climb of interest rates, limited inventory of homes for sale, widespread increases in student loan debt, and insufficient savings for downpayments raise important concerns about the ability of many potential buyers to access homeownership…”

 

 

Rising Prices but Relative Affordability

“Continuing a steady upward climb, the nominal median sales price of existing homes increased from $233,800 in 2016 to $247,200 in 2017…

 

In the high-cost Los Angeles market, for example, a household with the area median income would be able to afford the monthly mortgage payments on only 11 percent of recently sold homes. And because these homes include studio apartments and other small units suitable for only one or two people, the affordable options for families are even more limited. By contrast, even a low- income (bottom-quartile) household in Pittsburgh would be able to afford 26 percent of recently sold homes. Such dramatic differences in affordability contribute to large disparities in homeownership across metro areas. Of the nation’s 50 largest metros, Pittsburgh has the highest homeownership rate of 70 percent, while Los Angeles has the lowest rate of 48 percent…”

 RealHomePricesRisingsince2000HarvardJCHS2018manufacturedmodularhousingIndustryDailyBusinessNewsMhpronEws

Financing

“The FHA and VA shares of home purchase loan originations have also leveled out in recent years following a significant jump during the foreclosure crisis (Figure 24). Indeed, even as the number of 1–4 unit, first-lien, owner-occupied mortgage originations rose from 2.7 million in 2013 to 3.5 million in 2016, the FHA share remained near 20–25 percent. While down sharply from the high of 41 percent in 2009, the FHA share is still well above the 6 percent low in 2005. The VA share held at 10 percent in 2016, up from 2 percent in 2005. Meanwhile, the conventional share of originations stayed close to 60 percent…”

harvardJCHS2018LowestIncomeRentersOutnumbersupplyTheyCanAffordManufacturedHOusingIndustryDailyBuisnessNewsMHproNews

As a reminder to MHProNews readers, the GAO reported that manufactured housing is less costly than typical rent, so this type of data, while troubling for the nation, is an opportunity for manufactured housing industry professionals and investors.

Rent vs. Own

“…However, survey evidence points to continued strong interest in homeowning. The 2018 Survey of Consumer Expectations found that 67 percent of renters would prefer or strongly prefer to own homes assuming they had the financial resources to do so. Only 19 percent would prefer or strongly prefer to rent. Moreover, 61 percent of renters think buying a home in their ZIP code today is a somewhat or very good investment, and just 12 percent believe it is a somewhat or very bad investment…

The Survey of Consumer Finances shows that the median net worth of renters was just $5,000 in 2016, about the same in real terms as in both 1995 and 2007. Moreover, fewer than one in three renters had more than $10,000 in financial assets, and only 21 percent had more than $25,000. As a result, only a small share would be able to cover even a 3.5 percent downpayment and 2 percent closing costs on a median- priced home, which amounted to $13,596 in 2016…”

 RentalHousingIncrasesModerateHarvardJCHManufacturedModularHOusingIndustryDailyBUisnessNewsMHproNews

Rentals

“There are signs that the rental market is cooling, although primarily at the upper end. The number of multifamily starts declined slightly over the past year, and expanding supplies of new luxury apartments pushed up vacancy rates, helping to slow rent growth. Although the number of high-income renters is still growing, lower rentership rates among key groups—particularly younger households—may indicate a turn toward homeownership. Meanwhile, the supply of rentals affordable to the nation’s lowest- income households continues to shrink…

The Survey of Construction indicates that nearly half of the rentals completed in 2016 were in buildings with 50 or more units, compared with just 13 percent in 1999. Most other new units were in buildings with at least five apart- ments. In addition, 86 percent of new apartments in 2016 were in properties with swimming pools, up from 69 percent in 1990. Some 89 percent of new units in 2016 also had in-unit laundry services, significantly higher than the 61 percent share of existing units with this amenity…

Both rising construction costs and added amenities have pushed up asking rents. The nominal asking rent for new apartments increased average rents for new units in certain major metros (including Chicago, Miami, and Washington, DC) were $2,000 or higher.”

HarvardJCHS2018appreciationofRentalPropertiesVsSingleFamilyHouisngDailyBusinessNewsMHproNEws

Several sources have pointed to appreciation in manufactured housing too, but that isn’t addressed in this report.  There is a marked rise in the value of manufactured home land-lease communities in recent years, but that is also not mentioned in this report..

Easing at the High End of Rentals

“The national vacancy rate for all rental units averaged 7.2 percent in the year ending in the first quarter of 2018, up 0.3 percentage point from a year earlier. But the rate for rental units built since 2010, as measured by the Housing Vacancy Survey, hit 21 percent in 2017. While not unprecedented compared with the rates for similarly new units in 2007 and 2008, this high vacancy rate far exceeds the 15 percent reported a year earlier…”

 

Shortfall in Lower Cost Rentals

“The nation’s supply of low-cost rental housing shrank significantly after the Great Recession and has remained essentially unchanged since 2015. A National Low Income Housing Coalition study found that for every 100 extremely low-income renters, only 35 rental units were affordable and available in 2016—a nationwide shortfall of more than 7.2 million units (Figure 29). Conditions for very low-income renter households were little better, with 56 affordable and available rentals per 100 households…”

 

Housing Cost Burdens

“More than 38 million US households have housing cost burdens, leaving little income left to pay for food, healthcare, and other basic necessities. As it is, federal housing assistance reaches only a fraction of the large and growing number of low-income households in need. Between the shortage of subsidized housing and the ongoing losses of low-cost rentals through market forces, low-income households have increasingly few housing options. Meanwhile, the rising incidence and intensity of natural disasters pose new threats to the housing stocks of entire communities…

About a third of the households in metropolitan areas struggle to find affordable housing (Figure 35)…

 

Threats To The Affordable Supply

“The National Low Income Housing Coalition reports that the gap between supply and demand for rental units affordable and avail- able to very low-income households is 7.7 million…”

 

Homelessness

“HUD’s Annual Homeless Assessment Report shows that nearly 554,000 people were living in shelters or on the street on a given night in January 2017…”

 

State and Local Initiatives

“According to the National Low Income Housing Coalition database, about 100 state and local programs provide either tenant-based assistance or capital support for affordable rental housing development…”

 

Housing Losses to Natural Disasters

“The 16 major disaster events in 2017 caused a record-setting $306 billion in damages. These events caused destruction of hundreds of thousands of homes and widespread displacement of households across California, Florida, Puerto Rico, and Texas. In Puerto Rico alone, storms destroyed or severely damaged an estimated 472,000 housing units…

FEMA direct assistance filled some of the gaps for households without flood insur- ance, providing financial help for 1.6 million households…

The rebuilding process has its own challenges. The three states with significant disaster damage last year—California, Florida, and Texas—have large populations of undocumented immigrants, households that are unlikely to apply for assistance in fear of depor- tation. In Puerto Rico, relief is complicated by the fact that much of the housing stock was built without permits or without regard to building codes…

Recovery will no doubt be long…”

 

MHProNews Analysis in Brief

The National Association of Realtors (NAR) Chief Economist Lawrence Yun has noted before that the nation needs some 8.3 million housing units.  What Harvard’s annual report indicates are an array of other facts that point to tens of millions of possible opportunities for forward thinking HUD Code manufactured housing and modular builders.

