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Sobering Federal Report on Manufactured Housing Lending – Retailers, Communities, Producers, and Finance Companies – Take Note

January 17th, 2019 No comments

 

SobertingFederalReportOnManufacturedHOusingLendingRetailersCommunitiesProducersFinanceCompaniesTakeNoteBCFPDirectorKathleenLKraningerMHProNews

The rebranded Bureau of Consumer Financial Protection – formerly the CFPB, now the BCFP – has produced a January 2019 report that contains new data regarding manufactured housing lending.

 

There are over 200 pages. We’ll simplify that for busy readers.

MHProNews will hereby provide the entire document here as a download, while give readers like yourself the most relevant pull-quotes for manufactured housing.

After the quoted sections and tables, the Daily Business News on MHProNews will provide a brief and relevant analysis for manufactured home industry professionals, investors, affordable housing advocates, plus public elected or appointed officials.  The graphics are from the name of the report, that included the following quoted items.

 

BureauConsumerFinancialProtectionJan2019AbilityRepayQualifiedMortgageRulesAssessmentReportDailyBusinessNewsMHProNewsMessageFromKathleenLGrningerDirectorBureauConsumerFinancialProtectionAbilityToRepayQMReportDailyBusinessNewsMHProNews

 

7.2.1 Data and methods

Figure72CountyLevelMarketShareofSmallCreditorsin2014HMDABureauConsumerFinancialProtection

2014…

This analysis uses the non-public HMDA data described in Chapter 1.350 In the context of this chapter, any reference to “lender(s)” or “creditor(s)” only refers to HMDA reporting lenders. Estimates of small lenders in this analysis are not the complete universe of mortgage originators. The Bureau estimates that there are over 4,000 depository institutions which originate mortgages but are not HMDA reporters. Most, if not all, of HMDA non-reporters would qualify as small creditors due to their small size…

Figure73CountyLevelMarketShareofSmallCreditorsin2016HMDABureauConsumerFinancialProtection

…2016. Fewer lenders, ‘consolidation.’

Table 38 reports mortgage originations by small and non-small creditors in rural counties.366 Among small creditors, the share of total originations occurring in rural areas is much larger than for non-small creditors. This appears to be consistent with the higher likelihood that small creditors operate only or predominantly in rural or underserved areas compared to non-small creditors. The 2016a columns suggests that without the 2016 threshold amendments, the rural share of small creditor originations would have stayed the same instead of decreasing to 21…

—–

Foonote 366) The Bureau publishes a yearly list of rural and underserved counties that are exempt from certain regulatory r equ irements of the Truth in Lending A ct. Bureau of Con sumer Fin. Prot., Rural and Underserved Counties List, available at https://www.consumerfinance.gov /policy-compliance/guidance/implementation-guidance/rural-andu n derserved-counties-list/ (last v isited Dec. 31, 2018) (for the current and previous y ear’s lists).

EstimatedNumberHMDAReportingMOrtageLendersOriginationsRuralCountiesJan2019BCFPReportDailyBusinessNewsMHProNews

…percent in 2016 with the amendments. The 2016 amendments did however increase the share of small creditors operating in rural areas due to being more inclusive of larger lenders. The amendments in 20

Table 39 reports manufactured housing mortgage originations by small and non-small creditors. Manufactured housing loans make up a larger share of small lenders’ originations compared to non-small lenders. Similar to rural loan originations, these patterns are consistent with small creditors being more likely to provide access to mortgage credit for manufactured housing compared to larger creditors although the share or manufactured originations that make up a small creditor’s lending has been declining since 2012.

 

Table39EstimatedNumberHMDAReportingManufacturedHousingMortgageLendersBCFPJan2019

What Does This Reveal for MHPros, Policy Wonks, and Advocates?

Lenders in the manufactured housing space has declined during the period reported.

Put differently, manufactured lending has contracted, just as the number of retailers have shrunk.  Here is the key line.

“…small creditor’s lending has been declining since 2012.”

This has occurred in the aftermath of Warren Buffett led Berkshire Hathaway’s acquisition of Clayton Homes, other producers, retailers, and associated lenders, notably 21st Mortgage Corp and Vanderbilt Mortgage and Finance (VMF).

While making noise for several years about making the Duty to Serve by the Government Sponsored Enterprises (GSE) a reality, what the BCFP data reflects is that the opposite is taking place.

Manufactured housing professionals, investors, and advocates? This is another wake up call.  For more details, see the related reports, linked below the byline and notices.  That’s this afternoon’s Manufactured Housing “Industry News, Tips, and Views Pros Can Use,” © where “We Provide, You Decide.” © ## (News, analysis, and commentary.)

 

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Examining Derek Thompson’s Atlantic Report on ‘Mobile Home’ Retail Market as Fastest Dying Business In America

January 10th, 2019 No comments

 ExaminingDerekThompsonAtlanticReportMobileHomeMarketRetailMarketAsFastestDyingBusinessinAmerica

 

At the center of a perfect storm of boomer burnout, a brutal recession, and a rapidly changing industry, the mobile home retail market could be the worst industry in America. Here’s why,” wrote Derek Thompson as his subheading on a story for the Atlantic, a popular progressive news and views website. With a raging affordable housing crisis in the U.S., or in Canada for that matter, how is this contraction possible?  

 

At the time Thompson’s report was published, it was the headline that shocked many in the manufactured housing industry.  That headline sparked controversy, which wasn’t limited to the threat to manufactured home retail, but could have been misread as a challenge to the existence of other parts of the industry.

That headline? “America’s Fastest-Dying Business? It’s Mobile Homes1,” said Thompson. Across the left-right divide in manufactured housing professional circles, Thompson’s narrative sent shock waves and reactions, including commentary and reports here on MHProNews.

 

TheAtlanticLeftRightMediaDivideManufacturedHousingIndustrySharylAttkison

 

But in hindsight, Thompson – who obviously erred in terminology when he referred to federally regulated, HUD Code manufactured homes as ‘mobile homes‘ [SIC] – was citing serious data. Besides the error in terminology, was there any other oversights or misses in Thompson’s report?

To properly analyze any study, research, or statements, one ought to first admit that no single report can cover every detail or nuance. This report, like Thompson’s or any other is self-limiting. Facts, quotes, and statements are used by a writer who could have arranged them in a variety of ways. That years later, Thompson’s work in the Atlantic is worthy of review stands on its own merits.

The Daily Business News on MHProNews is hereby looking back at the Atlantic report, a section-by-section “Fisk” or fact-check of what was good, bad, or possibly missed. While this focused on retailers – what Thompson calls “dealers” – it should be more broadly understood by manufactured housing (MH) investors and professionals as impacting every part of the industry.  Why?  Because then and now, a large part of the industry’s production goes to market via retailers.  Having – or not having – a sufficient number of independent retailers has and still does place pressures on manufactured home producers, communities, suppliers, installers, transporters, financial service firms, and arguably all others throughout the industry. 

 

FiskFiskingDefinitionManufacturedHssuingIndustryDailyBusinessNewsMHProNews 

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Design by MHProNews.

Following his subheading quoted above, Thompson wrote as follows. “If I asked you to name America’s least fortunate industry, your mind might go to records stores, obliterated by on-demand apps; or photofinishers, left in the cold as digital cameras turn Americans into our own photo editors; or fabric makers, where business is booming … in Shenzhen, China. 

But when it comes to unlucky industries, it’s manufactured home (aka mobile home) retailers who really hit the trifecta*. First they missed out on the housing boom. Then they felt the gut-punch of the recession. Now they might yet might miss out on the recovery. That makes them America’s fastest dying industry, according to a new report from IBISWorld.”

DyingUSIndustriesNotMobileHomesManufacturedHomesDailyBusinessNewsMHProNews

These graphics were part of Derek Thompson’s original report, and are placed in the same location with respect to the Atlantic’s narrative. That original report is linked here.

 

If Thompson was referring to the conventional housing boom of the early 2000s, he was quite correct in saying that manufactured housing missed it. 

But in the early 2000s, Eric Belsky of Harvard University’s respected Joint Center for Housing Studies (JCHS) had been researching manufactured home quality, and the industry in general. Based upon his research, Belsky projected that despite of the slide in manufactured home sales due to the arguably self-inflicted wound of a repossession glut in the late 1990s and the early 2000s, Belsky’s study and analysis led him to believe that given the need for affordable housing plus the improved quality of manufactured homes, would lead the industry into housing dominance by 2010.

