by Steve Like

The National Modular Housing Council had a very successful meeting in Austin last month. The room was filled with new ideas and initiatives, such as Green Building and our efforts with Energy Star, and concluded on a positive and up-beat tone with a report that indicated a decline in modular shipments, but a significant increase in market share of all new housing starts.

With increased pressure on homebuilders to remain competitive in a tougher environment, the modular housing industry must continue to satisfy the consumer, and make it the desired home of choice, and the desired method of construction. This is the only way we can continue to grow the market.

Despite the reluctance to depart from “traditional” home building methods, the housing industry will evolve, from an industry where now almost every builder uses some type of prefabricated component, to the eventual conclusion of where all homes are built to substantial completion in the factory. I believe, as an industry and especially as manufacturers, we must be constantly considering our role in the home construction process, and ensuring we are well positioned in our ability to meet as well as grow the demand.

It is also my belief that the modular industry does have the ability to hasten the housing evolution to a housing revolution. Given where we are going as an industry today, the current environment has manufacturing companies positioning themselves one of two ways.

First, as a supplier of home building components, supplying our components to a non-exclusive builder/retailer network, who then completes the work on-site, interacts with the consumer, and uses their own expertise in finishing the components to make it a home. The key here is that we play a “supplier” role in the process, not unlike other building component manufacturers of today, and the builder is our focused customer.

Second, manufacturers truly become a full service turn-key homebuilder, directly interfacing with the consumer, handling the on-site work, installation, and finish of the home (with either direct employees or local company certified builder/retailers). In this way, we become true “home-builders” with brand recognition by the homebuyer, who becomes our direct customer.

Certainly in our ever-changing industry and with the incredible amount of business acumen that exists, something dramatically different from what is described above may end up being the dominant modular market position. What is important is that between the modules leaving the factory to final delivery to the consumer, the process is controlled, quality assurances are in place, and there is accountability every step of the way. A controlled process will mean more satisfied consumers. A satisfied customer means greater demand. That is good for everyone.

I welcome your thoughts and comments. I can be reached at slike@patriothomes.com

Steve Like
Chairman, National Modular Housing Council
Executive Vice-President & General Counsel, Patriot Homes, Inc.