 

LawrenceYunNARShort8.3MillionHousingUnitsRisingRentsHousingPricesCuredOnlyByMoreBuilding

Collage by MHProNews.

 

Earlier today, in the Manufactured Housing Association for Regulatory Reform (MHARR) noted their request to have multi-family housing units approved by HUD.

Manufactured Housing Program Review Addressed by HUD Secretary Carson during Oversight Hearing

Harvard didn’t in this report look at specific issues such as acceptance, financing, political, zoning, or any other reasons why manufactured housing wasn’t performing better than it is. That said, their report uses correct terminology, and is on balance, respectful of the industry. Harvard’s Eric Belksy has been cited before as saying he expected manufactured housing to surpass conventional housing by 2010.  We know that didn’t happen, some of the debatable reasons why are linked in related reports below.

But the bottom line is this.  There are millions of housing units needed now, and millions more that will be needed in the years ahead.  With the proper approaches, the opportunities are available. With hundreds of billions in capital pouring into the U.S. the best time in about 2 decades to tap those opportunities may be right now.

The entire report is available at this link here.  “We Provide, You Decide.” © ## (News, commentary, and analysis.)

(Third party images, and content are provided under fair use guidelines.)

Related Reports:

Celebrate National Home Ownership Month, with 26 Cool Prefab Cribs, a $1 Billion Dollar Hybrid Mansion, 4 Fun Videos

Evolutionary American Dream, from Tiny Trailer Houses, Mobile Homes, to “Amazing” Modern Manufactured Homes

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Billions in American Cash Flowing Back to U.S., Repartition Yields Capital for Manufactured Housing or Other Projects

June 27th, 2018 Comments off

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Equity LifeStyle Properties (ELS) Chairman Sam Zell and Harvard’s Joint Center for Housing Studies (JCHS) Eric Belsky both agree that capital is crucial in real estate and housing.

 

So, it should be noted that the 2017 tax cut plan which included incentives to repatriate money has already produced billions of dollars flowing back into the U.S.

In fact, federal data reveals the tax cut’s repatriate provisions are already producing record results.

Despite President Trump’s tit-for-tat trade barbs, America’s CEOs are not wasting anytime in taking advantage of his tax reform plan. Over $300 billion was repatriated to the U.S. in the first quarter, according to the Bureau of Economic Analysis (BEA) — the most on record,” said Fox Business on Tuesday.

BEA data, a subset of the U.S. Department of Commerce, confirms that report.

U.S. firms that used to build their factories overseas in order to avoid U.S. taxes, they stopped in their tracks because of the tax bill, they are bringing all the money home,” said Kevin Hassett, chair of the president’s Council of Economic Advisers, during an interview on Varney & Co.

The BEA notes the main driver of the repatriation surge is that companies are no longer taxed on foreign earnings when returning the funds to the U.S. “We fixed that really, really stupid thing” said Hassett.

Some $305 Billion returned in Q1 of 2018, per the BEA data to MHProNews. By comparison just $38 billion was repatriated during the same period a year ago. Q1 repatriation yielded some $46 billion in revenue to the U.S. Treasury.

BureauofEconomicAnalysisDeptCommerceWikiManufacturedHousingIndsutryDailyBusinessNewsMHProNews595

Before tax reform was enacted in December 2017, U.S. companies had an estimated $2.6 trillion parked in overseas accounts, as tracked by the United States Public Interest Research Group (USPIRG).

USPIRGOffshoreShellGamesManufacturedHousingIndustryDailyBusinessNewsMHProNEws

The more complex tax laws are, the more they favor big companies that can afford tax experts. More work is needed on the federal tax code, but the 2017 Tax Cut and Jobs Act was a bold step in the right direction that is already bearing good fruit. It is yielded capital that can be tapped by the industry, given the right approaches during the affordable housing crisis.

These facts confirm prior reports on the Daily Business News on the inflow of capital into the U.S.

The video with Warren Buffett is few a few years ago, where he tells CNN why repatriation was a bad idea. Buffett speaks for himself.  The questions to industry professionals could be, why would the Oracle of Omaha argue for less capital coming into the U.S.? Was it to maintain his capital advantage in the marketplace, including the manufactured housing market?

Note the Oct 5, 2011 CNN video is in a similar timeframe to the interview with Kevin Clayton, and their discussion of strategic moats, and the advantages that gives their company.  For videos by Buffett and Clayton, click the link below.

Best Warren Buffett, Kevin Clayton, Clayton Homes, Berkshire Hathaway Annual Meeting, Competition, and “the Moat” Video Collection

Meanwhile, the more recent video interview with Andy Pudzer explains some of the many advantages that the president’s tax cut and repatriation plan impact capital investments.

There has already been one new manufactured housing start up announced since the tax cut bill.  Others are expanding too.  But this need not be limited to production centers. What about new communities, more retailers, developers, or more capital for private lenders?

The BEA keeps the names of corporations and sums being repatriated by company confidential.  But the latest data certainly appears to confirm that American CEOs are sticking to their pledges to bring more money earned overseas back to the U.S.

Those corporate pledges were given shortly after the tax plan was signed by President Trump in late December 2017.  It is one of the factors that is keeping the U.S. economy moving ahead while others in the world are struggling.

The National Federation of Independent Business (NFIB) – which has some 325,000 members, including hundreds from the manufactured housing industry – recently voiced strong support for making the 2017 Tax Cuts plan permeant.  See related reports, linked below. That’s News Through the Lens of Manufactured Homes, and Factory-Built Housing.” ©  (News, analysis, and commentary.)

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Related Reports:

$100s of Billions Will Pour into U.S. in 2018, How Much of that Capital Will Deploy in Manufactured, PreFab Housing?

Act Now to Make Tax Cuts for Small Business Permeant

 

Citing Tax Reform, Billion$ in More U.S. Investments Coming, MH Industry Impact

 

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Factory-Crafted Home Living, Reimagined – “The Art Park” vs. MHCs – Interview with Robbie Antonio, Founder of Unicorn Revolution Precrafted Homes

June 20th, 2018 Comments off
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Still from the video below. Text, collage by MHProNews.

