Manufactured Home Manufacturing
Description
Companies in this industry produce manufactured homes, also known as mobile homes, and nonresidential mobile buildings. Major companies include Cavco, Champion Homes, and Clayton Homes (all based in the US), as well as ABI (UK), Black Diamond Group (Canada), and Willerby Holiday Homes (UK).
Because of transportation costs, international trade in manufactured housing is limited. North America and Europe are the leading regional markets for the industry.
The US manufactured housing (MH) industry includes about 240 establishments (single-location companies and units of multi-location companies) with combined annual sales of about $4 billion.
Although MH structures are equipped with chassis, they are not intended for frequent movement. Makers of prefabricated wood buildings not equipped with chassis, which are not included in the industry, are covered in the Prefabricated Wood Building Manufacturing industry profile. 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 US industry is highly concentrated: the 50 largest firms account for about 95% of revenue.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major products are manufactured homes, which accounted for about 70% of industry revenue, while nonresidential mobile buildings accounted for about 10%.
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 units, called "floors," even though they sit side-by-side, fastened together at the installation site. Most units sold are double-wide. Housing units typically cost from $50,000 for a single-section home to more than $100,000 for a double-section home. Sizes range from 500 to 3,000 square feet, but can be larger. Most manufactured homes are about 1,500 square feet and have three or more bedrooms, two full bathrooms, and central air conditioning.
MH is built on assembly lines in factories, generally using the same materials as for a site-built house. The efficiency of working in standardized fashion in a controlled environment substantially reduces construction costs. Manufacturing costs are about $50 per square foot, versus $100 per square foot or more for a new site-built house. A unit can be assembled in one or two days from various pre-assembled components. Units are built on a permanent steel chassis that allows the finished unit to be transported to the installation site, where it is placed on a foundation (most often concrete blocks), and secured with tiedown straps. Some units are placed on permanent masonry foundations.
Because of transportation costs, international trade in manufactured housing is limited. North America and Europe are the leading regional markets for the industry.
The US manufactured housing (MH) industry includes about 240 establishments (single-location companies and units of multi-location companies) with combined annual sales of about $4 billion.
Although MH structures are equipped with chassis, they are not intended for frequent movement. Makers of prefabricated wood buildings not equipped with chassis, which are not included in the industry, are covered in the Prefabricated Wood Building Manufacturing industry profile. 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 US industry is highly concentrated: the 50 largest firms account for about 95% of revenue.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major products are manufactured homes, which accounted for about 70% of industry revenue, while nonresidential mobile buildings accounted for about 10%.
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 units, called "floors," even though they sit side-by-side, fastened together at the installation site. Most units sold are double-wide. Housing units typically cost from $50,000 for a single-section home to more than $100,000 for a double-section home. Sizes range from 500 to 3,000 square feet, but can be larger. Most manufactured homes are about 1,500 square feet and have three or more bedrooms, two full bathrooms, and central air conditioning.
MH is built on assembly lines in factories, generally using the same materials as for a site-built house. The efficiency of working in standardized fashion in a controlled environment substantially reduces construction costs. Manufacturing costs are about $50 per square foot, versus $100 per square foot or more for a new site-built house. A unit can be assembled in one or two days from various pre-assembled components. Units are built on a permanent steel chassis that allows the finished unit to be transported to the installation site, where it is placed on a foundation (most often concrete blocks), and secured with tiedown straps. Some units are placed on permanent masonry foundations.
Table of Contents
- Industry Overview
- Quarterly Industry Update
- Business Challenges
- Business Trends
- Industry Opportunities
- Call Preparation Questions
- Financial Information
- Industry Forecast
- Web Links and Acronyms
Pricing
Currency Rates
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