So, Thompson mentioned none of those points by Harvard’s Belsky.

That said, the projection by Belsky proved to be wrong, for reasons noted and explored as part at the report linked below.

 

Bridging Gap$, Affordable Housing Solution Yields Higher Pay, More Wealth, But Corrupt, Rigged Billionaire’s Moat is Barrier

 

Back to Thompson’s narrative in the Atlantic.

With a 70+% decline in revenue over the last ten years, the mobile home industry faced a descent on par with record stores and clothing mills. But it’s the pace of its future decline that sets them apart. In the next six years, manufactured home dealers are projected to see revenue evaporate 50% faster than even music stores and the wired phone industry. Here are full IBISWorld rankings, listed by industry revenue.”

 

NPRAtlanticDyingIndustryManufacturedHomeRetailNotMobileHomeDailyBusinessNewsMHProNews

Notes to new readers on MHProNews. 1) MHProNews uses brown and bold fonts to reflect direct quotes. 2) The graphic above was part of Thompson’s Atlantic report at this same point in his narrative, but the arrows and commentary are by MHProNews.

 

***

Noting again the error in industry terminology issue, which should have said manufactured home, Thompson wrote, “The typical mobile home buyer is a retiring, low-income couple in the southeast, said Mary Gotaas, an analyst at IBISWorld. The southeast region accounts for 40% of the industry’s dealership, and mobile homes are usually bought by consumers over the age of 50. “They’re retiring, they don’t care about equity or link-to-land ownership, and they want something cheap because they’re saving for things like medical bills,” she said.”

Ironically, at about that same time, HUD was producing a PD&R that reflected university-level research on manufactured housing. Here’s how HUD describes a PD&R, “The U.S. Department of Housing and Urban Development’s (HUD’s) Office of Policy Development and Research (PD&R) supports the Department’s efforts to help create cohesive, economically healthy communities. … It is intended to help you identify PD&R data sets that can be used as a basis for your research or analysis.”

 

RegulatoryBarrierstoManufacturedHousingPlacementinUrbanCommunitiesHUDPDR-postedManufacturedHomeLivingNews595x357 (1)

The HUD PD&R screen capture – with linked download available here – arguably reflects a lack of understanding about how enhanced preemption could solve the affordable housing crisis using mostly private capital. The research is useful, but adding in the missing ingredient of enhanced preemption would make it priceless. 

That roughly 8 year old research commissioned by HUD made the point that the data reviewed proved  that manufactured homes could and did appreciate in value, and that it did do so side-by-side with conventional housing in urban neighborhoods as infill. Some of the biggest ‘hits’ on the manufactured home industry’s products and value-proposition were being debunked by university level scholarship.

Returning to Thompson’s narrative in the Atlantic, “Thirty years ago, I had a list of 90 manufactured homes makers,” said Thomas Roberts, a real estate agent with Century 21 Realty in Fremont, California, who works with mobile home makers. “Today, I don’t think there are more than 25. Nobody’s opening mobile home parks.”

Both of those claims were exaggerated at best, and were demonstrably errant. But Thompson was quoting someone else’s claim. And while factually wrong, the trend lines were broadly relevant.

 

MHI-21stMortgageKevinClaytonClaytonHomesManufacturedHoomeCorporationsPlantsDailyBusinessNewsMHProNews_001

 

There were dozens of fewer factories, and the creation of new manufactured home (MH) communities had slowed to a trickle.  As noted above, all of that can be traced in part to a restriction of capital/financing. That impacted the occupancy rates of MH communities, and thus also the creation – or lack thereof – of new land-lease communities.

DataCompMHVillageNewManufacturedHomeCommunityOpeningsNotMobileHomeParksManufacturedHomeIndustryResearchDataReportsMHProNews

 

Thompson next said, “Five broad factors account for the mobile home industry’s long slide. First, the housing bubble’s loose credit encouraged low-income families to buy regular “site built” homes instead of mobile homes. Second, the recession hit low-income folks who comprise most of the mobile home market harder than average. Third, the housing bubble’s collapse killed the price of houses and condos, making them a better deal for low-income families (especially since manufactured homes depreciate in value, while a house’s value increases over time). Fourth, older couples who would normally sell their house to buy a mobile home are waiting for the value of their houses to rebound. When the market recovers, they’re more likely to buy “modular homes,” which differ from mobile homes because their walls are put together on site.”

That is once more laced with errors and accurate insights alike. Modular homes are built in modules, with the walls already assembled, plus an ongoing terminology issue, misusing ‘mobile homes’ when he means ‘manufactured homes.’ But those errors aside, several point are broadly correct. Furthermore, in Thompson’s defense, he was citing third-party sources. So, he might be forgiven technical industry errors in writing a one-and-done column about what he thought was a dying industry.

 Terminology2HarvardFreddieMacNeighborworksManufacturedHomeDefintionMobileHomeTraileModularPanelizedDailyBusinessNewsMHProNews432

 

Thompson rolls on in his narrative in this fashion. 

Fifth, and most importantly, even when demand for mobile homes returns, retailers might be left in the dust. A new trend in mobile homes is for manufacturers to open their own outlets, so that retailers are bypassed.” That was a telling comment, on what industry professionals refers to as vertical integration.

 

 

Wrote Thompson, I actually think the next six years are going to shape up for [mobile homes] really well,” said Thayer Long at the Manufactured Housing Institute. “People are looking for smaller homes, and dollar-for-dollar, we offer the best house.” Thompson or his editor clearly should not have inserted “mobile homes” in brackets, given that Thayer Long well knew that they are HUD Code manufactured homes. For newcomers, in the U.S., there have been no mobile homes built in the U.S. since June 15, 1976, in Thompson’s misinterpreted sense of the term.  In Canada, their mobiles homes of the past, gave way to their Z240 code for manufactured homes decades ago as well. 

But what followed from Thompson was arguably vexingly correct, “The future of the industry will resemble Clayton Homes, a mobile home conglomerate which was acquired by Warren Buffet in 2003. Clayton started as a retailer, but they’ve expanding into manufacturing, financing, leasing, and insuring mobile homes. Now the company is a do-it-all industry leader that even serves as a distribution center for other manufacturer’s homes. Thus sounds the death knell for private mobile home retailers.”

While that was broadly accurate, what Thompson did not note was how this was being accomplished. Once more, the facts presented in the report previously linked or here paints a more complete picture.

 

 

TrailerHouseMobileHomeManufacturedHomeFactoryBuiltHousingEvolution101MHProNews-MHLivingNews

You must meet people where they are. Terminology must be taught and caught. Make a habit of using the correct terminology.

 

Disclosures About Disclaimers  

Think about this fact. Mainstream news media routinely uses other firms logos, content, videos, and images. How do they do that without getting sued for copyright violations?

Short answer?

First, we are not attorneys, but our reading of what federal websites and the courts have upheld is the following. That under the principle of “fair use,” media is able to use others content in specifically defined ways. So, when a firm like MHProNews uses Clayton Homes, 21st Mortgage, or the Manufactured Housing Institute logo of content, and stays within those “fair use” for news-media lanes, they are a legal defense from a claim of copyright infringement.

That’s mentioned for a few reasons.  One, while the Atlantic provided their fair use disclosures in their article by Derek Thompson differently than MHProNews has been doing for years, they gave disclosures too. No doubt, those disclosures where provided with fair use guidelines in mind.

Here is how the Atlantic finished up their disclosures on Thompson’s article.

Photo: Afroswede/Flickr

____

*Contrary to common belief, today’s manufactured or mobile homes don’t all look like 1960s caravans, with the cinder-blocks and wheels. Manufactured homes are prefabricated houses built entirely off site and delivered to where the family has leased land. They can look awfully like real “site built” homes. See for yourself on Clayton’s gallery of manufactured and modular homes. The word “mobile” doesn’t always to their constantly moving — although many mobile homes are built on wheels — but rather their ability to be transported when needed.”” MHProNews Footnote 1: coming from a non-MH industry professional, that’s a pretty good mainstream explanation of a manufactured home.

