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ABOUT THE INDUSTRY

Modular Home Manufacturers 7%

There are about 225 modular home manufacturers that make assembled sections of housing inside factories. Most modular units are made in complete, box like sections, and multiple-section units and stack-on units are common. Modulars are the strongest of all frame homes built, and are 95% complete when they leave the factory. They are sold direct or through local builders or builder/dealers. During 2008 about 127,000 modular homes and apartments were sold.

HUD-Code (Mobile) Home 4%

Ever since the passage in 1976 of the U. S. Department of Housing & Urban Development Manufactured Home Construction & Safety Standards (HUD-Code), exterior frame construction of mobile units has been on par with site-built homes, and HUD-Code homes are now generally safer dwellings. HUD-Code homes are made by approximately 80 companies operating about 150 factories using techniques similar to modular methods but with generally lighter construction and always with a metal chassis as part of the floor system. It is believed that double-section HUD-Code homes which look like site-built homes will account for most low-cost housing in the future. HUD-Code homes are sold through dealers on display lots or from model homes in subdivisions. In 2008 about 82,000 HUD-Code homes were sold, and over half of those were double or multi-section units.

Production Builders 33%

These companies usually build single-family homes and low-rise apartment buildings in subdivisions near major metropolitan centers. More than 95% of the nation's 7,000 large production builders use factory-fabricated roof trusses. Use of other factory-made components, such as floor trusses and wall panels, is growing rapidly because of soaring site labor and construction loan costs. Some of the biggest production builders operate their own component factories. However, all production builders sell their homes directly to end buyers rather than through builder/dealer networks, which distinguishes them from panelized home manufacturers. In 2008, production builders sold about 622,000 units.

Panelized Home Manufacturers 56%

The panelized home manufacturers are the biggest and most diverse segment of U.S. housing. They include: 1) Hundreds of conventional panelizers who sell their packaged homes through builders and builder-dealers; 2) Log home builders, over 200 strong, who sell direct or through dealers; 3) The mass merchandiser chains and local lumber yards and home centers who perform all functions of a package home producer; 4) Producers of dome homes and other alternative systems including light-gage steel, lightweight concrete, foam-core panels, foam blocks--plus component firms who cross over into package homes. In 2008 the estimated 3,500 panelizers collectively built about 1.063 million units, slightly exceeding the production builders.

Component Manufacturers

These are independent companies that operate factories and make components mostly for sale to production builders. Component manufacturers almost invariably (96%) make roof trusses, 90% make floor trusses, 60% produce wall panels and 6% machine and pre-hang doors. They also make gable ends, corners, tees, stair systems, cupolas, agri-buildings, garages, metal-plate connected rough openings for windows and doors, and other components. Output of the nation's 2,100 component manufacturers is not figured in units because they sell mostly to production builders counted above.

  Special Unit Manufacturers

Special unit manufacturers are in-plant builders of commercial structures of all types. There are about 170 of these companies who build an average of about 777 structures per year. They sell direct or through dealers and also lease their units. Their output, usually built to more stringent commercial building codes, includes classrooms, offices, banks, hospitals, construction offices, equipment shelters, restaurants, kiosks, jails, airport terminals, strip shopping centers, and dozens of other commercial buildings. This industry is growing fast as owners and investors discover the speed, cost and quality advantages of specifying modular commercial structures. It must be remembered that all the previously mentioned housing producers also build commercial buildings. Total output of commercial structures by both in-plant special unit and housing companies was estimated at 382,000 units in 2007.

Mobile/Modular/Panelized Dealers

Builders and dealers for HUD-Code (mobile) homes, modular homes and panelized homes account for sales of 63% of all housing. Sometimes called "builder-dealers" for modular and panelized homes, they may sell for one or several manufacturers. Normally they sell homes only in a given territory, and it is their responsibility to prepare the site, do foundation and utility work, and supervise completion work on the homes after delivery. Most HUD-Code home dealers sell units from display lots, mobile home communities or both. A growing trend among HUD-Code home dealers is to sell models in conventional real estate subdivisions.

THIS INDUSTRY IS GROWING SWIFTLY. From the late 1930s when modern industrialized housing companies started emerging in New England and the Midwest, HUD-Code, modular and panelized home companies have grown to where they now produce 67% of all single-family homes and low-rise apartments. This does not count the industrialization of site-built homes where 96% use factory made roof trusses, and a rapidly growing number use pre-hung doors, floor trusses, wall panels and other components.
WHY THE FAST GROWTH? Faster construction time, lower costs and better quality. While "stick builders" may need from six to 12 months or even more to build a house at a job site, industrialized builders need only one to three months to finish a componentized home, six to eight WEEKS to finish a panelized package home, and only one to three weeks to finish a double- section HUD-Code or modular home! Speed means fewer material cost increases and less or even no cost for construction loan money. Precision factory fabrication methods also deliver vastly better quality in construction.
WHO BUYS THE PRODUCTS? Home builders or factory fabricators themselves. Independent research shows Automated Builder reader companies build an average of 685 homes per year; and they buy - 810 entry doors; 4,756 prime windows; 159,664 sq. ft. of house wrap; 1,366 kitchen cabinets; 60,014 sq. yrds. of carpeting; 191 fireplaces and 358 air conditioners plus other products.

THREE WAYS TO SELL TO THIS HOUSING MARKET:

1. ADVERTISE IN AUTOMATED BUILDER. Automated Builder ad rates of under $6,200 per page for the complete national new housing market are about 50% less than the mass circulation "shotgun" publications. Low-cost geographic ads are also available.

2. USE PIN-POINTED DIRECT MAIL. Automated Builder advertisers are entitled to use our precise lists of production builders, panelized home manufacturers, HUD-Code (mobile) home manufacturers, modular home manufacturers, component manufacturers and all dealers. Selections can be made by type of company, titles of individuals, dollar-volume size of firms, and any geographic mix.

3. TAKE ADVANTAGE OF SPECIAL MERCHANDISING PACKAGES. Automated Builder's special merchandising packages include the Test Market Package, tailored direct-mail, and twelve "2-for-1" editions each year.

CALL TOLL-FREE FOR INFORMATION OR SPACE RESERVATIONS: 1-800-344-BLDR or info@automatedbuilder.com

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Last modified: October 06, 2008