1) Who, What and Where: (Your name and your formal title at Deer Valley Homebuilders).
Chet Murphree, Vice President, General Manager, Deer Valley Homebuilders, Inc..
2) Background: (Educational/Professional snapshot before entering the factory-built housing arena).
BSBA, Administrative Science University Of Alabama, Huntsville
Crosby and Associates Quality College
I was very much a late bloomer. While very much a sports enthusiast, my lack of physical maturity at a young age encouraged work as opposed to athletics.
My first job was at 13 years of age was selling popcorn in the stands of horse shows. My commission was five cents per box sold. I also, at 13, had the privilege of being a caddie for bridge tournaments where I received $10 per 4 hour session.
Maybe the most humbling job I had was a cook/dishwasher at Long John Silver’s where I dressed like a colorful first mate on a ship.
Throughout my high school and college years, I always had a job.
My most impressionable employment, without question, was working for Copeland Corporation in Hartselle, AL. Being a nineteen month temporary employee, and the last hired in, I had the opportunity to observe supervision look down on others, as if they perceived different classes of people.
I was able to observe first hand, many hard working excellent people, being treated as if their significant contributions, were unappreciated. I often thought, if I ever get the opportunity to lead, I will make sure that all people are treated with respect.
My parents taught me that all of us are God’s children, created equally, and are to be loved. The book of James states that we should not put a few on a pedestal while placing others at our feet.
While I agree that hard work is absolutely necessary in components of every successful organization, I also believe it is to be appreciated and recognized regardless the capacity. I also believe there are consequences for those that choose not to contribute and prefer not to be yoked with such.
My introduction to the factory-built housing arena was through Keith Holdbrooks. While making a sales call when working as an account manager for AAA Cooper Transportation, I had the privilege of meeting Keith when he was orchestrating the inception and launch of the highly successful Southern Homes division of SE Homes.
He discussed with me the potential of the industry that, quite honestly at the time, I had no interest in. A couple of years later after I transferred to Alexandria, LA and Fort Smith, AR to run trucking terminals, I was ready to become grounded with my family. I called Keith and he put the wheels in motion for my introduction into our industry. I owe Keith a great amount of gratitude. I certainly did my best to contribute to SE Homes’ success during my tenure with them.
3) When and How: (When and how you and your associates began what became Deer Valley Homebuilders).
In 2003, a group of eight gentlemen, began considering the inception of Deer Valley Homebuilders. I received a phone call from Joel Logan and met with him to consider the possibility. It was a risky proposition. Our company was capitalized with a paltry, yet sufficient, $1.1 million USD. None of us had financial statements that would allow the ability to easily set up floor plan arrangements. We understood that we might have to initially begin with cash sales.
We took our first homes to the 2004 SCMHI Tunica Show, where we began our offering of heavy built, energy efficient homes. The initial attraction was the first complete finished drywall home series that we were certain would be in demand.
We were very fortunate to have commitments from some of the industry’s respected retailers that were the primary drivers of our ability to receive floor plan lines. Bombardier was the only floor plan source to commit prior to Tunica. We are thankful that Steve Rex supported and trusted us, but a $1.5 million line, while appreciated, we knew would not carry us far. Textron and 21st were much less responsive. I recall meeting with Tom Lowe that year in Tunica that expressed they required a 40% irrevocable letter of credit to which I shook his hand and expressed that it did not appear we would be partners at that time.
Deer Valley Homebuilder’s, Inc. owes Dick Moore, Mitchell Cook, Jan Davis, Dennis Adams, Harold Wilson, Shane Upshaw, and many other industry bulwarks, great appreciation. Through conversation with them, 21st Mortgage recognized that the true judge of our viability was not Deer Valley so much as it was the retailers we would be doing business with.
I recall Jan Davis bringing David Bumpers into our first Tunica display. I also can still hear Dick Moore state that he would be flooring his homes with 21st Mortgage prior to any confirmed decision. We are very thankful for our retailers and I am 100% convinced they are the reason our floor plan sources were established. Textron soon became a valuable partner.
4) What are your personal interests or hobbies? How do you like to spend non-work time?
I guess most would consider me boring. Since our 2004 inception, I remain a family man and my primary consideration is taking care of and spending time with my wife and two daughters. I also enjoy my cats and dog. All are female and better than I deserve.
I very much enjoy all kinds of fishing but very seldom do I find the time to participate.
When we began the company, I lived on the narrow sometimes swift Buttahatchie River. Many Saturdays I would have someone drop me, my canoe and sometimes a friend or family member several miles above my home. I would spend the afternoon enjoying mild white water and fishing en route back. It was beautiful, very peaceful, exhilarating and refreshing. I plan, at some point, a resumption of not only my love for but also the practice of fishing.
I now live on Lake Tuscaloosa with fantastic neighbors and enjoy limited water sports.
I have acoustic guitars and enjoy finger picking on my back porch. While not very talented, at least I play well enough to entertain myself.
I do enjoy college sports and because my residence is in Tuscaloosa (Northport), I favor the University of Alabama, primarily during football season. I do not follow professional sports.
5) Mr. Joel Logan commented, “Chet has always been the creative force behind DVHB’s most innovative floor plans and the lead strategist in DVHB’s marketing program…His creative talent combined with his organizational discipline and his personal drive will open a great new chapter in the growth of DVHB and the Company!”