Thompson and/or his editor used a British expression “1960s caravans” to distinguish the mobile homes of the past, with the manufactured homes of today. At the end of their article, they essentially corrected the terminology errors the rest of the Thompson article used. That is arguably better than many in mainstream media do, given that thousands of articles or videos errantly use ‘mobile home’ indiscriminately and/or interchangeably with manufactured homes. 

 

BagPhonesToCellPhonestoSmartPhones2019ManufacturedHousingIndustryDailyBusinessNewsMHProNews

 

There are phases are different points in the evolution of the factory-built home industry history, just as there has been an evolution in telephones, computers, automotive or scores of other industries. For instance, one doesn’t properly call an old bag phone from the 1980s – the early version of a cell phone  to the smart phones of today.  The two are different, but the former evolved over the years into the later.

 

TerminologyMattersBecausetheTerminologyDescribestheConstructionStandardsHomeBuiltToSteveDukeLMHAaMHLivingNewsMHProNewsBiggerPocketsSunshineHomesRedBayAL

The terminology matters because
the terminology determines the
construction standards a home was
built to,” Steve Duke, LMHA.

 

Thompson’s article linked to Clayton’s website. It bears mention that an article last year in the Boston Globe, didn’t link Clayton’s site, but it did spotlight Clayton Homes produced homes and pricing. More on that another time. 

Finally, about what some might see as the overuse of third-party discourse notices on MHProNews. MHI has had multiple attorneys over the course of years sending threatening letters to the publisher of MHProNews. Among those are “cease and desist” letters are complaints about the use of a logo, which were part of the fisking of their content. Those attorneys arguably must know – if they are worth their salt – that they have no legal leg to stand upon. That’s not to say that they can’t sue.  In America, almost anyone can. But MHI – and the powers behind their throne – must know it is a hollow threat in the sense that they realize that MHProNews is operating within the guidelines of fair use.  

What MHI attorneys, leadership – elected or staff – have not done is debunk or disprove any of our research. They arguably want to silence this platform, which is demonstrated in a variety of ways. But emailed invitations as recently as last week to: Clayton, 21st, Cavco, Nathan Smith/SSK Communities, and MHI’s staff leadership have yet provided not a single intelligent response that debunks a even one claim or concern raised here or on MHLivingNews. Rather, MHI and their powers-that-be demonstrably have used efforts – like threats of litigation – to silence us by threats and intimidation tactics?

What should that tell the industry’s readers and investors?

HowardWalkerJDELSViceChairmanPhotoManufacturedHouisngInstituteMHIExecuitiveCommitteeBoardMemberDailyBUisnessNewsMHProNews

The words of the late Howard Walker, ELS Vice Chairman, shared for publication with MHProNews.

TimWilliams21stMortgagePublicationDailyBusinessNewsMHProNewsMHLivingNews

Some of those who allegedly are now resisting the reports on MHProNews, have previously and publicly praised MHProNews as the best in the industry.

What messages from readers and third-party metrics tells us is this. Our readership – which was already the runaway #1 in manufactured housing trade media – has skyrocketed since we began our exposes of the purportedly rigged, corrupt system that the Omaha-Knoxville-Arlington axis and their allies have used to slowly monopolize manufactured housing. What this article in the Atlantic did was identify the trend.  What the Atlantic’s Thompson didn’t do is identify how that was done by manipulating capital, credit, and more.  Again, click here to learn more.

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LegacyHousingUpcomingPlantShowBANNER-AD-3

Legacy returned as a sponsor. Placement of their ad, or any others, shouldn’t be construed as that sponsor agreeing with any specific article.

Others think that they also benefit Omaha-Knoxville-Arlington axis and what is arguably a rigged system too. But there are growing voices within those operations that confirm and thank us for reports like this one.  The rise of former MHI members, who launched new trade groups, or left MHI, are evidence that the research here is based on realities that others in manufactured housing recognize, and are acting upon.

 

Atlantic/Thompson Fisking Takeaways? 

Are independent manufactured home retailers SLOWLY dying?

The trend lines say, sadly, yes. A state association executive said almost the same rate of decline in the total number of independent retailers roughly a year ago. Facts and trend lines are what they are. 

ManufacturedHousingSHipmentsBloombergQuintFactoryBuiltRebuidRecoveryDailyBusinessNEwsMHproNEws

Spotlighting this trend is debatably necessary as part of the process for the underlying causes of affordable housing’s crisis.  “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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New Era in National U.S. Manufactured Home Community Representation Underway?

Production Decline Continues in November 2018

 

Independent National Manufactured Housing Post-Production Association Takes Major Step

 

 

 

 

 

“Pants on Fire” – Latest New Manufactured Housing Shipment Report

December 4th, 2018 Comments off

 

PantsonFireNRCC-LatestNewManufacturedHousingShipmentReportDailyBusinessNewsMHProNews

Liar, Liar, Pants on Fire…”

    part of a children’s rhyme to discourage dishonesty.

 

You want to be very careful about lying;

otherwise you are nearly sure to get caught.”

   Mark Twain, advice to youth, per Speakola.

 

Just because something isn’t a lie does not mean that it isn’t deceptive.

A liar knows that he is a liar, but one who speaks mere portions of truth

in order to deceive is a craftsman of destruction.”

   Chris Jami, according to Goodreads.

  

 

Facts and evidence can be nettlesome things.

The latest new HUD Code manufactured home shipment data is in. And the timing couldn’t have been worse for the Manufactured Housing Institute’s (MHI) new video, which brags about how much they are doing to promote the sales of more manufactured homes.

Can you spell ‘embarrassing?’

 

For the second month in a row, the shipments of new HUD Code manufactured homes are down, albeit modestly. But during the same timeframe that Kevin Clayton, CEO of Clayton Homes, and MHI’s SVP Lesli Gooch have taken to mainstream and other industry news media (not us) to claim how manufactured housing is being embraced as a solution to the affordable housing crisis, the shipment levels have dipped two months in a row. 

Ouch. Embarrassing…

According to the latest data from HUD, and the analysis of the Washington, D.C. based Manufactured Housing Association for Regulatory Reform (MHARR), shipments declined .5 percent over the same month last year. 

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As MHProNews has alone been reporting to the industry’s professionals for months, there have been numerous warning signs on the horizon.

It’s not a disaster. But it is a cause for quiet concern among some of MHI’s larger members, and the independents alike. There are firms like Legacy Housing that in their recent IPO filing are reporting sales growth that bucks the national trend.  For more details on that, click the box below for that distinctive report.

Legacy Housing IPO, Lending Tree, & New HUD Ruling Updates

 

But the national data clearly reflects that overall, sales for the manufactured home industry at large have slipped. State data, as the Daily Business News on MHProNews has reported, reflects the fact that at least two of the top ten manufactured housing states examined have been losing sales, not gaining them.  One of those exclusive MHProNews reports is available by clicking the box, linked below, which has distinctive but related data with analysis.

 

Another Top Manufactured Home State is Sliding on New HUD Code Home Shipments, More New Data

 

One informed source with long ties to Clayton has said that there are troubling rumors coming from production centers tied to their parent company in Knoxville, TN. Time will tell.

And this two month dip arguably belies MHI’s razzle dazzle claims in their new video, just as the Daily Business News on MHProNews has been warning.  See the previously reported screen captures of the latest MHI video, presented as a collage, below.  Using their own data, taking them at their word, doesn’t it prove the latest national shipment report clearly demonstrate the opposite of what they are claiming?

 

ManufacturedHousingInstituteLogoMHILogoScreenCpaturesMHIvideostatisticalclaimsDailyBusinessNewsMHproNews 

 

Let’s make it simple.

   Over 1/3 of the U.S. are renters.  That represents millions upon millions of potential buyers.

   The National Association for Realtors (NAR) said earlier this year that the nation needs 8.3 million more housing units.

   The National Low Income Housing Coalition (NLIHC) says the nation needs for more affordable housing rental units have risen from 5.8 million to 7.2 million units, per Curbed.

   Manufactured homes are the most affordable kind of new permanent housing in the nation, per NAR’s 2018 research.

   Site builders are stalling on sales, due in part to rising costs and interest rates.

   All of the above are historic reasons why manufactured home sales normally should be rising.

   The RV industry went from trailing manufactured home shipments by 3 to 2 two decades ago, to now outselling manufactured homes by a ratio of some 5 to 1.

