Welcome to the first edition of Modular Housing News.

Exciting things have been happening in the modular housing industry. Modular shipments have experienced tremendous growth for the past two years, with annual shipments reaching almost 38,000 for 2003. More developers are discovering how to reach niche markets with modular housing, while modular manufacturers are pushing the innovative envelope with new home designs and amenities.

Two years ago the Modular Housing Committee was faced with a number of challenges and questions from industry partners. Since that time, as the first chair of the Modular Housing Committee, I am proud to report on our accomplishments. The committee jumped head first into examining the confusing sales and use tax treatment of modular housing within the states, and began an initiative to help states deal with changing tax structures where it was appropriate. In response to the lack of national statistics on modular housing and growth, the Modular Housing Committee organized and funded the modular statistics project that began tracking industry growth on a quarterly basis across the country.

The committee and state associations have tackled head on the problems at the state and local level that threaten the integrity of the industry, and have looked to develop standards for homes to ensure a thriving and prosperous industry many years down the road. In addition, the Modular Housing Committee has been taking key positions on critical building code issues, such as stair geometry, and representing the industry before various code bodies and public official groups. The committee also is actively engaged on modular issues at the federal level, ensuring fair and proper regulation, and developing partnerships with key industry players such as the Building Systems Council, and the Modular Building Systems Association. At our last meeting in New Orleans, the committee began exploring possible educational opportunities to develop new markets for manufacturers, and to establish outreach tools to members, such as the development of this newsletter.

While the Modular Housing Committee has accomplished many things in its two short years many challenges remain. Land use restrictions on modular housing are increasing, transportation regulations present problems for manufacturers and transporters shipping across state lines, and perception problems threaten to hold the industry back. I am confident that with unified industry support and commitment, the modular housing sector of the housing arena will continue to grow and be in the business of housing Americans for many years to come.

I welcome your thoughts and comments as we proceed. I can be reached at dennisj@r-anell.com.

Dennis Jones
Chair, Modular Housing Committee
President, R-Anell Housing Group, LLC