I had the privilege of aptitude testing at a young age and my recommended areas of concentration were music, design and administration. I very much enjoy accessing areas of space to determine optimal feasibility and livability. If I were to be observed, one would find my business stress levels to be highest when home construction backlogs are low and when we are in pre-show design considerations. I have seen homes and/or features on commercials that I find myself recording to a database for consideration. I probably take it too seriously but I have no intention of backing off.
Joey Aycock, Deer Valley Sales Manager and David Shaw, Account Manager, are co-founders and both have keen eyes for aesthetics, options and construction techniques they believe desirable to homebuyers. They have been highly instrumental in ideas and their presentation of layouts that have translated into numerous home sales.
Some of our designs have added sales but have also added a greater degree of expertise and more intensive finishing processes.
We are proud of our homes and believe firmly that we have elevated market desirability. We find no fault in heavy built, energy efficient, aesthetically pleasing homes that will serve families a lifetime of comfort.
6) Deer Valley (DVLY) has a vision for building “heavy built” homes that are residential in style. Give us a sense of that and why you believe factory building can do the entry level product that has been MH’s bread and butter, buy still compete successfully for that larger conventional site-built market.
When assessing the vision for accomplishment with your organization and its offerings, one must be introspective. What is it that you will work to accomplish? While understanding that profitability is absolutely necessary, what footprint do you wish to leave on this earth when all is said and done? Deer Valley Homebuilders has only had the desire to offer homes that can compare and many times exceed site-built construction.
The majority of factory-builders are not organized to compete with site-built, nor are its buyers in position to purchase conventional site-built.
There remains a demand for lower price point homes that can provide low cost housing for those that cannot qualify otherwise and this provides a profitable business model for many.
While this type construction has an obvious market and rightfully so, the deeper message is that this type housing creates a stigma whereby numerous housing and zoning officials many times put all factory-built housing into the same category.
I do believe that strides are being made. I also believe it is going to take capital investments in engineering and leadership in entrepreneurial development to change the mindset of those that do not see the benefit. We have some ideas on the table that we believe could assist in further industry transformation.
I was pleased to discuss ideas with some developers at the SCMHI Tunica show that expressed their support and plans to push a new provision from factory-built housing.
Several high end northern modular builders have developed a recipe to exceed site-built. We are looking to get more involved with multi-family and narrow lot line rebuilds in metropolitan areas.
I watched a project of supposed rapid production conventional built front load homes. The project took longer than it should have, was exposed to the elements, and was much more costly than it would have been if built in a controlled environment. Every advantage with factory built was evident with the only exception being that the local builders and their contractors would not have been used. In spite of this, the city officials turned their backs to the possibility and advantages of using our industry.
I will make a case for consideration and believe for our industry to transform that many of us will have to become much more vocal and obtain and exercise entrepreneurial connections.
Cost advantages are maintained when the product can be, for the most part, completed in our facilities. Where we run into cost disadvantages is where the factory-built field finish work costs exceed the stick-built contractor’s expense.
We preach cost savings. We should move to preach first and foremost, systems-built is better!
It is my opinion that simplifying the ability to install roofs on site can transform our industry as compared to site-built. Our boxes/compartments/floors must be constructed so as not to have the restrictions that are currently in place. This will require collaboration with licensed roofing framers/finishers, etc. to obtain the capability to make significant inroads into conventional subdivisions whereby one cannot distinguish conventional versus system built.
7) The recreational vehicle (RV) business sells towable units that cost more per square foot that manufactured housing (MH), yet, RVs outsell MHs 5 to 1 in 2013. Conventional housing outsold MHs by some 8 to 1, even though the costs are two to one over MHs. Don’t such facts suggest we could and should sell more than 60,000 new homes a year? Can’t we sell more upscale homes than we currently do? Do you think that there would be value for manufacturers and other industry pros to pull together and do something like the recreational vehicle industry’s GoRVing campaign?
Though many do and similarities exist, I do not equate our industry with the RV industry. I would expect the officials with MHI would have better information concerning a massive campaign.
While rhetoric can help, I believe it is going to take more boots on the ground and the ability to infiltrate and work in conjunction with general contractors to prove the advantages and ability to share in the much larger total housing industry.
I am 100% convinced that there is a greater share of the housing industry that is available whereby factory construction make perfect sense to be employed.
8) What closing thoughts would you like to share with our readers?
It is a privilege to work within this industry and to serve. I have great respect for those that care about others and the common good of all.
I am thankful for the opportunity to be aligned with our valued caring plant and office personnel, our valued suppliers, valued retailers/developers/builders, valued finance companies, advertising advocates, state and national associations and government officials that employ common sense in doing what is best for our industry and the American people.
I have seen a lot of great homes built and many errors, but always with the intent and commitment to do what is right. I have seen business partners come together and accomplish much but also witnessed divisiveness.
I pray and encourage all to simply be fair and always do the right thing for our homebuyers.
While there are occasions where some cannot pleased, let it not be because we failed to do our part.
It remains our mission to provide heavy built, energy efficient housing and to increase our industry in a manner that ethically and positively reaches others conclusively. ##
This is a short version of our Video Interview of – A Cup of Coffee with…Chet Murphree –
Please see the full length version, below, thank you!
Ten Minute version of the Video Interview with Chet Murphree