Housing is a global need, and Asia is the largest market. As the Daily Business News recently reported, U.S. based Hometown America is one of several operations in manufactured housing that has ties to Asia, some of which are deepening.  Hometown’s recently announced deal is valued at nearly ½ a billion dollars.

 

CNBC is a division of NBCUniversal, and their “Managing Asia” program is about the Asia Pacific region, featuring CEOs, entrepreneurs and other business leaders.

Divestopedia defines a unicorn like this, “…a unicorn refers to any tech startup company that reaches a $1 billion dollar market value as determined by private or public investment. The term was originally coined by Aileen Lee, founder of Cowboy Ventures.”

In a release to MHProNews, CNBC’s Christine Tan provided the following transcript of an interview with Robbie Antonio, or Revolution Precrafted, a firm which asserts their focus on “Modern Prefab Homes by World Renowned Architects & Designers.”

Here in the U.S. “trailer parks” evolved into “mobile home parks” of 5 (+/-) decades ago have become what a number of industry professionals today refer to as “land lease communities” or “manufactured home communities.”

Forget all of that for the next few minutes, save as history and background.

Then, consider what Robbie Antonio is doing to bring factory-crafted homes into the future. Note how Antonio is attracting global attention, including well qualified buyers and investors alike.

The project that Tan is asking Antonio about is the one in the video, below.

 

 

Christine Tan: You know Robbie, we’re here at this 150 hectare park at Batulao Artscapes which you call a living Art Park. What can one experience by living here?

prefabhomeinstalledintwodaysaspartofparisshowcreditrobbieantoniodesignbloomrevolution-postedtodailybusinessnewsmhpronewsmhlivingnews

Robbie Antonio. Credit: Design Bloom & Revolution Precrafted Properties.

Robbie Antonio: I’ve seen other art parks around the world and many of them are just museums and you get to see art and then you go back home. Imagine living in it. Imagine living in a David Salle house, Elizabeth de Portzamparc house, and really being surrounded by this magical environment.

C: What is the price point? How cheap can a prefabricated housing be?

R: The house and lot here is less than 50,000 dollars which is about 3 million pesos or so

C: Your family has been in real estate for almost 30 years. You started Revolution Precrafted in 2015 to essentially create a startup for prefab housing. How did you stumble upon the idea?

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R: I come from the real estate world and I’ve been doing this for over 10 years. In New York, I built my own company called Antonio Development where I did a project in the Plaza District, the most sought after area in all of Manhattan, close to Central Park where nothing has been made in 20 years. So when I did that with Mr I.M Pei, it was the first round of residential products I had ever done. At the very early age of 28 I started the idea of positioning buildings in a proper format, came back to Manila and did a flurry of branded towers with fashion companies such as Armani, Missoni and Versace. I did Trump Tower and also projects with Hollywood icons such as Paris Hilton where I did 9 towers with them. In mid-2015, I wanted to do something extremely disruptive. I wanted to be an asset-light, no inventory business and global.

C: So you were tired of the old model?

R: Yes, to begin with, and second I was looking at major unicorns like Airbnb and Uber from miles away and I basically said this to myself: “What do they have in common?” I asked myself this for a straight week. No inventory, asset-light, using technology and truly global.

I feel that I’m a man of the world and I did not want to just do projects here in Asia. I wanted to look at the world as if it were all the same country and I wanted to be global without being asset heavy. Then it just dawned upon me. It was like a Eureka moment, an epiphany in the middle of 2015. I wanted to investigate an industry called the prefab market, a space which allows you to get from Point A to Point B very succinctly.

It’s a means to the end, not the end. The end is to truly be everywhere, ubiquitous, and I wanted to be prevalent and omnipresent in all the regions of the world. I’ve told my team I want to be in 25 different countries this year, 55 by next year, 85 in 2020 and possibly go public then.

C: You’re not worried about cannibalizing your family’s real estate business?

R: Why would you talk about cannibalization when you should be talking about complementary businesses?

C: How so?

R: We’re in Batulao, it’s a 145 hectare development. This specifically is a Century Properties Development, the only 1 I’m doing out of 11 countries and all the master plans we have closed. Case in point you have David Salle’s house there, Elizabeth de Portzamparc’s house here. Most of these developers outsource construction and supplying of construction to an entity anyway so that’s adding value, not cannibalization.

C: So I know it’s your own business but what did your father say when you told him about it?

R: I told him after the fact. I said this is what I’m doing, I’ve been working on this and I’m recently launching this in Miami Art Basel which had just happened a week or 2 weeks before. So I’m very independent, I’ve always been an independent person. To be emancipated and to really feel empowered is something that is integral to my existence.

C: You literally introduced brand to the whole concept of prefabricated housing by listing well known designers like the late Zaha Hadid and Tom Dixon to create these pre-fabricated housing for you. How do you get these high-end well known architects and designers to create something? They’re so used to big budgets, how do you get them to create something at a fraction of the cost? How big a challenge was it?

R: That’s the point. That’s why it was so intriguing for a lot of people and that’s why it was so intriguing for me. I always say in business that if someone’s in, I’m out. So that really means I always want to be a first mover in anything I do, and for this particular case as you just stated a lot of these brands are used to doing mega mansions or mega museums. Jean Nouvel’s did the Louvre Abu Dhabi, a billion dollar project but now we’re doing a Jean Nouvel museum here for not even 0.5% of that. So it was this antithetical rationale and business concept that was intriguing for them.

StillFromRevolutionPrecraftedPropertiesVideoTheArtParkManufacturedHomeLivingNewsMHProNews600x

Collage based upon still from video above.

C: They took it as a challenge?

R: Of course! If you have the foremost brands in design and architecture doing really expensive structures with probably no budgets at all, you get people to think a little bit more. That sets parameters like a mathematical equation and gets people to challenge themselves more.

C: I can understand architects, but you recently just signed on Manny Pacquiao –

R: That was last night, haha.

C: What has boxing got to do with housing?

R: I’m going to do sports cities around the world with him.

C: That’s your latest addition?

R: That was yesterday, he’s our 76th one. I told everyone in my office that I’m going to stop when we hit 100 and take a break.

RevolutionPreCraftedYoungGunsLegendsRobbieAntonioTrump-ModularPreFabHomeMHLivingNewDailyBusinessNews

MHLivingNews and MHProNews were the first in the manufactured home space to spotlight this rising star in prefab housing. Note the thinking of Robbie is similar to that of builder-businessman Donald Trump – “I like thinking big. If you are going to be thinking anyway, you might as well think big.” https://www.manufacturedhomelivingnews.com/young-guns-legends-robbie-antonio-eric-trump-high-end-designer-prefabs-class-for-the-masses-revolution-pre-crafted-properties/

C: How did you convince Manny Pacquiao to sign with you?

