Manufactured Home Manufacturing

Brief Excerpt from Industry Overview Chapter:

Companies in this industry produce manufactured homes, also known as mobile homes, and nonresidential mobile buildings. Major US-based companies include Cavco, Champion Enterprises, and Clayton Homes.

The US manufactured housing (MH) industry includes about 200 companies with combined annual sales of about $3 billion. High growth is forecast for the next two years. Key growth drivers include home affordability, low mortgage rates, and increased credit availability.

Although MH structures are equipped with chassis, they are not intended for frequent movement. Makers of prefabricated wood buildings not equipped with chassis are not included in the industry. Recreational vehicles, also not included in the industry, are covered in the Recreational Vehicle Manufacturing industry profile.

COMPETITIVE LANDSCAPE

Demand is driven by population growth, the cost of alternative forms of housing, and the availability of credit. The profitability of individual companies depends on efficient operations and access to dealers. Large companies have economies of scale in purchasing and distribution. Small companies can compete successfully in local markets. The industry is highly concentrated: the top eight companies account for about 60 percent of revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major products are manufactured homes, which account for more than 90 percent of industry revenue, and nonresidential mobile buildings.

MH companies produce single- or double-wide rectangular housing or nonresidential units, which are later installed on a site to form a dwelling or building, such as a classroom or office. The resulting house may consist of a single or several...