   If RVs could grow so much, why not MH?

   And yet given all of the bullets above, new HUD Code manufactured home sales are slipping nationally? Two months in a row?

   How can Kevin Calyton, Tim Williams, Richard ‘Dick’ Jennison or the MHI staff show their faces at Louisville with these troubling results?

 

See MHARR’s full report, by clicking the linked box below.

Production Flatline Continues in October 2018

 

See last month’s HUD Code shipment data by clicking the linked box below.

September 2018 Manufactured Home Production Data Shows Slight Flatline

 

See our pro-active step one of our manufactured housing solutions report from last night, by clicking the linked box below.

 

#$2Trillion U.S. GDP Growth via Affordable Housing Plan Few Discuss – Introducing #YimbyVictory2020

ManufacturedHmeIndustryAchieveGreatPotentialAddressingResolvingCauseCorePerceptionIssuesLATonyKovachQuotePresentationPhoto

When MHProNews spotlighted that MHI had reputedly done nothing on reaching out to the CFPB in 2017, MHI – perhaps in their embarrassment – began to move to get something done. When MHARR pushed MHI long enough on the DOE energy rule, MHI finally pivoted. It seems that MHI acts for the interests they claim to stand for best when the spotlight hits their lack of action otherwise. Will this story cause them to actually do what their video purportedly claims they do?

SoTheAssociationMHIIsNotThereFortheIndustryUnlesstheinterestsoftheBigBoysJointheIndustry'sMartyLavinMHIAwardWinnerQuoteMHProNews

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 or offer a cogent explanation?

To better understand the purported deceptions by Berkshire brands and the Arlington, VA based national trade group that they dominate, see the related reports, linked further below. We Provide, You Decide.” © ## (News, analysis, and commentary.)

NOTICE: Readers have periodically reported that they are getting a better experience when reading MHProNews on the Microsoft Edge, or Apple Safari browser than with Google’s Chrome browser. Chrome reportedly manipulates the content of a page more than the other two browsers.

(Related Reports are further below. Third-party images and content are provided under fair use guidelines.)

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3) Marketing, Web, Video, Consulting, Recruiting and Training Re-sources

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Related Reports:  Click the Boxes Below to Read More…

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Clayton’s Miss, Kevin and Tim’s Manufactured Housing Kill Shot, More

Machiavellian “Godfather” – Sam Zell, Warren Buffett, Capital, Lending and Crossed Lines in Manufactured Housing

 

 

National New HUD Code Manufactured Home Production Data Summary, September 2018 Analysis

November 8th, 2018 Comments off

NationalNewHUDCodeManufacturedHomeProductionDataSummarySept2018ReportAnalysisDailyBusinessNewsMHProNews

The most recent data collected on behalf of the U.S. Department of Housing and Urban Development (HUD) reflects a small dip in new manufactured home production.

 

According to information and analysis provided by MHARR, the following are the totals for September 2018.

Just-released statistics indicate that HUD Code manufacturers produced 7,519 homes in September 2018, a 0.8% decline from the 7,580 HUD Code homes produced during September 2017. Cumulative industry production for 2018 now totals 74,207 homes, an 8.4% increase over the 68,419 HUD Code homes produced over the same period in 2017,” said MHARR.  Their full report is found at the link below.

 

September 2018 Manufactured Home Production Data Shows Slight Flatline

 

The following graphic reflects the top 10 states, since the date shown.

 

ManufacturedHomeShipmentsSept2018DailyBusinessNEwsMHProNEws

 

Sobering Regional and State Data

As MHProNews alone has spotlighted in national manufactured housing trade media, several states are still sliding in shipment levels.  That includes some of the top producing states in the nation.  The industry’s professionals needs to ask and answer the question in their own market(s), with an affordable housing crisis, how can the industry not be doing much better?

 

New Shipment Data, Top Manufactured Home State, Other MH States Continue Slide

 

ICYMI, or need a refresher, see those 2 new, separate-but-related regional reports and analysis, at the links above and below.

 

Another Top Manufactured Home State is Sliding on New HUD Code Home Shipments, More New Data

 

These are post-production, marketing and sales related issues.

ManufacturedHmeIndustryAchieveGreatPotentialAddressingResolvingCauseCorePerceptionIssuesLATonyKovachQuotePresentationPhoto

Where is MHI or other industry leading firms on this?  See the related report, linked further below.  That’s MH “Industry News, Tips, and News Pros Can Use.” © where “We Provide, You Decide.” © ## (News, analysis, and commentary.)

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“Decline of Extreme Poverty in Perspective,” Infographic, Report

September 21st, 2018 Comments off

DeclineOfExtremePovertyInPerspectiveInfographicReportDailyBusinessNewsMHProNews

We’ve been trained by the media to think that things are always getting worse – including on subjects like poverty,” said Visual Capitalist in comments to the Daily Business News on MHProNews.

 

For example,” Jeff Desjardins wrote, “a recent survey showed that 87% of respondents thought that global poverty rates haven’t changed, or have gotten worse, over the last 30 years. However, the exact opposite is true.”

One billion people have been lifted out of extreme poverty since 1990,” the statement continued, with the provided infographic “putting the important issue into the context of data.”

We’ll look at the infographic, and then after, address how this can prove useful to managers, owners, investors and others.

DeclineInExtremePovertyVCInfographicGlobalPovertyDeclineDailyBusinessNewsMHProNews

To see or download the full sized infographic, click here.

 

Facts Matter, and Where Poverty Still Exists

The United States and the West has played a role in spreading rising incomes to much of the world, through trade, investments, grants, and aide. That doesn’t mean that there hasn’t been corruption or waste in those efforts. But it does reflect that conditions have steadily improved.

Let’s briefly note that third world countries have a keen interest in prefab housing.

The chart above doesn’t specify the causes behind why extreme poverty still exists.

FurniPodMiniLoftPrefabHomesThirdWorldCompaniesDailyBusinessNEwsMHProNEws

The videos above and below are for illustration purposes only. The closing still below is interesting, as those are solar panels on the roofs of those prefab units.

Dedicated Daily Business News on MHProNews readers know that Venezuela, North Korea, Cuba, and Haiti are among the nations where it is found, and the causes are often tied to their governments. Rephrased, nations with severe corruption and socialism are key causes.

But so too are areas impacted by war, narco-terror, and other terrorist-connected activity.

The related reports are important to consider, as you share these with team members or those you know that may be influenced by the rising belief – especially among millennials – of socialism in the U.S. See too the videos on Poverty, Inc., Shadows of Liberty, and more in the related reports, linked below.

UnitedStatesGeneralElectionsDailyBusinessNewsMHProNews

There’s only 46 days to the midterms, and early voting has already started in some areas. Information shared is ballot box potential power. “We Provide, You Decide.” © ## (News, analysis, and commentary.)

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Racism – Getting Increasing Prosperity, Stability, Safety, and Certainty

Report: Manufactured Housing Institute (MHI) Follows Prior MHProNews Lead

September 20th, 2018 Comments off

 

FollowTheLeaderManufacturedHousingInstituteLogoMHILogoPivotsFollowsMHProNewsLeadGraphic

A state association member forwarded the following news tip to MHProNews for commentary and analysis, which reflects an interesting pivot by the Manufactured Housing Institute (MHI).

 

The Manufactured Housing Consensus Committee (MHCC), met last week, as the Daily Business News recently reported. Per HUD, the MHCC is a federal advisory committee.

More specifically, under the Manufactured Housing Improvement Act of 2000 (MHIA), HUD is charged with gaining approval from the MHCC for various changes and updates to regulations.

According to MHI to various state associations, the “…MHCC approved language for submission to the DOE in response to its Notice of Data Availability and request for information for an energy conservation standard for manufactured homes.” The Manufactured Housing Institute (MHI) “has argued HUD should have exclusive jurisdiction over all manufactured housing construction standards, including standards for energy efficiency.”

MHI arguably should have publicly given credit to MHProNews for promoting that position to HUD in published comments submitted by this publication to regulators earlier this year. MHI sources tell MHProNews that their leadership routinely reviews ‘everything that you (MHProNews) do.’

Whatever prompted their pivot – perhaps ongoing publishing pressure of the logic from the Manufactured Housing Association for Regulatory Reform, MHProNews, and/or other industry voices – MHI did make that move last week.