R: First we’re the only branded housing company in the world, bar none. So ultimately it’s a choice of doing it with some entity that has not done it or it’s not within their business plan, or doesn’t understand the full ethos of high impact design and doing it at an accessible price point.

He’s a humanitarian and that’s what I like about him. So we’re talking about creating sports cities and fitness centres under his name and his design, possibly even his land and really trying to change his neighborhood. That’s what I found also enthralling about the entire conversation, and we’re going to go after it. I don’t go for brands just because they’re famous; I go for people who are relevant.

C: So, you’ve got housing, you’ve got this, and you’ve got sports cities and sport complexes, what’s next?

R: At Revolution we’re doing multiple products in multiple geographies. I want to be in 6 regions in the world pretty much everywhere in the world. We’ve hit 4, definitely Asia with our projects in Myanmar, Philippines and Indonesia. For Dubai, our mega project in 9 islands in the world, we’re a foreign group doing something there where not even locals have actually announced so it has been something really interesting to us. I just came from Bahrain where I spoke and we’re definitely going to enter that market as well.

C: But what’s next? Office towers? Skyscrapers? What’s next for Robbie Antonio?

R: We’re going to go vertical, and we’re going to do prefab condominiums and prefab hotels later on this year. We’re actually going to do an Art Hotel here which is still relevant to the art concept. Aside from just creating products, we also engender creative and ingenious concepts for different master plans.

C: Revolution became profitable barely a year after it opened for business.

R: Yeah, the first quarter actually.

C: Did you ever think you would be so successful so quickly? You’re actually the Philippines’ first unicorn startup

R: I mean, I knew we were going to be successful, but I didn’t know the speed with which we were going to achieve this. A lot of these other mega startups, so-called unicorns have unbelievable valuations which raise a billion dollars so on and so forth, but I wanted to stay true to the integrity of the firm to be an asset light business model and to be everywhere.

C: You’ve signed up more than 7 billion dollars in deals in countries like Puerto Rico, Japan and Dubai, in more than 10 markets. Which overseas markets are you eyeing next?

R: I’m going to Europe next week, to 8 or 9 different countries. Scandinavian countries love modular prefab systems and I’m going to Norway, Sweden, Finland, also going to Poland as well and Spain. But this is a night each, this is no vacation. I haven’t had a single day of vacation since I started the company.

C: I understand the basic concept of your business model is that you manufacture parts of the home in the factory then you ship them on-site before assembling them like Lego bricks. How big a challenge is that, logistically?

R: Extremely complex. The prefab business has always been a fragmented industry, meaning that American prefab companies cater mostly to American end users and you go straight to retail. Asian ones are catering to Asians, Malaysian ones are catering to Malaysians and so forth, and it’s the same thing in Europe.

C: So you try to build the factories close to your projects?

R: No, that’s why I have a network, because the orders are coming from different parts of the world. In some cases for example Batulao is not all, fully prefab. Some are inserted on site in terms of some of the components.

C: So it’s basically cheaper to do it that way?

R: Yes, and faster. This goes back to the value proposition of Revolution. The first is speed, we’d like to say we produce things – we used to say at least 90 days, but now I produce in 45, 60 days.

C: So how safe is your housing, Robbie?

R: These are rigorously tested from the factories which go up to 250km/h seismic conditions to the highest degree, so these are very strong robust structures.

C: So just to clarify they can withstand a bad typhoon or a bad hurricane?

R: Why do you think we’re shipping in Puerto Rico and why do you think our orders are coming from there? Didn’t they just have a massive hurricane there last year? This is exactly why the value added is also helping people get to the points they usually can’t get to. For example, Islands, Dubai the World Islands is perfect. Puerto Rico, Vieques is perfect.

C: So you’re actually solving the world’s housing shortage problem?

R: In a way. I mean think about it right? It’s not all about design anymore. The amazing thing about it is it’s not a want, it’s a need and that’s something we’re trying to solve here.

StillFromRevolutionPrecraftedPropertiesVideoTheArtParkManufacturedHomeLivingNewsMHProNews

Still from video above.

C: I know you’ve done the math, so I know you’ve worked out how much it costs in terms of transportation costs and shipping, give me an idea how much it costs to actually ship such a big structure to market?

R: It’s actually not that much. Our containers ship a little bit over a thousand US Dollars only, so some of these homes can be put in 2 or 3 containers and you can do the math, when it gets from one point let’s say Southeast Asia to Australia.

C: So you’re inking all these multimillion dollar deals everywhere across the world. But are you investing enough in factories to support the kind of growth you see overseas?

R: We have an amazing network of global fabricators, and depending on where their orders are coming from and from which region in the world, I basically make that call and start producing these homes. So it’s a really B2B2C model where we partner and form a joint venture or we supply to a developer and they turn it out to the end user, and so far the sales have been super robust. For example, our project in Lakeshore Pampanga, the world’s first livable food bar, sold over a 1000 homes in about 2 months so it’s very enriching to see that people appreciate what you do.

C: Are you upping your investment in factories? What sort of amount are we talking about?

R: Absolutely. Ultimately later on I’d like to have different networks of different fabricators, but I’m not at that point right now. I’d like to create my own because I’m literally a control freak.

C: You want to set up your own factory?

R: Yeah.

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C: When will it happen?

R: As early as this year actually. I’m already having conversations with amazing technology providers and we’re just going to go make the investment

C: So how many of your own factories do you ultimately want to have?

R: Ideally I’d like to have 1 per region, so ultimately that will be 6. I’ll start with Asia because that’s where most of the orders are coming from.

C: So, late last year, you’ve actually raised an undisclosed amount of money in your second round of funding from Singaporean venture capital K2 Global. Given all these deals you’re inking and your need for investment in factories, how soon before your next capital raising exercise?

R: I’m probably not going to do a Series C because we don’t need the money until maybe next year. We’ve gotten good fresh round from institutional investors and large family offices so I think it won’t be until next year when I have hundreds or thousands of these homes already and different master plans to show, and I’ve reached the goal of hitting the 25 countries we have to have penetrated by the end of the year.

C: What are your plans to take Revolution public? What are you looking at?

R: I mean there are only 2 ways to go to exit out of this or to maintain it. One is to sell it to a company.

C: Are you interested in that?

