Let’s start by tipping the hat to:
> Manufactured Home (MH) Retailers who are selling homes at the best rate in years;
> MH Communities, that are watching their occupancy rise;
> MH (and modular) Builders who are producing homes with astonishingly few consumer complaints;
> Suppliers, service, installers and associations that day-by-day do what it takes for our consumers, business and MH homeowners.
> The national and state associations deserve credit for getting HR 650 passed by such a wide margin.
Associations deserve credit every time they jump in and help turn around some unfair zoning or other unjust treatment of MH in their area, as the TMHA recently did. We encourage every state and community association to send us their ‘victory’ stories, because there are many. The industry needs to know how often MH associations actually win for homeowners and professionals.
We should add a special mention to DataComp and NADA. Both organizations made significant commitments to the MH industry to meet the new CFPB appraisal rule on schedule. What that means is that retailers, brokers, communities and lenders have an affordable way to meet the new federal rules that went into effect July 18, 2015.
We are 5 years into a recovery. Is all of the above progress? Of course it is.
GE used to use the tag line, “Progress is our Most Important Product.”
Let me suggest that in MH, we should also celebrate progress as a key goal. We should be pleased that we are 5 years up from the total gloom of 2008, from predictions of industry demise by IBISWorld or The Atlantic or others that heaped doom on our MHIndustry.
But is the level of our progress enough? Are we doing what is possible?
The truth is, we’re barely scratching the surface of our industry’s potential. We’re still suffering from the high cost of low volume sales. Yet the CFPB’s director and others like to point to the false notion the modest rise in sales indicates we must be doing well as an industry; which he then implied means we don’t need regulatory relief, since some companies are profiting and shipments are going up.
If Richard Cordray said that to me, I’d say as politely as I could, “What utter nonsense, sir!” We need but look back to 1998, to see that we were doing 5 times more sales then vs. now. That reminds us how far the industry has slipped. A growing number of newcomers – rank and file, owners or management – in our industry entered the biz since 2008 – and have never known good times for MH. If they aren’t reading here or something similar from a positive state MH association, they may not know that MH is capable of being so much more than it is today!
But let’s be candid.
The 90’s weren’t perfect by a long shot for MH. Bad chattel deals cost us then, and still do today. We were making inroads into mainstream housing then, we lost an edge. We must work to get it back!
Indeed, today’s MH lenders do a fine job of making good loans to people who can afford them. As Dick Ernst has said publicly, our industry has no practical limit to its capacity for making good loans to people with good credit. Its the lower credit scores that have always been, and will always be, tougher to make and service. Our MH strategy has to include getting more site-built qualified consumers.
We in MH have a Great Stories to tell…But…
One problem is that too many in MH settle for the crumbs, instead of bellying up to the housing feast (see graphic above). MH is ideally suited to solve our nation’s growing affordable housing crisis. But not many are learning to share the great stories we have to tell.
Let’s look at an example of how the facts are on our side, but we’ve allowed opposition forces to deliver body blows, because the industry has too often opted not to respond effectively.
The Seattle Times/Center for Public Integrity and non-profits such as CFED, led by Doug Ryan, spin their stories that MH lenders are greedy, heartless and were born out-of-wedlock. They push the narrative that MH lenders must be over-regulated by the CFPB, to ‘protect’ consumers, etc.. Ironically, there are good, honest – compelling! – answers to every allegation they’ve made.
Between the article and the posted comments (read all the comments, please) linked below – you’ll find the answers to those false allegations.
thehill.com/blogs/congress-blog/economy-budget/248665-regulations-for-manufactured-home-loans
There have been private and public cheers for the above. The truth is that as an industry, we’ve had this information all along. It simply had to be put together in a fashion that showcased the facts while pointing out the weaknesses and errors in Ryan-led CFED’s arguments. That takes TIME. The other side INVESTS the time, talent and treasure to make their negative narrative happen.
Why doesn’t our ProMH side routinely invest in making more solutions for home owners, potential buyers and MH businesses happen?
Donald Trump took a potentially damaging story about his ex-wife from 30 years ago, and turned it into an endorsement that silenced his opponents on a nasty allegation. I’m not commenting on The Donald’s candidacy, just pointing out that if you want to play in DC or in the States, you better be willing to defend your name and reputation.
More in MH should to learn to profitably do that: those that do, profit from the effort.
4 Steps to Increased, Profitable Success
- We must become great at sharing the millions of good news stories about how MH owners benefit! By supporting the value proposition for MH owners/residents and reinforcing their respectability and wisdom in their lifestyle choice, they win. So do we as MH Pros. We must think mutual victories. We must help our owners and residents, win.
- On issues like HR 650/S 682, the first message to frame is that MH home owners are harmed. We MH Pros must be the real consumer advocates for MH owners and buyers. Let others be a part of that to the degree they in fact support MH, but we must lead that charge. Doing so benefits everyone in the mix. Smart retailers, communities, factories, lenders and others are already doing this, and it makes them more money.
- We don’t have to think about ‘everyone’ being in on good actions. What we need are the leaders. The doers. Those who see that MH ought to be a mainstream home option, not a modest sideline in housing.
- We floated the idea about 4 years ago of an MH Alliance, Partners in Progress. Today, that’s a growing reality. The most robust tool for promoting the MH Lifestyle is MHLivingNews.com. Notice that its already doing what we’ve long advocated; not a one-size fit- all-blanket for MH promotion. New England isn’t Florida. Texas isn’t California and North Dakota isn’t the South, etc., etc.. We need regional/local stories – and we now have a growing number of video interviews that are good, regional examples of happy home owners and residents.
Yet, those Inside MH Videos have a national significance too. We need more, good story telling!
The facts are on the side of the MH Industry. The truth is on our side. Scripture says, you don’t take the lamp and place it under the bushel basket (lampstand). You don’t hide your light, you showcase your light.
When The Donald gets even a slight attack, he comes out swinging! Again, I’m not saying anything about his candidacy, my point is an observation that he’s on top in the polls due in part to millions of Americans like a fighter. Millions also presume that if you don’t stand up for yourself, then the accusations against you must be true. Now, apply those lessons to MH!
The MH Alliance/Partners in Progress is the smart, proven way to draw together the natural allies for manufactured homes. Those taking part can all point to successes, even early in the process.
Progress. It can become our most important product. PEP – Protect, Educate, Promote. PEP is a simple rallying cry for savvy MHPros and Associations.
We can grow our base, attracting more customers with cash and good credit when we
- Protect our MH home owners and businesses (eg: think HR 650/S 682),
- Educate our professionals, current and prospective MH home owners, the media, officials and the public at large
and - Promote the many benefits of the MH Lifestyle.
We have the ability to double sales sustainably in 12 months. We could double again 2 24. In a few years, MH could hit 500,000 new home shipments annually, by doing common sense, profitable steps.
We only need some MH Pros involved, some from every market in the U.S..
The rest should share MHLivingNews.com and they’ll watch their sales grow too.
Everyone benefits, but those investing the time, talent and treasure benefit the most. That’s as it should be!
That’s Progress, our most Important Product. ##
Check out…
Art Linkletter and Manufactured Housing Today
Evolutionary! From Trailer House, to Mobile Home to Today’s Manufactured Homes