During the meeting, MHI encouraged the MHCC to ensure that the DOE does not move forward with any rulemaking without consultation and guidance from HUD and the MHCC.”

Additionally, MHI expressed concerns to the MHCC about a previous DOE proposed rule for energy conservation that would have created excessive compliance and cost burdens on manufactured housing that outweighed any consumer benefit,” per their emailed statement.

That last line is a textbook definition of chutzpah and hypocrisy, as MHI is on record for previously encouraged the DOE energy rule. One of several possible documentary examples is captured in the item below.

The MHI leadership should know by now that they will be fact-checked on such misleading-at-best, or arguably false, claims.  See the prior report, referenced below, that further documents how MHI previously supported costly energy standards before they finally relented to their current, more moderate, position.

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

Per MHI, “The MHCC also approved language stating that “any proposed energy standard must not conflict with HUD standards, which are preemptive” and that the DOE “must work with HUD to develop a clear compliance path to avoid overlapping or conflicting regulations and ensure feasibility, cost effectiveness and clarity.”

MHI leaders, better late than never in following MHARR and MHProNews’ lead?

Apparently missing from MHI’s comments to their mailing list is a related topic to this forwarded tip.  That is the pressure on DOE from the Sierra Club lawsuit. See that under related reports, further below. Bottom line?  They still have plenty of work to do. “We Provide, You Decide.”  © ## (News, analysis, and commentary.)

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Related Reports:

Will Costs Rise $6,000 per Home? DOE Energy Rule on Manufactured Housing Revived, MHARR Rattles Legal Saber

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

72% Blue Collar Workers “Optimistic,” White Collar and More Insights from Porch/Examiner Poll Report

September 14th, 2018 Comments off


PorchWashExaminer72%BlueCollarWorkersOptomisticWhiteCollarSentimentDailyBusinessNewsMHProNews

 

The Washington Examiner recently reported on a survey commissioned by Porch on worker sentiments.

 

Porch is a free online network that links homeowners and repair, renovation. and cleaning professionals.  Their research found concerns about robotics and automation.  That’s a topic that the Daily Business News on MHProNews has reported on several times in recent years, see related reports, further below.

JobSentimentByOccupationClassificationPORCHJobsurvey2018WashExaminerDailyBusinessNewsMHProNews600

But the new survey found “That recession driven grimness hanging over the workplace has lifted and now workers of all shades are feeling good about their future,” said the Washington Examiner.

PerceptionsByWorkerClassificationPORCHJobsurvey2018WashExaminerDailyBusinessNewsMHProNews600

The polling said that 72 percent of blue collar workers and 76 percent of white collar workers are optimistic about their future.

Many workers feel they can find another job easily.  That was confirmed by the latest JOLTs report, see that further below.

SentimentByWorkerClassificationPORCHJobsurvey2018WashExaminerDailyBusinessNewsMHProNews600

The survey found that most blue-collar and white-collar workers are happy, feel respected, and like each other.

Consumer confidence, manufacturers, and business confidence have also been on the rise, as MHProNews has been tracking those trends since the election of President Donald J. Trump.

See the related reports, further below.  This is another survey that may suggest a trend counter to what political polling is indicating, and thus is important to manufactured housing investors and businesses. “We Provide, You Decide.” © ## (News, analysis, and commentary.)

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Manufactured Housing Industry Facts, It’s About More, Per Economic Expert’s Insight

August 1st, 2018 Comments off
AffordableHomeOwnershipManufacturedHousingIndustryDailyBusinessnewsMHProNews550x315

The top right graphic is an example of a useful MHI data point. The “Wheat and Chaff” is the wise way to a approach any information source. Keep the good, reject what’s not.

There appears to be considerable confusion about a variety of facts regarding modern manufactured homes, as well as the manufactured housing industry. Why?  Let’s tee up this topic, before diving into this relevant research, and today’s timely fact check.

 

Accurate Information Matters

When reading mainstream media reports, or research being done by third-parties at non-profits, universities, etc., there are often modest to significant errors found about manufactured homes.

During live presentations, hundreds of industry professionals have been asked by our publisher a variation of this question. ‘Does misinformation about manufactured homes (MH) hurt our MH industry’s sales?

Routinely virtually every hand in the room will go up.

So, by an almost universal acceptance by those motivated enough to attend a seminar, accurate information about MH matters.

The reputation of the MH industry – and to an extent, its integrity – can be influenced by the accuracy of the data about manufactured homes.  Rephrased, inaccurate information logically hurts sales, and harms our industry’s image.

Before diving into the focus of this particular fact-correcting analysis, the Daily Business News will remind readers about this potent fact check about tornadoes.  If the general public realized that the odds of not dying during a tornado in 2017 were over 1 million to one in favor of the MH resident, wouldn’t people feel more confident about buying a manufactured home?  Just think, only 1 out of a million died during a tornado in 2017.

Per room after room of raised hands by industry professionals during live seminars, thousands of industry pros believe more of the public would by a manufactured home, based upon accurate information.

“Even When We Had a Hurricane, It Wasn’t This Bad,” Profitably Decoding Post-Windstorm, Survivor of Possible Tornadoes Statement, Impacting Manufactured Home Community, Manufactured Housing Industry

Nevertheless, to date, only MHProNews and MHLivingNews have routinely promoted that kind of data, which is based upon National Weather Service’s reporting.

CompareMobileHomeTrailersPastManufacturedHomesSaferMoreDurableQuoteScholasticiaGayCororationPhotoSmallPercentageDamagedDuringHUrricanesMHProNews

The good news is that some state associations and the NAR (see above) have started to address this, as the report linked above noted.

So, accurate information matters. It matters to:

  • Investors,
  • Bankers,
  • Public officials,
  • Professionals in or considering the manufactured home industry,
  • Affordable housing advocates,
  • Economists,
  • Media,
  • Policy makers, staffs, politicos,

and the public at large.  Accurate information is presumably why MHI wants members to fly-in once  a year to Washington, D.C.  and hand out information packages to staff and members of the House and Senate in the Congress.

 

Why Is There So Much Misinformation About Manufactured Housing?

What contributes to, or is the origin of, some of those factual questions and concerns from third parties?

Let’s note for accuracy and fairness that no one source is fully responsible, nor is any one professional exempt, from striving to learn and accurately share the facts about the modern manufactured home industry.  We value input from our readers, and when an error is spotted, we want to correct it.

Each person reading this is to some degree, is either part of the solution, or part of the problem. That’s reality.

The Daily Business News will look at what should be a simple issue, which regrettably is being mistakenly proclaimed in error to the public, policy makers, influencers, and the media.

Let’s look at a recent data-dispute, and the facts about manufactured housing’s contribution to the U.S. Gross Domestic Product (GDP).  The GDP of an industry helps others measure its significance.  The larger the GDP, the more important the industry.

The Manufactured Housing Institute (MHI) has said that manufactured housing’s contribution to the United States of America’s (USA) Gross Domestic Product (GDP) is “almost $3 Billion dollars.”

Others, depending on MHI’s data, then repeat that claim.

But is that MHI figure, previously disputed several times by MHProNews, accurate?

We asked the National Association of Realtors (NAR) Scholastica ‘Gay’ Cororaton, Certified Business Economist (CBE), to explain how GDP is calculated.

Does GDP use wholesale or retail sales figures?  Note, ICYMI, the report linked below reflects corrections made about manufactured housing by Cororaton in a NAR report.  She as an economist understands accuracy, and has made corrections as needed herself, and thanked those who helped with those corrections.

Realtor University, Journal for the Center of Real Estate Studies, Makes Corrections– “The Market for Manufactured Homes,” by Scholastica ‘Gay’ Cororaton, CBE

Here was her on-the-record reply was to MHProNews.

GDP is measured at the retail price because the retail price determines what  the FINAL user spends.  Not wholesale price because wholesalers still sell to retailers, who then sell to consumers (as the final users),” said economist Cororaton.

She added that “The final users can be consumers, businesses (for fixed investments and inventory), the government, and foreigners (exports).” What that means in part is the sale of FEMA units to the federal government is part of the GDP.

However, the price of imported goods are excluded (GDP is a measure of domestic production),” NAR’s Cororaton said.