R: Look, the biggest homebuilders in the world are in America and they’re worth 10-13 billion so how can they buy some entity which should be selling at more than that? So the only way to go like many of the unicorns you’ve seen is to go public

RobbieAntonioArtParkVisionToAmericaStilfromVideoManufacturedMOdularPrefabHomeDailyBusinessNewsMHProNews

C: Where would you list?

R: Probably America, UK, or Singapore

C: What sort of time frame are you looking at?

R: Maybe 2020 or 2021.

C: Give me a sense of how big you will be in 2020?

R: 85 countries, we hope – north of several billion dollars of revenue a year.

C: North of several billion dollars?

R: That’s for sure

C: What are you talking about, 10 billion, 20 billion?

R: No, that’s probably a valuation but that will be very difficult to achieve in terms of revenue and high profitability. The greatest thing for our business would be if we can achieve the sort of scale where we can be truly global, supply everywhere, and be very highly profitable.

C: What is highly profitable to you? What sort of figure are you looking at?

R: 30, 35% margin

C: And is that something you’re looking at?

R: So, think about it. We have total project revenues about 7.2. About a 3rd of that goes to construction, that’s our revenue. So you can just do the math accordingly and then we make about 30% of that, so that’s what we’re expecting from the current deals. I haven’t even got to Europe yet though, but that’ll be next week.

C: Do you worry about expanding too fast?

R: Do I worry about expanding too fast? I don’t think I’m expanding fast enough in fact.

C: Really?

R: I’m a man of instant gratification and quite frankly I need to see things done very quickly. Expediency is integral and I always say my biggest weakness which is actually my biggest strength as well, is my impatience. I like to see things in a jiffy.

C: Will you be happy just heading Revolution Precrafted? Is there something else in the pipeline you want to kick off?

R: Not at all, I don’t think this is the ultimate legacy.

C: What other things are you planning?

R: I think we’re doing something great here.

C: But what projects would interest you? Does it have to be a 100 million dollar idea or 200 million dollar idea?

R: No, it’s got to be a several billion-dollar idea for me to jump and be excited about something, and it’s not just about the math believe it or not. It’s about truly changing the way people think about something. That’s what really interests me, the challenge of that. The sheer challenge and difficulty of achieving something that is seemingly insurmountable challenges me.

C: You father is well known Philippine real estate tycoon Jose Antonio of Century Properties. You’ve joined him in the ranks to be among Forbes’ 50 richest in the Philippines. How does it feel like to create your own business, to be successful in your own right?

R: It’s obviously gratifying. I know a lot of people and friends from different countries who are of the 2nd or 3rd generation and I respect that but I respect the founders more. I mean growing a business is very impressive, but starting a successful business is the most difficult thing.

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C: So you don’t want to be seen as the 2nd generation, you want to build something in your own right, in your own right?

R: I’ve already done it, so I think that’s the point of this exercise. And look, I don’t know what you call that, insecurity. Sometimes when I interview people I actually like people who are because they always have something to prove and when you have something to prove you work harder than everyone else.

C: You have something to prove all the time?

R: To myself. Not to anyone else, but to myself.

C: So your family is in real estate, your father obviously running Century Properties. Any valuable lessons you picked up from him over the years as young boy watching him grow his business?

R: I mean I obviously thank him because my love for real estate came from him so I will never take that away from him. But the desire to do something differently, the desire to create something is truly inborn and sort of innate with me, so I always try to innovate, disrupt an industry or industries.

C: Whether it’s Paris Hilton, Lenny Kravitz or Adrien Brody, you in particular hang out with the who’s who in the celebrity world. What’s it like having friends in such high places? Is it mostly business or mostly pleasure?

R: First, I don’t just hang out with celebrities. I mean a lot of people think that but a lot of it is they’re my friends. Some of them are my very good friends or my best friends. To me work is play; to me a trip in Spain has got to be filled with meetings aside from other things. It’s all intertwined in one.

C: So you always try to find a way to turn a personal relationship into a business relationship? You’re always looking for an opportunity?

R: I always think, “Is there a deal here?”

C: So when you’re talking to Lenny Kravitz or Adrien Brody, you’re always thinking is there something I can do with them?

R: I bet you half of them are thinking the same way! So I might as well just make the first move, some of them may come to deals and some of them may not be deals and that’s really ok,

I get back to them in a couple of months or weeks when I have something formidable because I want everyone to be excited by this.

C: You’re one of the most well connected young Filipinos today. You’ve been described as someone with a magnetic personality that no one can say no to. Are you really that persuasive when it comes to closing a deal?

R: First I think I give the value proposition in a succinct and formidable manner where they can truly understand it and buy into it. I think obtaining 76 of the world’s best architects and designers is not an easy thing and I’ve been doing this prior to this, so I’ve totaled it to about 84, probably more than any human being in the world

C: So you just turn on that Robbie Antonio charm to get people to say yes to you?

R: No, I mean, I think it’s just my personality. I’m very much driven by obtaining these things

C: Do people ever say no to you?

R: Of course some people do. Very few, but some people do. Most say yes and we’d like to keep it that way

C: You’re 41 years old, born in the Philippines. You studied many years in the US, got your Economics degree there, an MBA from Stanford, spent 5 years working in the US, joined your father’s business in 2009, and then really founded Revolution Precrafted in 2015. How would you describe your leadership and your management style? What is Robbie Antonio like?

R: I’m hardcore. I have an almost West Point type of leadership, military style. In fact I love interviewing military people, people who have business backgrounds because they’re very disciplined. I wake up my team up at like 4:35 in the morning.

C: You wake them up at 4:35 in the morning?

R: Yeah, I basically Whatsapp all of them and I ask for reports and all that and I’m probably the last person they hear from in the evening.

C: Is it true you have a rule in the office where employees have to answer a text or an email within 10 minutes of getting it and accomplish the task within 24 hours?

R: Yeah, that is correct and if I don’t hear from them, I have 1 of my assistants (and I have 4) contact them to get me a response.

C: Why is speed important to you?

R: Because it’s always a race. People say it’s not a sprint, it’s a marathon, but I strongly disagree. It’s both, it’s always a sprint and then you need to be sustainable to make it a marathon.

C: And finally as one who’s won awards and really made the journey, what advice would you give other young entrepreneurs on how to build great disruptive businesses?

R: Think bold, always think big and achieve it no matter what people say. Be passionate, be obsessed, do it all. Know your rights and never, never, ever give up. Once you give up it becomes a habit and you don’t ever want that to happen. ## (News, analysis, and commentary.)

