Trends 2010 Questionnaire - Greg McClanahan

1. Factory-built housing-wise, what would you like to see happen in 2010?

An economist would likely be able to draw from economic indicator's and reference historical trends that could justify his or her predictions about 2010. I'm not educated enough to make any statement with authority other than to say that my heart hurts for the jobless, for the fathers and mothers who don't know how they will get by, and for those whose lifestyles have been compromised by current market conditions.

In general, I would like to see consumer confidence restored and our economy stabilized. Not that I believe we will see historical volumes restored for some time, but I would like to see stable growth. Consumer confidence to me is the driving force to our economy. The byproduct is that consistent sales will be realized with every valuable product or service, people will be re-hired, and then new jobs will be created. This is a healthy growth cycle without significant peaks or valleys.

As an industry we need to re-invent ourselves so that we can more rapidly adjust our product offering and ability to build to market conditions. Maybe we need to be innovative with the range of things our factories might produce. An example of this is a custom cabinet company in Colorado that were able to keep all 50 employees busy around the Christmas season by building doll houses.

2. What are the challenges and the paths needed to move forward?

Our challenge is to believe in ourselves and in our ability to stay the course to the other side of the valley. Discouragement is a challenge that we need to combat. We need to take the time to use any down time to better our skills and our character. When we personally are growing and developing, our mind will be sharp enough to be creative. We will also be the kind of person a customer wants to do business with because we are positive and enjoyable to be around. People still buy from people even though they may get some education on the computer.

3. If a national 'Go-RVing' style image campaign isn't achieved, would you favor state or regional level image and marketing campaigns as an alternative? Do you think that such an effort could in some ways be more effective than a national campaign? If so, why?

There is value in all of these levels of marketing. At the national and state level, it would be great to have an educative campaign like the RV industry has accomplished in terms of quality of lifestyle and encouraging family time. The local retailer then needs to take that higher level interest and connect with the homebuyer. They need to be able to say; "Bring your lifestyle and We'll build you home." We need to continue to sell to the emotion of homeownership. We buy with emotion, and that cannot be cultivated into a sale without an effective interaction with a great sales professional. Educational marketing in general could address "Why Manufactured Products are Superior." The campaign could show everything from the automobiles to potato chips to trusses, furnaces, to the entire home being manufactured. Quality control, cost savings, and speed could highlight the campaign.

4. Does this industry need natural disasters (i.e. hurricanes) to survive or thrive? Explain your position on this point.

No, but when we are called upon to provide for a need of this nature, we should shine as an example of manufacturing ingenuity and quality. For anyone lucky enough to receive housing assistance after a disaster, they should have nothing but positive to say about their home and its quality. We need to make sure that we are creative and innovative in building architecturally pleasing structures as we build for disaster relief. Build them so they will be desirable as permanent homes and not just temporary shelter. That way they won't flood the market when those devastated areas have been restored.

5. What can consumers expect from your sector of the industry in 2010? Explain.

Consumers can expect high levels of service during and after the sale. The reduced number of customers that walk through the door need to see our best or we won't earn their respect and business. It is important that our entire staff realizes that even though they may not personally be waiting on a customer, that customer is evaluating the entire company when they are making their buying decision. We need to make a customer have to struggle to come up with any reason they shouldn't buy from our company.

6. What can your sector of the industry do better? How can that be achieved?

I believe, in retail, we can market smarter and more strategically. I think we absolutely need to have our overhead in check and offer the best value to our customers by keeping our prices as low as possible. Homes are being sold, they just need to see our value over other alternatives.

I also believe we have to expand the ways we can help Native American Homebuyers enjoy homeownership through the HUD-184 loan program. Land and appraisals are not a problem with this loan program.

We need to further develop a relationship with area Farmer's Co-op's on home buying programs for their members. Again, land is generally not a problem for the next generation to have a piece of the farm and therefore appraisals aren't as difficult with no land cost.

We are trying to also create home buying programs with major employers in the area. Advertising expenses are minimized when we utilize a direct marketing approach - this savings along with anticipated volume, allows us to give great pricing to the homebuyer/employee. It provides the employer with another employee benefit to add along with health care and 401K programs - only this program won't cost them a penny. An employer who cares enough to help an employee improve their quality of life will see this as a program worth sending a flyer out periodically with employee paychecks.

7. Any other thoughts or encouragement you'd like to share with our Industry Readers?

I think it is important to be creative and innovative. In marketing, in sales, in manufacturing, in customer service, or any other area of our businesses. It is in the valley that we learn more about who we are and it is here that we build our character. For those still in the industry and reading this, that speaks volumes about your character. You are great or you would not still be around to read my measly comments.

Greg McClanahan
National Sales Manager
Innovative Homes
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