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Home > Affordable Housing, Analysis and Commentary, Association, Company News, Economy, Manufactured Housing Industry, News, Trends > Patrick Industries-Manufactured Housing Supplier-PATK Investor Relations Spotlights Manufactured Home Industry Challenges, Opportunities

Patrick Industries-Manufactured Housing Supplier-PATK Investor Relations Spotlights Manufactured Home Industry Challenges, Opportunities

May 30th, 2019

 

PatrickIndustriesLogoPATKirManufacturedHousingSupplierSpotlightsManufacturedHomeIndustryChallengesOpportunitiesMHProNews

It has been some times since the Daily Business News on MHProNews took a look under the hood at Patrick Industries.  Patrick (PATK:NASDAQ) is a supplier to the RV, Marine, Manufactured Housing, and other segments of the broader Housing Industries. Their Investor Relations (IR) package is a useful resource in understanding that firm.  But it is also useful in understanding the true picture of the state of manufactured housing, in the context of a broader view of the economy, and other industries, as they compare or relate to manufactured homes potential.

 

This report will be done primarily through slides, from the Patrick IR package.  Some commentary are on select slides, with more below and linked.

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PatrickIndustriesPATKCompany2018SnapshotManufacturedHousingIndustryMHProNewsMarketPlatformsPatrickIndustriesRVsMarineManufacturedHomesIndustrialHousingMHProNews

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Patrick has facilities positioned close to most major manufactured housing markets. Note that MHProNews has no position in PATK, and is not commenting on them as an investment per se. PATK is one of the companies MHProNews tracks in its evening market report.

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Patrick is not alone to point to the robust economy, notably taking off since the election of President Donald J. Trump. These are positive background facts that ought to point to far more robust manufactured home (MH) sales. Why isn’t MH doing better?

DemograhicTrendsAcrossEndMarketsPatrickPATKirManufacturedHousingIndustryMHProNews

RVindustryPatrickPATKmanufactruredhomeindustryMHProNews

PatrickPATK-RVRetailInventoryShipmentsDownturnProjectedManufacturedHousingIndustryMHProNEws

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PatrickPATKIndustryOutlookRVWholesaleShipmentsmanufacturedhousingIndustryMHProNews

While RVs and automotive have both taken a dip, there are factors at play in those industries that don’t always apply to manufactured homes. RVs are a ‘luxury’ item for most. Manufactured homes are more commonly purchased as primary housing, or as a secondary home. During an affordable housing, why would RVs outperform MH?

PatrickPATKirMHContentPerUnitManufacturedHousingIndustryMHProNews

PatrickPATKir-GrowingHousingDemandManufacturedHousingIndustryHousingStartsMHpercentageNewHomeStartsMHProNewsIndustryTrendsFavorableOpportunitiesButManufacturedHousingIndustryLeadersFailtocapitalizeMHProNEws

PatrickPATKirManfuacturedHousingWholesaleShipmentsManufacturedHomeProductionShareofSingleFamilyHousingIndustryUnderperformingMHProNews

 

 

Note that Clayton Homes, 21st Mortgage, other Berkshire Hathaway connected brands, and the Manufactured Housing Institute (MHI) have been repeatedly invited to comment on, clarify, or refute concerns we have raised in reports like the one linked below.

 

SmokingGunEvidenceOfAntiTrustMonopolisticCollusionMoatClaytonHomesKevinClayton21stMortgageTimWilliamsWarrenBuffettMHLivingNewsMHProNews

In a series of direct quotes in context, a document from 21st Mortgage signed by Tim Williams, and video recorded comments by Kevin Clayton, these all line up to demonstrate how independent retailers, communities, and producers – among others – where purportedly harmed by action that could be deemed an antitrust violation. Why hasn’t Allen told his readers how that cost them money? https://www.manufacturedhomelivingnews.com/bridging-gap-affordable-housing-solution-yields-higher-pay-more-wealth-but-corrupt-rigged-billionaires-moat-is-barrier/

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While the video below doesn’t mention antitrust, it does specify several other federal issues that Clayton Homes, 21st Mortgage Corp, and Vanderbilt Mortgage and Finance (VMF).  Views on this video have more than tripled since it was first promoted by MHProNews.