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Related Reports:

$1.1BillionDollarPreFabProjectRobbieAntonioRevolutionPreCrafttedHomesDailyBusinessNewsManufacturedModularPrefabHomeIndustryMHProNews

Robbie’s Revolution Precrafted’s $1.1 Billion-Dollar PreFab Project

 

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SoheylaKovachDailyBusinessNewsMHProNewsMHLivingNewsSubmitted by Soheyla Kovach to the Daily Business News for MHProNews.com. Soheyla is a managing member of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com.

Manufactured Home Communities, Retailers, Developers Face Disruptive, Troubling Trend

June 8th, 2018 Comments off

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There’s an old axiom that describes the purported three options that someone faces when confronted with a threat.Fight, flight or deal with it.”

 

Marty Lavin, JD, is one of a few voices in manufactured housing who has publicly called out in digital print the problem of discrimination against manufactured homes where thousands can consider it.

MartyLavinJDMHProNewsLavin’s professional history has included involvement in a high volume retail center, land-lease communities, manufactured home lending, and working with a GSE. Lavin made the speaking circuit for years, was featured in the now defunct Manufactured Home Merchandiser Magazine, has periodically contributed for MHProNews, and published himself. He was awarded one of the Manufactured Housing Institute’s (MHI) most coveted awards, the Tataro, for his lifetime of service to the industry in financing.

So when Lavin says that “The HUD Code is a discrimination code,” it’s a phrase that should make industry readers across the spectrum sit up, and take notice. It should raise questions, like what does that mean?  We will explore that, and step-by-step see how it leads up to an emerging issue – one that is holding the industry’s sales at bay – related below. 

 

Discrimination Against MH

Ponder for a few moments the fact that modular, prefab, and tiny house builders – those who don’t build manufactured homes – distance themselves from manufactured homes. It isn’t just stick builders, or others in the general public, who attempt to besmirch manufactured housing, often by unjust and inaccurate reference to HUD Code homes as “mobile homes,” or “trailer houses.”   

There are regrettably voices within Manufactured Housing that mix the terminology in problematic ways too.  The need to correct terminology is real.

 

It’s a flawed strategy to diminish manufactured housing, or misuse the terminology, said L.A. “Tony” Kovach years ago. It plays into the hands of those who unjustly target any factory-built home.

Which is part of the reason why MHProNews and MHLivingNews periodically use the Steve Duke quote and graphic below.

Brad Lovin of the NCMHA put a different, but related point on the issue of mainstream media reporting.  

 PublishingHandPickedInformationCanBeWorsefortheImpressionItMakesOnManufacturedHomesandOurIndustryThanStatingEntirelyFalseInfo-BradLovinNCMHA

It is all part of the puzzle that has kept manufactured housing at historically low levels, during an affordable housing crisis.

 

Fractures Within the Factory Housing Industry

There are several fractures, and conflicts that exist within the ranks of factory builders. Modular homes get trucked in too.  Some modular homes have a permanent frame, at times referenced by industry members as “HUDulars,” while other MODs use a detachable carrier.  But site-built housing components get trucked to a job-site too. Does that make a site-built house, a trailer or pick up house?

Retailers have been known for decades to target residents in a land lease community for trading in their older manufactured home, encouraging them to buy a new one that would become part of a land-home package. No more “landlord” is part of the argument made in such cases.

Communities have competed with each other for residents, what some have called “poaching.” While unpopular among land-lease community owners, it is arguably free enterprise at work. Deal with it.

Developers of fee-simple land/home projects are impacted too, as the case below will explain.

All of these fractures demonstrate a lack of industry cohesion. But perhaps it is to be expected.  Certainly HUD has said that they don’t believe that it’s realistic to expect the industry to speak with one voice.  The related report linked below can be read later for additional depth of understanding on the point.

 

 

Regardless, all of the above plays into the hands of those in the offices of local jurisdictions who are prepared to discriminate against the sellers of – or providers of home sites for – HUD Code manufactured homes. 

 

Exclusive Hilton Head MH Development  

A developer and realtor in posh Hilton Head was recently in their local news for proposing a small development of single family manufactured homes.  The owner of the parcel wanted to subdivided it into lots for manufactured homes, to create some more affordable housing there.

HiltonHeadDevelopmentManufacturedHOusingIndustryDailyBusinessNewsMHProNews

Screen capture from Google News.

Push-back from NIMBY-minded locals was deafening.  They said they did not want “a trailer park” [SIC] with “mobile homes” [SIC] in their neighborhood.

 SICSicutJournalismDefintionSocietyProfessionalJournalismDailyBusinessNewsMHProNews

The realtor involved with the Hilton Head, SC, development plan told MHProNews that the homesites would be sold fee simple, they are not planned as a land lease. Every home owner would own their own land, the so-called land/home package.

That important detail that the proposed manufactured home development – that it was not going to be a “park” – didn’t seem to matter to locals.

 NimbyBananaDailyBusinessNewsManufacturedHomeLivingMHProNews

It is an example of the prejudice against manufactured homes being displayed for all who “google the news” about this industry to see. It exemplifies Lavin’s point about the HUD Code being used as a discriminatory target. 

While this directly impacts retail sellers of manufactured homes, it impacts factories too, and thus other product and service providers to the industry. 

The Hilton Head and other cases like it raise several legal issues. But law suits might cost that property owner in Hilton Head more than the profits from the sale of that parcel of land for development for manufactured homes may be worth. Sam Zell’s point about defending the property line is an apt one.

sam_zell_2013_ncc_fall_leadership_forum_featured_speaker_photo_credit_mhpronews_com_c_2013_lifestyle_factory_homes_llc_

Zell’s comments on defending the property line, along with other community related comments, are found in the interview linked here.

 

Developing Trend that Communities and Execs are Telling MHProNews

MHProNews has been virtually alone in reporting to the industry news stories like the one in Wisconsin, where local officials want to shut down a community they don’t like, by non-renewal of their operating license.  The details can be read later, in the article linked below.

Reprieve in Community Closure Collision, Another Round Ahead?

That attorney, others, MH Communities professionals, and executives are among those that have called or messaged MHProNews with their insights and concerns on what they described as a “disruptive, emerging trend.” 

Community operators have told MHProNews that they’re concerned that local jurisdictions targeting “blighted” properties near their own well-kept ones, which could be later used as a wedge to arguably undermine their license renewal too. 

 

Non-Renewal 

There are multiple cases in various parts of the nation where local officials are in various stages of non-renewal of a community’s license to operate, which would be a prelude to closing a community.

Such a forced closure could be a prelude to redevelopment with far more costly housing, or other forms of development. The biggest losers are arguably the residents, and they routinely say so to local media. The related report about a corrupt practice raised by Fox contributor John Stossel could be playing out in a similar way in MHVille.