ScholasticaGayDCororatonDBEResearchEconomistNationalAssociationRealtorsWashDCManufacturedHousingIndsutryDailyBusinessNewsMHProNews507

Composite information from LinkedIn.

She then pointed us to additional authoritative evidence, in the form of the Bureau of Economic Analysis (BEA).

The BEA recently provided MHProNews with the latest GDP data, cited by the Trump Administration in saying that the GDP in Q2 was up 4.1 percent. It doesn’t get more official than the BEA, does it? Cororaton emailed a BEA primer on the issue, available as a download, linked here.

MeasuringTheEconoimyBureauofEconomicAnalysisDailyBusinessNewsMHProNews

This is an authoritative reference on calculating GDP, per Certified Business Economist CBE, Scholastica ‘Gay’ Cororaton.. To download the report, click here.

 

MostMenAppearnNeverConsideredWhatHouseIsNeedlesslyPoorAllTheirLivesHenryDavidThoreauManufacturedHomeLivingNews

Many who first explore manufactured housing say or wonder, “this sounds too good to be true.’ Manufactured housing professionals must understand and anticipate that reality. Part of the secret is accurate information, not hyped or error plagued information. For newcomers to the website not familiar with modern manufactured homes, learn more by clicking the image above or the link here.

 

Why Does this Matter to MHVille? Just the Facts…

For some time, MHI has been publishing information that far undervalues the industry’s contribution to the GDP.

Using MHI’s own information, which has rounded up in some cases, the correct GDP – per the BEA’s and CBE Cororaton’s formulas – would be over $6.5 billion a year, not “almost $3 billion…”

 

GeneralINdustryProfileManufacturedHousingIndstiutteMHIDailyBusinessNewsMHProNews

This is “updated” in June 2018, but still has errors. Note, there are improvements from some prior fact-checks by MHProNews, but still several errors. How are third parties to know what is accurate about the MH Industry?

Not only is that a more accurate total, but isn’t $6.5 billion more than twice as impressive as “almost $3 billion” for the manufactured home industry?

Then why does MHI use an arguably flawed, and inaccurate total for the industry? Remember, MHProNews has published a higher, more accurate estimated GDP previously and brought that figure to MHI’s attention.

Now that an respected economist with NAR is confirming the correct formula, will MHI finally change that erroneous, embarrassing, and industry diminishing, claim? Will MHI check their math, and make the necessary corrections?

 

Only Two Possibilities

1)        MHI can ignore the error, as they have other mistakes and apparent spin or hypes about some of their claims (think S 2155, for a regulatory example). An example is the correct count on communities. Once more, it’s MHI’s own members, past and present, that have said their current manufactured home community count is too low.  Their June 2018 data, reflects a change that is still inaccurate.  Why?

Frank Rolfe, Dave Reynolds, George Allen, Manufactured Home Community Controversy Continues

 

Note that when we published that article linked above, MHI said that the count was “37,524 land lease communities.” In their June 2018 updated graphic, shown above, they now say almost 40,000.”  Why not make a more complete and accurate correction?

As a result of their ongoing unwillingness to correct such data points, not only media and researchers, but corporations have published incorrect information to potential investors.

So, based upon past experience, it is entirely possible that MHI will ignore the facts, and keep claiming a data point that’s debatably embarrassing to the industry. Or:

2) MHI can do what’s right, and make the correction, which is the minimum that they should do. But will MHI do as NAR’s Cororaton did, and credit the sources for the correction?

ScholasticaGayCororatonCBENARRevisionsRealtorUniversityDailyBusinessNewsMHProNews598x493

Accuracy matters, and giving credit to sources matters to third parties. “The time is always right to do the right thing.” – Martin Luther King, Jr.

Adults make mistakes.

But don’t mature adults admit error, make corrections, and then move on? What will MHI do? What will their action or inaction say about the organization? How will MHI’s actions reflect upon the industry?

Two state associations have broken ranks with MHI, over their stated concerns that MHI has failed to represent their interests.  More recently, they’ve launched a new national communities association (see related reports, linked further below).

State Associations, Companies Quit Membership in Manufactured Housing Institute, (MHI), One Explains in Writing, ‘Why?’

Why would MHI understate, after they’ve been informed previously about the error?  How can they claim it is accidental?  What other reason might make sense?  Could it be that they are trying to understate the industry’s size, to discourage new entries into the industry? Isn’t that similar to what MHI President, Richard ‘Dick’ Jennison did by understating the industry potential for more rapid growth? What CEO of a national association argues for slower growth? It sounds pretty to say ‘sustainable,’ but the industry sustained several times this sales level in the past. Who benefits from slow growth?  What normal non-profit organization rewards a CEO like that, with a bonus, contract extension and more pay?

 

A respected non-MHARR industry voice has challenged retailers to organize and leave MHI, similar to what communities are starting to do. He believes that the majors have “weaponized” certain aspects of national association’s work, using these words:

“…If retailers would bow up and tell the MHI manufacturers they want dues paid to a new association rather than MHI there will be change. I do believe the majors have weaponized regulation that further entrench their companies or widens and deepens their moat. Keep my name off it please but I’ll support the efforts if [there] is enough backbone out there.”

MHI members are encouraged to get MHI to change their incorrect reporting of data, just as they are encouraged to get them to be more transparent on other past errors.  See the Howard Walker related report, linked below.  Is there any excuse for repeatedly making the same mistakes?  “We Provide, You Decide.” © ##(News, analysis, and commentary.)

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Related Reports:

New Manufactured Home Industry National Association Related Statements

Howard Walker, Mensch – Equity LifeStyle Properties (ELS), Manufactured Homes Retrospective

‘Tip of Iceberg’ – Rick Rand; Marty Lavin, Communities have ‘No Confidence’ in Manufactured Housing Institute, New National Trade Group Announced

Freedonia Group’s Comprehensive Incursion into Manufactured Housing

July 24th, 2018 Comments off

 

FreedoniaGroupManufacturedHomeCommunityComprehensiveIncursionintoManufacturedHousingDailyBusinessNewsMHProNews

The truth is often hiding in plain sight. Who says?

 

 Sometimes the best hiding place is the one that’s in plain sight.” – Stephanie Meyer, per AZ Quotes.

 

I’ve found that wherever there is one cockroach in plain sight, many more are lurking behind the corner out of view.” – Harry Markopolos, according to AZ Quotes.

 

The most dangerous and successful conspiracies take place in public, in plain sight, under the clear, bright light of day — usually with TV cameras focused on them.” – L. Neil Smith, per AZ Quotes.

 

The Freedonia Group is one of several deep incursive dives into manufactured homes (MH) and other types of prefabricated housing. This Daily Business News analysis uses their public data, and is not to be construed as an endorsement – or questioning – of either their statistics or methods.

Rather, what this Daily Business News report will do is examine what Freedonia said about the manufactured housing industry in their own words, along with what they see as MH potential, and trends.

 

FreedoniaGroupLogoManufacturedHomeCommunityDailyBusinessNewsMHProNewsLogo

From Freedonia, provided under fair use guidelines.

Manufactured Housing Industry Continues to Consolidate – “Destabilizing  

The name of their article – which was brought to the attention of MHProNews last year by several emails and other electronic tips – is “Manufactured Housing Industry Continues to Consolidate.”

They pointed to the Manufactured Housing Institute (MHI) as their source for saying:

Manufactured housing is a significant portion of the US housing market, making up about one-tenth of new single-family housing in recent years.  However, the industry’s slow recovery from the economic recession and decreased access to credit for buyers has limited growth in demand for new units and created a competitive environment among producers; one that is destabilizing for many small manufacturers,” wrote Mariel Behnke.

Behnkeis an Industry Analyst at The Freedonia Group, where she covers the US and global construction and consumer products industries,”  stated Freedonia’s brief bio of their author.

As a result of the “destabilization,” Freedonia said, “Consequently, the industry has become increasingly concentrated as small producers close or are acquired by larger manufacturers.  In 2015, the three largest producers of manufactured homes controlled over 70 percent of the US market, a share that has grown in recent years.”

 

As MHProNews has previously reported, with the recent merger/acquisition of Skyline and Champion – the top 3 producers in the summer of 2018 – reportedly hold some 80 percent of the HUD Code manufactured housing (MH) industry’s production capacity.

