Cavco Industries’ $2 Trillion Dollar Financial Broadside, Implications from Cavco Industries (CVCO) Doc, CEO William “Bill” Boor Remarks; plus Sunday Weekly MHVille Headlines Recap
A broadside can be defined as a strong written or spoken attack on a given point (Cambridge, Merriam Webster). The case could be made that properly deploying affordable manufactured housing could create a two trillion-dollar annual economic surge for the U.S. Gross Domestic Product (GDP). Who says? Look carefully anew, or for the first time, at Cavco Industries (CVCO) investor relations pitch page, as shown on last Monday’s MHProNews report about Cavco’s President and CEO William “Bill” Boor’s remarks to Congress, linked in the weekly review below. That $2T data point claimed by Cavco aligns with research MHProNews brought to our readers attention a few years ago. That $2T figure was based upon two National Bureau of Economic Research (NBER) economic researchers’ work, linked here. So Cavco’s claim about an estimated $2 trillion-dollar boost to the U.S. economy by fixing the affordable housing crisis is apparently factually accurate and is evidence-based. Additionally, Cavco asserted that there are some 6 million housing units needed (again, see that in the Cavco-Boor Congressional remarks report, linked below). That 6-million-unit shortage estimate may be low. But that 6 million units of housing needed in the U.S. certainly falls into the range of estimates claimed by ‘reputable’ sources previously reported and unpacked by MHProNews regarding third-party research on that U.S. housing shortage issue. These are clearly important topics for manufactured housing when considering how great the manufactured home industry’s true potential is.
The implications from Cavco’s corporate and Boor’s assertions to investors are many.
They include an apparent wealth of opportunities for those already involved in manufactured housing.
But they also reasons why international and domestic investors alike are peering into manufactured housing and other forms of factory building in the U.S. Some, as MHProNews previously reported, are already moving into and/or considering pouring dollars into the manufactured home-factory-built housing industry. So those already in MHVille should not consider themselves immune from ‘fresh’ or possible new competitors.
Boor Said It…
William “Bill” Boor, Cavco President and CEO and Manufactured Housing Institute (MHI) vice chairman and self-announced soon to be MHI chairman, has through his and his company’s corporate remarks opened a wealth of potential opportunities given that the obstacles his remarks identified are addressed. See those remarks in the transcript of his testimony below. As another reference point, look too at those of the National Association of Home Builders (NAHB) chair to Congress at the same hearing Boor appeared on behalf of MHI.
Anyone paying attention to national politics in an objective fashion realizes that corruption in America may be at record levels. The evidence and allegations of corruption by the Biden family, the Federal Bureau of Investigations (FBI), numbers of federal agencies involved in censoring Americans contrary to Constitutional prohibitions is astonishing. More on political, legal, and economic connected topics and trends are found in the headlines for the week in review below.
The allegations against White House occupant Joe Biden, his son Hunter, plus other possible Biden family members are serious enough where normally pro-Biden left wing media are increasingly mentioning other possible candidates to replace him. That topic is covered below as it relates to both major U.S. political parties (Democrats and Republicans). For some on the Democratic side, so long as that Biden substitute candidate isn’t lifelong Democrat Robert F. Kennedy Jr. Kennedy, who has been steadily rising in the polls, despite efforts by many in left-leaning media to ignore, silence, or otherwise defame him. While award-winning reporter turned award-winning pundit Chris Plante has aptly talked about “information dominance” on the left who said that the greatest power the media has is their power to ignore (news, issues, etc.), it would be a mistake to think that center-right or alt-media sources aren’t impactful. Alt-media can be impactful, as Kennedy’s improving polling in a low-budget campaign reflects.
The case can be made that Cavco alone could make a huge difference in causing a surge in industry production that could lead to historic highs in manufactured home industry production.
In the wake of Boor’s remarks to Congress, a well-connected source speculated to MHProNews last week that Boor may be signaling a pivot by the Manufactured Housing Institute (MHI) once he becomes chairman. If Boor indeed made a positive pivot away from MHI’s purported years of failed posturing and routine jabberwocky, and toward common-sense action-steps described in several reports linked below, such moves could be welcomed by many who think that MHI has been part of the problem rather than part of the industry’s solution to return manufactured housing to robust growth, sales, and production.
But perhaps more important than mere cheers would be the fact that Boor-Cavco made valid points when they say that 6 million homes are needed.