Hundreds of New Manufactured Home Communities Opened, But How Many Have Closed? Industry Research Result$

All of the above are examples of what family-community operator Tom Fath has called an industry under assault.

TomFathTheMHCommunityWillSucceedWhenWeFocusOnFactsNoSaleBasedUponIllusionOrFeelingsDailyBUsinessNewsMHProNEws 

While this impacts producers of manufactured homes indirectly, it is a post-production issue. What have MHI discussions or “task forces” actually done to address such issues?

NorthStar and Manufactured Housing Radix

What positions will that the emerging new national association for community operators take to address such matters? Their stance could decide how many MHI members, or non-aligned communities, they will attract? 

 

Is the Industry’s Image Being Defined by the Lowest Common Denominator? 

Publisher Kovach has been a consultant, service provider, and a multiple award-winning manager/owner involved in the front lines of manufactured home retail and communities for decades. He says that this unjust discrimination against manufactured homes is but another example of how the underlying issues must be dealt with, rather than discussing the symptoms.

Among the reasons that the Daily Business News on MHProNews has spotlighted problems in the industry, is to help industry members fully grasp how officials and the public reacts to stories, like the one in Moscow, Idaho, or the more recent ones coming from Northern Georgia tied to controversial SECO board member, Tom Lackey.  The referenced links below can be read later.

“Jail Him!” NPR’s “Mobile Home Park Owners Can Spoil An Affordable American Dream” Refuted

More than one SECO member has attempted to defend their ‘hands-off Tom Lackey’ position.

One of them said recently that they are trying to lead by example. They attempt to show operators of visually unappealing or problem plagued properties how to upgrade their communities. They don’t want to be cops, policing their own industry.

Understandable. But does that go far enough? And when the SECO planning board members are in the news, drawing problematic headlines, what examples does that set?

 

Spencer Roane w/Southeast Community Owners (SECO), Praises Tom Lackey, Accused of Rent-to-Own Manufactured Home Sales Improprieties

 

In Ohio, stories about actual pre-HUD Code mobile homes burning down were used to change their state’s regulatory structure. It was an entirely unjust line of attack. Resident groups and the state association worked together to attempt to preserve the successful regulatory structure.

But in the end, the voices in Ohio pushing a “dangerous dwellings” narrative image won. Those anti-MH naysayers won, even though manufactured homes are safer than site built homes against a fire.  The anti-MH voices won despite the fact the incidents cited were true mobile homes. The appearance of MHI VP and general counsel, Rick Robinson made no appreciable difference, did it?

Manufactured Homes Commission Abolished, Effective January 21, 2018

 

Getting to the Underlying Issues 

It is the problematic stories in MHVille that are part of the root causes of the industry’s challenges, argues Kovach. It impacts all, but it is largely a post-production issue.  

Each individual business must create a distinction in the minds of the local home buying public. “That’s the opportunity in disguise,” Kovach says. 

Each business, every location, must learn how to effectively define itself. Otherwise, time after time, others will define you, often to your disadvantage.”  UMH’s Sam Landy is correct when he says that ultimately, each business must market itself.

But it is also a problem that an effective post-production national association could be utilized to address such challenges.

Fight, flight or deal with it.” Without dealing with the underlying issues, the industry can expect more of the same. The popular definition of insanity is to keep doing the same things, in the same ways, and expect a different result.  ##  (News, analysis, and commentary.)

(Third party images, content are provided under fair use guidelines.)

Related Reports:

Promoting Manufactured Home Ownership – With “Only 1 in 100 Eaten by a Lion”

On Aurora “Mobile Home Park” Closure, related Negative Media Coverage

Local Developer Says MH Community Hurts Property Value

George Allen Blasts MHI, NCC Ignoring Own, Spencer Roane, SECO, COBA7, Tom Lackey Controversies

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SoheylaKovachDailyBusinessNewsMHProNewsMHLivingNewsSubmitted by Soheyla Kovach to the Daily Business News for MHProNews.com. Soheyla is a managing member of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com.

 

President Trump Spotlights Factory Home Builder in Speech, Proven Promotion, Support of Industry Advancement

June 5th, 2018 Comments off

Presidential powers are substantial, but they are not unlimited. So among the tools a president can use to some effect is the bully pulpit. That’s the power of spotlighting a topic via a public forum.

 

In a speech, President Donald J. Trump raised the profile of a once-famed factory-based home builder he knew. The video of that part of his speech, is shown below.

 

 

The president’s family business has also had direct ties to an upscale factory home builder, Revolution PreCrafted Homes.

The 45th president clearly has personal knowledge of factory-crafted home building, as well as of conventional housing construction.

It is worth noting that Vice President Mike Pence hails from Indiana. Industry sources tell the Daily Business News, that then-Governor Pence understood manufactured housing (MH), used the proper terminology, and was supportive of the industry.

In Senate testimony, HUD Secretary Ben Carson, MD, has called modern manufactured homes “amazing.” Meanwhile, Secretary Carson labeled the regulatory regime of the Pamela Beck Danner era as “ridiculous.” Dr. Carson did so without mentioning her by name.

TrailerHouseMobileHomeManufacturedHomeFactoryBuiltHousingEvolution101MHProNews-MHLivingNews

Make a habit of using the correct terminology.

 

Operation Breakthrough

Levittown and that builder named by the president was an example of factory-based home building were included in HUD’s report on Operation Breakthrough, linked below. The linked reports on Operation Breakthrough – along with other linked resources from this article – can be read later, for additional details, and a deeper understanding.

HUD’s Operation Breakthrough, Promoting Factory, Industrialized Building – Mobile Home Era to Modern Manufactured Homes.

A HUD’s PD&R report linked below are one of the sources that demonstrated via university-level research that modern manufactured homes appreciated side-by-side with conventional housing in urban infill settings.

 

The full implementation of two existing laws – manufactured housing’s enhanced preemption and the Duty to Serve could unlock two trillion dollars in additional growth, without the need for massive federal spending.

Enforcing the law” has become a Trump Adminstration catch-phrase.

Enforcing the two laws linked here and above could pave the way to home ownership for millions, which in turn would spur the personal wealth of many, including blacks, Hispanics and all other demographic groups.

As Secretary Carson reminded the nation last year, home owners have an average net worth of $200,000, while renters only have an average net worth of $5,000 dollars.

There are debatably few other items that the Trump Adminstration could do than enforce those two existing laws, which would:

  • cost the federal government less tax payer money over time,
  • yield more wealth for millions,
  • all while creating more good jobs,
  • and higher domestic economic growth.

Virtually everyone, save perhaps a few monopolistic forces, would benefit from enforcing two laws already on the books regarding manufactured housing.