 

MarielBehnkeLinkedInPhotoProfileIndustryAnalystFreedoniaGroupManufacturedHousingIndustryDailyBUsinessNewsMHproNews

Composite collage from LinkedIn.

 

Cavco Industries Market Share Expansion

In 2015, Cavco Industries acquired Fairmont Homes, a significant producer of manufactured homes in its own right.  The acquisition helped Cavco Industries expand its position in the Midwest market through Fairmont Homes’s manufacturing locations in Indiana and Minnesota.  Because of its visibility in the industry, Fairmont Homes continues to operate as an independent brand.  Cavco Industries also acquired Chariot Eagle, a smaller producer of manufactured homes and recreational vehicles with operations in Florida,” said Behnke.

These acquisitions have allowed Cavco Industries to position itself as one of the country’s largest producers of manufactured homes.  Additionally, they have allowed Cavco Industries to become more horizontally integrated, expanding its offerings of both modular homes and recreational vehicles,” according to Freedonia’s research.

 

Clayton Homes Acquires Producer and Retail Locations

LegacyManufacturedHousing-LiquidationEvent-image

Click the above to learn more.

Clayton Homes, a subsidiary of Berkshire Hathaway, made several small acquisitions during 2016, expanding both its leading market position in manufactured home production and its network of company-owned retail locations.  In April 2016, the company purchased River Birch Homes.  Its plant became Clayton’s 37th operating manufacturing facility and offers a strategic location in Alabama, near several of the country’s largest state markets for manufactured homes.  In 2016, the company also acquired two distributors, adding a total of seven retail locations to its network of over 300 company-owned outlets,” per Freedonia.

 

Freedonia’s Projections for MH?

Growth in manufactured home shipments is expected to lag that of the overall single-family housing market. While single-section manufactured homes,” said Behnke, “which saw their share of manufactured housing shipments rise during the economic downturn can expect stagnant change through 2020, shipments of double-section manufactured homes are expected to see relatively healthy gains, and will account for over three-fifths of all manufactured housing shipments in 2020. Manufactured homes with three or more sections will remain a marginal share of the market.”

While one can debate the projections, Freedonia said: “Ongoing growth in the housing market will support rising demand for prefabricated housing – the penetration rate of prefabricated housing units in the general housing market is expected to decline slightly going forward. 

They said much more, and for $4,600 someone can purchase their full ‘deep dive’ report. Why does Freedonia say their research should be trusted?

LowerMonthlyPercentCostManufacturedHomesConventinoalHouseRentalHousing2016narRealtorUDaiyBusinessNewsMHproNews

The above is from Scholastica “Gay” Cororaton’s newly updated NAR research report, to learn more, click here. What Freedonia’s research, NAR or others should spark is this question. With facts so strongly in favor of manufactured housing, and the need is so great in almost every market, why are new manufactured home shipments still so low?

 

About the Freedonia Group

The Freedonia Group is a leading international industry market research company that provides its clients with information and analysis needed to make informed strategic decisions for their businesses. Studies help clients identify business opportunities, develop strategies, make investment decisions and evaluate opportunities and threats. Freedonia research is designed to deliver unbiased views and reliable outlooks to assist clients in making the right decisions. Freedonia capitalizes on the resources of its proprietary in-house research team of experienced economists, professional analysts, industry researchers and editorial groups. Freedonia covers a diverse group of industries throughout the United States and other world markets,” per the company.

Freedonia’s literature also notes that they’re a division of MarketResearch.com, “With offices in London, New York City, and Washington D.C., MarketResearch.com is the leading provider of global market intelligence products and services. With research reports from more than 720 top consulting and advisory firms, MarketResearch.com offers instant online access to the world’s most extensive database of expert insights on industries, companies, products, and trends.”

 

Why Does it Matter to MHVille, or Investors?

The short answer is that Freedonia’s data largely parallels the conclusions of distinct and similar information previously researched and reported by MHProNews.

Nor are Freedonia or MHProNews alone. 

  • GuruFocus went a step beyond, and pointed to Berkshire Hathaway and their manufactured housing brands Clayton Homes, et al, as being examples of Warren Buffett’s “strategic Moat” as a means of creating a monopoly. 
  • The Seattle Times expressed it differently, but likewise thinks their brands behave as a monopoly.  The Seattle Times said several federal investigations against Clayton and Buffett’s Berkshire brands are underway.

 

The Atlantic reported on and projected years ago the continued consolidation of the industry, which Freedonia now recaps.

 

The Nation cited Warren Buffett and Clayton Homes as monopolistic, as has CFED turned Prosperity Now in calling their lending arms 21st Mortgage Corp, and Vanderbilt Mortgage and Finance (VMF). monopolies in American Banker.  That’s one MHI’s Lesli Gooch leapt to defend against. So why hasn’t so Gooch or anyone else at MHI tried to publicly defend or debate that claims and allegations published here?

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

No guts, no glory.  The Urban Institute asked some of the same questions we do, only they came to a slightly different conclusion.  They also failed to mention their ties to Buffett, or that MHI and Clayton had taken part as undisclosed sources in their report. Coincidences?

Urban Institute Ask for Correction in Analysis of their Manufactured Housing Research, “Follow the Facts,” “Follow the Money”

Maxine Waters and other Congressional Democrats called Clayton and their lenders a “near monopoly,” and leveled charges of racism, the later charge Clayton denied.

 

CongressAsksDOJInvestigateClaytonHomesCreditTwitterWikipediaMHProNews

See report, linked here. U.S. Representatives Maxine Waters (D-CA), Keith Ellison (D-MN), Emanuel Cleaver (D-MO), Mike Capuano (D-MA). Image credit, Twitter, Wikipedia.

What all of these threads – knowingly or not – point to similar conclusions to what MHProNews has been independently analyzing reporting and for MH industry readers and researchers for some time now. 

Thus, the growing number of such reports makes it increasingly difficult for those in MHI or with a Berkshire brand to deny what so many see as the self-evident truth.

21stMortgageCorpLogoLetterheadJan302009TimWilliamsRetailersBrokersCutSpecifiedLendingMonopolisticPloyConcernManufacturedHomeDailyBusinessNewsMHProNews

This document was provided as a news tip to MHProNews. To see Smoking Gun 3, click below.

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

 

MHI-21stMortgageKevinClaytonClaytonHomesManufacturedHoomeCorporationsPlantsDailyBusinessNewsMHProNews_001

While several media outlets have reported on the apparent monopoly so many a allege, to date, only MHProNews has documented how that Berkshire strategic moat has worked in practice. Tim Williams, Warren Buffett and Kevin Clayton – and MHI – supplied the evidence, using their own words. http://www.mhpronews.com/blogs/daily-business-news/was-the-urban-institute-misled-duped-or-part-of-a-manufactured-housing-industry-scam/

While some outside media and sources in or out of the HUD Code manufactured home industry have called the Manufactured Housing Institute (MHI) a tool of Berkshire, what they have not yet done is verify that most state association executives are unwilling to publicly contradict any MHI dictum.

The reasons, later confirmed by additional industry sources, are in the Gold Rules report linked above.

 

The Bottom Lines?

While the Manufactured Housing Association for Regulatory Reform (MHARR) has raised similar issues, most of the industry’s trade media are largely silent on the topics of consolidation and control of the industry.

Only MHProNews has provided the documents and videos that spell out in

   Warren Buffett’s,

   Clayton CEO Kevin Clayton,

   21st Mortgage CEO and former MHI Chairman Tim Williams

    each in their own words – describe how choking off capital and credit arguably forced the consolidations that Freedonia or others cited above have noted.  See the charts, videos and links from this article for more insights, evidence, and details. 

 

Hiding in Plain Sight

So isn’t all of that the uncomfortable truth, hiding in plain sight?

MHVillage, has debatably become a de facto publishing mouth piece for MHI.

Frank Rolfe, who previously criticized MHI, stopped doing so. Did it have anything to do with Berkshire Hathaway brands upping their financial connections with “Frank and Dave” Reynolds trade communications, and related operations. Was it a coincidence that more cash brought about their silence?

Frank Rolfe Blasts MHI for Poor Media Engagement, Industry Reactions

Other trade voices have been previously examined by MHProNews. One trade publisher frankly admitted to the Daily Business News that what we publish is what others of thousands are talking about, but no one else will write about as we have. 