 

 

Those in the Knoxville metro and Arlington, VA have routinely declined doing so in the past two years, although prior to that, they used to reply promptly to MHProNews inquiries. Why the change?  Were the questions too uncomfortable?

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In 1998, manufactured homes (MH) outsold RVs by some 3 to 2. In 2017, RVs outsold MHs by some 5 to 1. RVs recovered far more quickly from 2008. The facts raise questions. One, is the effectiveness of MHI as the post-production or ‘umbrella’ association in the country. The other question is more sobering. Has Buffett-Berkshire “Moat” strategies kept manufactured home production at historically low levels to allow a few big boy brands to consolidate others at a discounted ‘value’ by MHI insiders?

MHARR Launches “Fighting Discriminatory Zoning Mandates” Manufactured Housing Project

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While MHI in their monthly shipment report doesn’t deny the decline, neither are they addressing the underlying causes, nor have they proposed a remedy via their messages to the industry. Why not?

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From the early days of this publication, MHProNews featured content from state associations and both national trade groups.  These sources did not always agree with each other.  That was part of the origin of our phrase, “We Provide, You Decide.” MHProNews provided the comments of MHI, the Manufactured Housing Association for Regulatory Reform (MHARR), and members of MHEC – the Manufactured Housing Executives Council, made up of the bulk of state associations.

 

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MHI, and Berkshire brands were among those that once sponsored this website.  Perhaps due to our questions and reports, they stopped sponsoring and advertising on MHProNews, which is their right. What is not their right are allegations that they obliquely organized a boycott to discourage sponsorship of this site, if true, that could be an antitrust violation.

But as or more important is why would the Arlington, VA based MHI trade group do so, when we were a multiple year MHI member? Why did those who previously praised our work, turn against us? Given that the thrust of our effort for years has been focused on practical solutions for sustainable, ethical manufactured home industry growth, does that provide an insight on the motivations for the Omaha-Knoxville-Arlington axis’ efforts to marginalize MHProNews?

Why doesn’t MHI have this video below, first shown on Fox Business, prominently on their website?

 

 

Rephrased, are these additional pieces of evidence that Berkshire, Knxoville metro based Clayton Homes, 21st Mortgage, and some key MHI members working to suppress the industry’s performance?

That is a logical conclusion is that our reports could led an open-minded researcher to conclude.

Quotes that often come from past or present MHI members – like those that follow – would support that contention.

 

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MarkWeissDTSQuoteManufacturedHousingAssocRegulatoryReformMHARRDailyBusinessNewsMHproNews

Allen has pointed out the obvious, that MHARR is a sponsor of our website. But that’s out in the open, MHARR has banner ads here. What Allen fails to mention is that MHI used to sponsor MHProNews too. Our coverage has been based upon our LLC’s own research and work, without favor.

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MHProNews looks at the facts, considers the sources, and follows the evidence. MHI earlier last year, and for years before, MHI routinely replied promptly to all inquiries. But since we’ve spotlighted the problems and concerns, they’ve gone silent. Why? If the facts are on their side, why not make offer a cogent explanation?

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Ask yourself. Do these Marty Lavin dictums apply in the case of concerns that MHI is posturing effort, but failing to deliver what they claim, in order to promote industry consolidation that benefits a few at the expense of the many?

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Never forget that even during medieval times, castles and their moats were in fact breached.

DannyGhorbaniFormerMHIVpQuoteFoundingMHARRPresidentQuoteDailyBusinessNewsMHProNews

The full Patrick presentation is available as a download from this link here.

 

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News has been described as the first draft of history. That’s today’s latest edition to the manufactured home industry’s turbulent history, what we’ve dubbed: “News through the lens of manufactured homes, and factory-built housing” © where “We Provide, You Decide.” © ## (News, analysis, and commentary.)

 

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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.

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