Two Great Laws Already on the Books NOW,  Can Unlock Billion$ Annually for Manufactured Housing Industry Businesse$, Investor$

 

Posturing vs. Doing

The Manufactured Housing Institute (MHI) has attempted to claim credit for the passage of the MLO rule when S 2155 was signed into law. The Masthead predicted that this dubious MHI claim would occur from the Berkshire Hathaway dominated association, prior to the signing of the bill.

It was the Trump Administration, not MHI, that made the MLO rule passage possible.

White House Signing Ceremony on Historic Pro-Growth Financial Regulatory Reform

Note that then candidate Trump pushed for such a bill, by campaigning for reforms of Dodd-Frank.

By contrast, Warren Buffett backed Hillary Clinton pledged to do what Barack Obama did. Chairman Buffett led Berkshire Hathaway used their manufactured housing mouthpiece, MHI, to posture reforms of Dodd-Frank for years. But that reform of Dodd-Frank was only accomplished under President Trump.

Buffett publicly supported President Barack Obama, who pledged to veto a bill that included a similar provision to S 2155. MHI’s now exited government relations Vice President Jason Boehlert admitted in writing that the passage of MHI’s bill, Preserving Access was unlikely while President Obama was in the White House.

2012 Election Results and Coming Lame Duck Session

By contrast, the Manufactured Housing Association for Regulatory Reform (MHARR) said early on in the Trump Administration that the industry could not ask for a better president in the Oval Office that Donald Trump.

Once understood, its an apparently classic case of what President Trump has called “a rigged system.”

 

Examples of a Corrupt, Rigged System?

The Washington Post made it clear that it was MHARR, not MHI, that worked with the Trump Administration to exit the destructive regulatory steps Pam Danner, JD, caused manufactured housing operations during her tenure at the Office of Manufactured Housing Programs (OMHP).

Greener, Stylish Manufactured Homes – Hidden Facts in the Washington Post Manufactured Housing Narrative

MHI EVP Lesli Gooch specifically told the Washington Post that they did not weigh in on the Danner controversy. That confirmed months of MHProNews reporting on that subject.

By contrast, Mark Weiss, President and CEO of MHARR, was cited by the Washington Post as specifically pushing for the removal of Danner as an Obama Administration holdover, who was working contrary to President Trump’s regulatory freeze order.

The fact-patterns appear to be stark, and clear.

The Buffett/Berkshire dominated MHI was allegedly posturing reforms of Dodd-Frank and HUD, but in fact supported for president, first Barack Obama and then Secretary Hillary Clinton. That’s Mr. Buffett’s right, but then it is debatably unjust for MHI to claim that they were trying to mitigate regulations.

In fact, regarding the Department of Energy (DOE) plans for manufactured housing under the Obama Administration, MHI was promoting heavier regulations, while MHARR stood alone among MH industry associations in Washington D.C. to stop them.

Manufactured Housing Institute (MHI) Shifts on DOE Regulatory Rule, Report, Analysis

Marty Lavin, JD, bluntly said on the record that MHI was working for “the big boys” and their interests.

The MHI award-winning Lavin has previously said “pay more attention to what people do than what they say.” In hindsight, isn’t it clear that MHI said they wanted to make certain reforms, but in fact Buffett’s “big boys” – such as Berkshire owned Clayton Homes, 21st Mortgage and Vanderbilt Mortgage and Finance (VMF) – were working to maintain or even increase regulatory burdens?

Why?

Because heavy regulations are both a barrier of entry to new businesses, and are also a force that can crush existing business operations. It is part of Buffet’s strategic “Moat” philosophy.

 

Using the established principles that high taxes, and high regulations harm smaller business, the Buffett tool of MHI was de facto aiding in the consolidation of manufactured housing companies. These are points President Trump has often raised in a general way in his speeches.

Sources on- and off-the-record have leveled charges that MHI was working against the interests of smaller companies, while Berkshire Hathaway owned brands and some others in manufactured housing were “consolidating” – or killing off – smaller independents for years. MHI’s own data reflects the trend.

 

While MHARR has raised such issues in their own fashion, only MHProNews among the industry’s trade media has spotlighted these concerns. Long-time readers will recall that MHProNews editorially supported and endorsed President Trump during the 2016 campaign. That support drew the attention of the presidential campaign, which for months had one of this writer’s articles on the Donald J. Trump campaign website.

12ReasonsEducatedIranianAmericanWomanSupportsDonaldTrumpPostedMastheadBlogMHProNews954x846

While the Manufactured Housing Institute (MHI) paid for two pro-Clinton speakers in the closing days before the 2016 election, the Kovach family and MHProNews supported Donald J. Trump’s candidacy as the best for the industry, small business, and hundreds of millions of Americans. One of those stories ended up on the president’s campaign website, and hundreds of conservative and pro-Trump websites.

While industry’s bloggers and MHProNews competitors were often shilling or cheering MHI and Berkshire Hathaway owned brands, MHProNews and those who support this platform stood alone in the industry’s media to warn the industry’s members against the complex, and tortured ways MHI and Berkshire Hathaway were killing off and/or “consolidating” companies at bargain prices.

Time Travelers, and the Future of American Homes

Marty Lavin, a manufactured home industry success story in his own right, has said “follow the money.” People are entitled got their own opinions, but they are not to their own facts. MHI can claim to be working to mitigate regulations, but where is their evidence? Why did MHI VP Rick Robinson dodge questions and debate in Deadwood in 2017? Or why did MHI President Dick Jennison dodge questions in Louisville in 2018?

The Trump Administration is doing their part. They are striving to undo the damage of years of crony capitalism in Washington, D.C., step-by-step.

If Brian Montgomery and Secretary Carson will avoid the trap of appointing a MHI candidate to be the non-career Administrator of OMHP at HUD, it could be another next step forward for millions of Americans.

Based upon reports from industry sources, MHProNews has supported Vic DeRose to replace Danner. DeRose could be someone that holds to the regulatory philosophy of the president, to administer the manufactured housing program in a way that could benefit industry and consumers alike. “We Provide, You Decide.” (C) ## (News, analysis, and commentary.)

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Related Reports:

Understanding the Modern Realities of MHVille – Winners, Losers, Profits, and Loss

Clayton Homes, Top 25 Manufactured Housing Industry Report, Trend Lines

NAR’s Lawrence Yun Raises Alarm for New Housing Crisis, MH Import?

Rollohome, Creating 60,000 Factory-Built Homes in 2 Years

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SoheylaKovachDailyBusinessNewsMHProNewsMHLivingNewsSubmitted by Soheyla Kovach to the Daily Business News for MHProNews.com. Soheyla is a managing member of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com.