Boor made valid points that the U.S. could generate $2T dollars more annually in GDP.
They are correct in saying that manufactured homes are the most logical solution today.
Boor and Cavco are correct when saying that implementing exiting laws could spark a robust affordable housing revolution that features a generous use of manufactured housing.
Don’t miss today’s postscript for more on those points.
Among the reports that follow, MHI has finally updated part of their infographic, correcting a prior error previously reported by MHProNews.
With no further adieu, here are the headlines for the week that was from 7.16 to 7.23.2023.
The Case for Opportunities, Obstacles, Enforcement of Existing Laws and the Need for Authentic Reforms.
The case can be made that Cavco alone could make a huge difference in causing a surge in industry production that could lead to historic highs in production. Cavco says they have millions of dollars they could be deploying for whatever type of project(s) they would deem worthwhile. The quotes that follow can be found in their full context in the remarks linked here and above in the weekly recap.
Cavco told investors just weeks ago the following.
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https://www.manufacturedhomepronews.com/manufactured-housing-institute-mhi-claims-contradicted-by-cavco-industries-ir-statements-shortage-of-affordable-housing-costs-economy-2trillion-annually-plus-mhville-markets-upd/ There is no lack of evidence that there is an affordable housing crisis. But that being so, why is MHI making the odd argument in their most recent (4.10.2023) Federated States ‘Newsletter’ that the industry ought to expect this current downturn because more expensive site built housing is also in a downturn? MHI’s research and reasoning are arguably a classic example of PALTERING and the use of a RED HERRING logical fallacy. Note: depending on your browser or device, many images in this report and others on MHProNews can be clicked to expand. Click the image and follow the prompts. For example, in some browsers/devices you click the image and select ‘open in a new window.’ After clicking that selection you click the image in the open window to expand the image to a larger size. To return to this page, use your back key, escape or follow the prompts.
Boor told investors in a prior, post-COVID19, earnings call the following.
There is an evidence-based case to be made, as MHLivingNews noted in the report linked above and here, that manufactured housing ought to be soaring instead of sliding. Because Boor and MHI have acknowledged these items publicly once again, there is a case to be made that Boor, Cavco, and other publicly traded MHI members are now even more explicitly open to the charge of making materially deceptive remarks to investors, shareholders, and other stakeholders.
If need be, Cavco has the financial and legal resources to ‘go it alone’ if MHI failed to join them in a series of success-oriented legal challenges that would cause federal, state, and local officials to enforce existing laws that Boor and MHI have acknowledged.
If some 3 million of the 6 million housing units that the U.S. needs were HUD Code manufactured homes, at the average Boor said of $127,250 [x 3000000 =] would be equal to some $381,750,000,000. That’s 381.75 million dollars in business. Retail and wholesale gross margins could be at the 25 to 30 percent range (+/-).
Because the payments on manufactured homes are often less than the cost of renting, many renters, including but not limited to minorities, could own a home for a similar or lower payment than renting. Boor said it well. There are millions who are losing out on the benefits of homeownership. These factoids and insights could represent massive potential class action lawsuits for those who fail to do what’s right.
But there is more.
Because Freddie Mac research in 2022 revealed that some 25 million plus renter households are mortgage qualified now. Think about that point. That’s more than four times the results noted above.
There could be 1.3 plus trillion dollars’ worth of HUD Code manufactured homes sold, if, if, if…
…if Boor, Cavco, MHI, and key MHI members began to do their jobs properly. Earnings for small businesses and employees could soar.
But instead, despite what some may mouth, there appears to be an evident desire to consolidate the industry. Once again, per credible informed legal analysis, that could be grounds for a range of possible legal actions by an array of possible plaintiffs and public officials.
MHProNews will continue to bring the industry the facts, evidence, analysis that has caused traffic to surge to new highs in 2023, well over the already industry leading engagement in 2022.
