Industry
Update - April 17, 2007
I have just returned from the National Congress & Expo for Manufactured and Modular Housing, held April 10th – 12th in Las Vegas. This year’s expo was full of productive workshops, interesting presenters and profitable networking opportunities. It would be impossible to pass on to you all of the useful information I learned but let me take a minute and share some of the highlights.
Each Tuesday of the Congress & Expo is now devoted
totally to the National Communities Council. Last
year’s session was outstanding --- this year
it was even better. From 8am until 6pm people
sacrificed the opportunity to bathe in 80-degree
weather and instead inhaled the oxygenated air-conditioning
of a hotel convention center and share information
with their peers. The theme was the National
Sales & Marketing Forum for Communities and each
workshop (even the working luncheon) provided
us with the opportunity to share new ideas we
will use for the betterment of our communities
and our residents. Workshops such as: “Vacancies
No More-Strategic Marketing of Communities”, “Successful
In-Community Sales Operations”, “Working with
Manufacturers to Get the Right Product”, “The
Latino Market: The New Wave of Residents”, “Alternative
Methods for Filling Sites”, “Selling and Marketing
Resale and Repossessed Homes”, “Is 55 and Better
the Better Way?” taught us how to improve our
communities and the return on investment.
The Congress & Expo kicked into high gear Wednesday morning with an inspirational welcoming speech by Barry McCabe, MHI Chairman, the introduction of Gail Davis Cardwell as MHI’s new President and a terrific talk from Denise Snow entitled “Creating a World-Class Customer Service Organization”. Mr. Snow’s presentation featured real and often humorous examples of superior customer service he learned during his many years with Walt Disney World. From there the balance of the two-day program was filled with educational workshops, exhibitor receptions and networking opportunities too numerous to mention. All-in-all, it was a great conference. Michael O’Brien CAE, Suzanne Clegg, CMP, Lauren Lewis, Ann Parman, PHC, Bruce Savage, APR, CAE, Sherri Cabrera, PHC and all of the other MHI’ staff members deserve our thanks for organizing such a worthwhile event.
Many of us continue to be concerned about the
overall health and stability of the manufactured
housing industry. With shipments down around 38% year-to-date, the decline is shocking. It just doesn’t add up --- we’ve shrunk by more than two-thirds during the biggest housing boom in modern history. (Let me insert that a well know Wells Fargo Bank Analysis told me it was a mortgage boom – not a housing boom we just experienced). How did we manage to drop off of most people’s radar so fast? I truly did not know that in addition to building the best affordable housing on the market most people have figured out we also sell an antiquated construction process that is too difficult and cumbersome for most consumers to stomach. Do that many people know that by the time they move in our customer satisfaction ratings rival that of an Enron shareholder? For whatever reason, and there are many, we are no longer considered a viable housing choice by many consumers. That, however, is changing. As the site-built mortgage business begins to falter and huge inventories of unsold homes loom over large cities, buyers will once again recognize the affordability of our product and we will become more widely known if we change just one thing.
We must offer a turn-key product, not a difficult
construction process riddled with finger-pointing
and disclaimers. We have thousands of satisfied customers in this industry buying new and pre-owned homes today from retailers, community owners and developers backed by manufacturers who offer a start-to-finish, one stop, single-transaction home buying experience. We have experienced the results of adopting this philosophy. As Commonwealth enters new markets and fills home sites under what most perceive as difficult circumstances we have had great success in selling turn key model homes at retail prices. This is not exactly rocket science people --- but for some reason many manufactured housing leaders have resisted taking on the additional expense or risk associated with placing model homes for sale. That has changed. Manufacturers are beginning to offer (or even insist on) handling the entire process – from installation to customer walk-thru and orientation. It’s the only way to go. And it is not about selling the home; it’s about providing an attractive lifestyle, offering a quality home at a reasonable price, and providing superior customer service. Let’s give them what they want and they will be lining up to invest.
Greg
Harmon - President
Commonwealth Real Estate Services
E-mail: greg@cwres.com
Telephone 503.244.2300 Ext. 101