Another publisher said just last week that he liked our new format. But they’re getting apparently paid by MHI, and so they too are largely silent on the topics which matter to independents. 

Two state associations, not as beholden to Berkshire as others, quit MHI last year, and are now formalizing a new national trade body for communities.  That’s a vote of no confidence.

New Manufactured Home Industry National Association Related Statements

Isn’t the truth about MHI acting as a tool for domination – by what MHI award winner Marty Lavin called “the big boys” – increasingly self evident?

‘Tip of Iceberg’ – Rick Rand; Marty Lavin, Communities have ‘No Confidence’ in Manufactured Housing Institute, New National Trade Group Announced

That’s a question Freedonia didn’t publicly answer. But isn’t it a reasonable conclusion, based on growing consolidation?

Note again how their research put it, ”…decreased access to credit for buyers has limited growth in demand for new units and created a competitive environment among producers; one that is destabilizing for many small manufacturers,” wrote Behnke.

Isn’t that Smoking Gun 3 in a nutshell? Isn’t the consequence of Buffett’s strategic Moat? 

A new, related Daily Business News report will be forthcoming.

Meanwhile, linked reports will provide details and context found no where else in MHVille, or beyond. That’s “News Through the Lens of Manufactured Homes, and Factory Built Housing.” © Where “We Provide, You Decide.”  © ## (News, analysis, and commentary.)

(Third-party images and content are provided under fair use guidelines.)  See Related Report, Linked Below.

 

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To report a news tip, click the image above or send an email to iReportMHNewsTips@mhmsm.com – To help us spot your message in our volume of email, please put the words NEWS TIP in the subject line.

1) To sign up in seconds for our MH Industry leading emailed news updates, click here.EmailedMHProNewsHeadlineNewsDailyBusinessNews

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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.

 

 

 

 

 

 

What are the FACTS about Manufactured Housing Industry Traffic vs. Real Estate? MHVillage, MHProNews, Manufactured Housing Institute Data

Lawsuits for Triple Damages – Anti-Trust, Anti-Monopoly Law, Manufactured Housing, and You

Town’s Stance Against “Mobile Homes” Caused Division, Uncertainty – MH Association Reacts, Video, Report

July 20th, 2018 Comments off

WelcometoMcBeeMarkDillardSCManufacturedHousingInstituteDailyBusinessNewsMHProNews

In May, the McBee Town Council passed a temporary moratorium on manufactured homes from being placed in that town’s city limits.

 

WISTV reports that the motion read, “Mobile Homes are prohibited from being placed on any lot within the town limits of McBee, South Carolina and any current uninhabited mobile homes cannot be occupied and that the Mobile Home Ordinance will be reviewed and updated within the next 90 days.”

I’m a single mother of four kids. I’m going to try not to cry,” said Carrie Johnson, with her voice faltering with emotion. “I’m mad, I’m angry, and I’m hurt.”

Johnson, and her four daughters had been living in two-room single section home, stated WISTV, but then she got good news: a plan to rent a double wide1 and move it to the small town of McBee.”

I’ve seen pictures of it, and it’s beautiful. To me, it would be their mansion,” she said of the manufactured home.

The sudden controversy has caused some like Johnson to feel less than welcome, said WISTV. The resident feels like she’s thought of as “trailer trash” or a “second-class citizen” in the Town of McBee, “a town where some estimate there are more mobile homes1 than stick-built homes.”

But Johnson says that slice of her American Dream is now uncertain, due to McBee’s planned change in their ordinance.

According to a councilman Kemp McLeod, McBee simply isn’t discriminating at all. “It’s not the intent of the town to judge anybody,” he said. The town needed to make sure manufactured homes weren’t blocking right-of-ways, were hooking up to the water system correctly, and weren’t devaluing homes already here.

But that councilman’s statement reflects a common mistaken notion is disproven by Trulia and a study by two economic researchers, previously reported in the report linked below.

YIMBY vs. NIMBY, Obama Admin Concept Could Unlock $1.95 Trillion Annually, HUD & MH Impact

McLeod’s comment also represents a potential unjust taking, as was a decision in a recent court ruling in a high court ruling in Iowa.

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

 

Associations, Associations…

The Manufactured Housing Institute of South Carolina is working with the city officials in McBee,” said Mark Dillard, Executive Director Manufactured Housing Institute of SC (MHISC) to the Daily Business News on MHProNews.

We’ve offered to help them put together an updated manufactured home ordinance.  We’ve always found it works well to get with officials during the early drafting stage,” Dillard said.That’s when you can have the most influence.”

That fits with what MHISC’s Ed Schafer said to MHProNews in 2016, who’s praise for forward looking towns hints that there are others that aren’t so open minded.

Zoning, Opening up Urban Infill and Making Sure Citizens who want Manufactured Homes are Heard

 

But the battles in South Carolina – which has one of the highest percentage of manufactured homes in the housing stock – rages on there, and elsewhere in the U.S. too.

ManufacturedHousingShareofOccupiedHousingUnitsBystateCFPB2014WhitePaperManufacturedHomeIndustryDailyBUisnessNewsMHPronews

Third-party researchers who’ve been contacting MHProNews have asked variations of the following question. ‘Given the national scope of the problem, isn’t this something that a national trade association should be addressing?’

Fair question. Two MHI connected sources suggested to MHProNews today that MHI has not taken any apparent interst in the McBee matter.

It’s one of the reasons why the Washington, D.C. based Manufactured Housing Association for Regulatory Reform (MHARR) has said that a new national post-production association is needed to supplant what is often seen as the failures of the Arlington, VA based Manufactured Housing Institute (MHI) from habitually acting.

Those failures aren’t new, argued former MHI award winner, Marty Lavin, who explained that MHI has long worked in favor of the interests of their largest members.

‘Tip of Iceberg’ – Rick Rand; Marty Lavin, Communities have ‘No Confidence’ in Manufactured Housing Institute, New National Trade Group Announced

Long time, now former, MHI member George Allen recently said that the problem with MHI is summed up as “Perennial corporate consolidation and power plays among far too few elite producers of HUD-Code manufactured homes, along with far too few purveyors of chattel capital…”

ManufacturedHousingIndustryMonopoly-Oligarchy-GeorgeAllen-PostedDailyBusinessNewsManufacturedHousingIndustryMHProNews-

The graphic above was a prior set of similar comments by Allen, who regular Daily Business News readers know has some of his own controversies.

While some might quibble over Allen’s conclusion, the problem he described echoes a point Sam Zell has also made.  High regulatory barriers results in more consolidation.

ELS’ Sam Zell – Compliance Costs Destroys Smaller Businesses = Consolidation

But beyond the cost to business, is the far higher cost to would be manufactured home owners.

MHI in recent years has responded only after months, or years, of pressures from within the industry, per voices inside and outside of that trade body.

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

That failure to provide genuine representation is among the reasons why the Arizona and Nevada community owners associations have launched their own national body with a focus on communities.

State Associations, Companies Quit Membership in Manufactured Housing Institute, (MHI), One Explains in Writing, ‘Why?’

The steady spread of local jurisdictions attempting to zone out, or outright ban, manufactured homes has led a non-profit to take legal action. For more on that, see the related report, linked below. “We Provide, You Decide.” © ## (News, analysis, and commentary.)

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

Footnote 1: typo or terminological error is in the original WISTV report. As LMHA’s Steve Duke, JD, has said, “The terminology matters because the terminology defines the construction standards.” 

SteveDukeLMHATheTerminologyMattersBecausetheTerminologyDefinesTheConstructionStandardsDailyBusinessNewsMHProNewsMHLivingNews1

http://www.mhmarketingsalesmanagement.com/blogs/daily-business-news/your-words-matter-proper-terminology-for-factory-built-homes/

Related Reports:

“’Trailer Trash’? Watch Who You’re Insulting When You Throw Around Those Words” – Buffalo News

 

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

“Trailer House Trauma,” Fresh Look at Manufactured Housing’s Opportunities

1) To sign up in seconds for our MH Industry leading emailed news updates, click here.EmailedMHProNewsHeadlineNewsDailyBusinessNews

2) To provide a News Tips and/or Commentary, click the link to the left. Please note if comments are on-or-off the record, thank you.

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.