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The Manufactured Housing Institue (MHI) and the Manufactured Housing Association for Regulatory Reform IMHARR) teamed up in the late 1990s to get the Manufactured Housing Improvement Act of 2000 (MHIA) enacted into law. It was supposed to, among other factors, give the industry ‘enhanced federal preemption’ to overcome zoning and placement challenges at the local level. What happened to that once joint push by MHARR and MHI? Note: depending on your browser or device, many images in this report can be clicked to expand. For example, in some browsers/devices you click the image and select ‘open in a new window.’ After clicking that selection, you click the image in the open window to expand the image to a larger size. To return to this page, use your back key, escape or follow the prompts. https://www.manufacturedhomepronews.com/in-the-business-world-the-rear-view-mirror-is-always-clearer-than-the-windshield-warren-buffett-mhville-leader-showcases-efforts-to-renew-american-dream-plus-sunday-weekly/
Some may fear taking on MHI because of the apparent backing of Warren Buffett led Berkshire Hathaway. But Berkshire’s own attorney, as well as those for MHI, Clayton, and others, have failed to respond to the growing body of evidence of MHI’s problematic behavior.
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Ironically, Skyline Champion’s own investor pitch-deck provides ample evidence for manufactured housing industry underperformance. That same pitch-deck further provides evidence that Mergers and Acquisitions are a key part of their business model. What is there in such revelations that Birch and Williams miss? Bear in mind, that they are mere stand-ins who voluntarily raised their hands in defense of Berkshire and MHI firms like Skyline Champion. Notice: Several of the illustrations shown in this report can be opened in many browsers to reveal a larger size. To open this picture, click the image once. When the window opens, click it again to reveal the larger size photo. Use your browsers back key to return to the article. https://www.manufacturedhomepronews.com/masthead/true-tale-of-four-attorneys-research-into-manufactured-housing-what-they-reveal-about-why-manufactured-homes-are-underperforming-during-an-affordable-housing-crisis-facts-and-analysis/
What is the point of all this underperformance? Apparently, consolidation. Flagship, Cavco, Skyline Champion, and other MHI members have said so in their own words. So, while MHI apparently pretends to be working to grow the industry, they are instead subverting it so their dominating brands can consolidate a ‘fragmented’ industry.
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“In the business world, the rear-view mirror is always clearer than the windshield.” – Warren Buffett. That begs a key question. Why don’t more people LOOK at the rearview mirror so they can learn more about the patterns that influence what’s ahead? Note: depending on your browser or device, many images in this report can be clicked to expand. Click the image and follow the prompts. To return to this page, use your back key, escape or follow the prompts.
MHProNews will continue to unpack the various remarks and reports that emerge in manufactured housing. No one else digs deeper on each of these topics and other vexing issues that emerge. To learn more read the linked and related reports. Note that the typical MHProNews reader in 2022 visited some 10+ pages per visit. So, every time you click another link and read on, you are in the company of well over a million visitors annually who are doing the same. ###
Not long after what is now called MHProNews originally launched approaching 14 years ago, this platform encouraged readers to invest ten to fifteen minutes a day in reading. Fast forward to 2023, and there is evidence that thousands of readers may be spending 30 minutes to an hour or more reading reports and analysis on MHProNews daily. To be able to compete successfully with Buffett and those who follow his moat and other tactics, it is just common sense that the more you know, the better you understand and the more likely you can establish plans that can successfully navigate the threats that are apparently posed by Buffett, his brands, and their allies. https://www.manufacturedhomepronews.com/affordable-homes-for-low-income-must-produce-in-factory-years-to-unravel-sabotage-grad-students-interest-in-manufactured-housing-factory-home-solutions-plus-sun/
https://www.manufacturedhomepronews.com/ghorbani-nails-zoning-answers-to-how-and-who/ Trade media can and should be a ‘cheer leader’ when it is appropriate to do so. But authentic trade media also holds the powers that be to account. Who says? The American Press Institute. Click here to subscribe to the most complete and obviously most read manufactured housing industry news in seconds. Enter your desired email address, press submit, confirm in your inbox. Then You’re All Set for x2 weekly emailed news updates! To report a news tip – either ON or OFF the record – click the image above or send an email to iReportMHNewsTips@mhmsm.com – To help us spot your message in our volume of email, please put the words NEWS TIP or COMMENTS in the subject line.
Our son has grown quite a bit since this 12.2019 photo. All on Capitol Hill were welcoming and interested in our manufactured housing industry related concerns. But Congressman Al Green’s office was tremendous in their hospitality. Our son’s hand is on a package that included the Constitution of the United States, bottled water, and other goodies.
Tony earned a journalism scholarship and earned numerous awards in history and in manufactured housing.
For example, he earned the prestigious Lottinville Award in history from the University of Oklahoma, where he studied history and business management. He’s a managing member and co-founder of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com.
This article reflects the LLC’s and/or the writer’s position and may or may not reflect the views of sponsors or supporters.
