After months of posturing by the Manufactured Housing Institute (MHI) on the Department of Energy (DOE) Energy Rule for manufactured homes, a new Texas Real Estate Research Center (TRERC) news apparently blows that cover courtesy of the Texas Manufactured Housing Association (TMHA) Vice President (VP) Rob Ripperda. Despite months of apparent razzle dazzle and happy talk by MHI, sans any hint that they would deploy their attorneys to stop the DOE energy rule in its tracks via litigation, Ripperda flatly said that the energy rule is coming and manufacturers have to get ready for it. How that was framed is shown in the TRERC news release that follows, which will be followed by additional information with more MHProNews Analysis and Commentary in Part II of this article. Part III will be our signature Daily Business News on MHProNews left-right market moving headlines (CNN-Newsmax) recap that includes the snapshot of dozens of manufactured housing industry connected publicly traded companies’ equities updates.
In an emailed statement to MHProNews from David Jones at the Texas A&M University Texas Real Estate Research Center (TRERC) was the following statement on 1.11.2023. The analysis and commentary will follow in Part II.
Part I
“Texas’ manufactured-housing industry ended the year on a low note, according to the latest Texas Manufactured Housing Survey (TMHS). Respondents unanimously noted a decrease in business activity relative to November. The industry extended a year-long pullback on production as higher interest rates shocked demand and reset the housing market more broadly.
“Housing manufacturers are still grappling with decreased demand, forcing them to cut payrolls and reduce workweeks,” said Wesley Miller, senior research associate at the Texas Real Estate Research Center (TRERC). “Inventories are building up on the retail side, resulting in fewer orders for manufacturers until more homes are moved.”
Despite ongoing monetary tightening by the Federal Reserve and recessionary concerns, survey respondents are more confident regarding the next six months.
Attached news release has details.”
Manufactured housing closes year on cool note, but optimism grows for 2023
COLLEGE STATION, Tex. (Texas Real Estate Research Center) – Texas’ manufactured housing industry ended the year on a low note, according to the latest Texas Manufactured Housing Survey (TMHS). Respondents unanimously noted a decrease in business activity relative to November. The industry extended a year-long pullback on production as higher interest rates shocked demand and reset the housing market more broadly.
“Housing manufacturers are still grappling with decreased demand, forcing them to cut payrolls and reduce workweeks,” said Wesley Miller, senior research associate at the Texas Real Estate Research Center (TRERC). “Inventories are building up on the retail side, resulting in fewer orders for manufacturers until more homes are moved.”
Despite ongoing monetary tightening by the Federal Reserve and recessionary concerns, survey respondents are more confident regarding the next six months.
“As Texas’ population continues to grow, so will the market for manufactured housing,” said TRERC Research Economist Dr. Harold Hunt. “Although manufactured-housing sales aren’t currently as robust as they have been, the state will always have a need for affordable housing.”
The TMHS reflected the optimistic outlook with the future sales index increasing from 40 to a record-high of 78. The survey’s future general-activity index reached its second highest value at 68.
Housing manufacturers plan to ramp up production and hiring activity to respond to the rebound. Additional supply-chain smoothing and input-price stabilization contributed to the industry’s optimism.
Proposed regulatory requirements, however, remain a prominent concern for TMHS respondents heading into 2023.
“Manufacturers have five more months to prepare for the Department of Energy’s (DOE) new conservation standards and the Environmental Protection Agency’s updated Energy Star program requirements,” said Rob Ripperda, vice president of the Texas Manufactured Housing Association. “These adjustments require a lot of retooling, design updates, new materials sourcing, and a host of other process changes for each of Texas’ 26 manufacturing plants. The final impact on construction costs is unknown.” …
—30—
Part II
There are several apparent elements of Manufactured Housing Institute (MHI) so-called “association malpractice” exposed in this short article from TRERC and the brief comments of First, it is important to note how an MHI affiliate, the TMHA, has been communicating via these monthly reports by TRERC. Perhaps MHI hasn’t been clear enough to the TMHA? Or is TMHA going off the reservation a bit by shedding the obvious light of truth that MHI won’t on this DOE energy rule for manufactured housing issue?
Whatever the case may be, MHI has spent months touting to the industry and their ‘state affiliates’ the glories of their so-called multi-prong effort which claims to be aimed at stopping the DOE’s manufactured housing energy rule. But Ripperda’s remark reveals something that upon examination looks quite different. MHI has been buying time by posturing effort, until the industry is faced with precisely what Ripperda, said. Namely: “Manufacturers have five more months to prepare for the Department of Energy’s (DOE) new conservation standards and the Environmental Protection Agency’s updated Energy Star program requirements.” Note that there is NO mention by the TMHA VP of MHI’s efforts at all? Should there be?
After all, MHI has not admitted their own role in causing the industry to be in the crosshairs of the DOE to begin with. Documents obtained by MHProNews indicate the MHI requested negotiated rulemaking. They did so in conjunction with what the Manufactured Housing Association for Regulatory Reform (MHARR) has aptly dubbed “energy interests.”
So, if MHI were serious and sincere about stopping the costly and harmful DOE manufactured housing energy rule, why did they join with those who are pushing for the DOE energy rule in the first place? Why didn’t MHI join with MHARR and oppose the measure at every turn? These are questions that MHI declines answering. Nor does MHI’s outside attorneys respond to such questions. Which explains why MHARR recently called on MHI to come clean on the history of this energy rule, and then step in an initiate a proper and effective legal action in order to stop it.
There is more to this, of course. For instance, MHProNews exposed MHI’s announced obvious head fake ‘legislative effort’ not long after MHI announced it. MHI had only a smattering of Republicans on board during a time when Democrats controlled both chambers of Congress and the White House. That ‘legislative’ effort that MHI kept asking industry members to send emails in support of created the illusion of efforts. What MHI staff and board leaders were apparently doing is posturing and paltering while buying time until the industry would be forced to comply. Who does that benefit, one may ask? The apparent answer – consolidators. In this case, it would be the Big Three at MHI, Clayton Homes (BRK), Skyline Champion (SKY), and Cavco Industries (CVCO). Nor is that purely deductive reasoning, because Clayton spent over a decade consolidating the industry while Skyline Champion and Cavco have both made consolidation (a.k.a. “mergers and acquisitions”) part of their investor pitches. That is the inconvenient truth hiding in plain sight. See the linked reports herein for more details.
It should be noted that what happens at the production level has obvious ripple effects for street retailers, and with their total numbers in MHVille now dramatically whittled down in the 21st century, the effects are more apparently noticeable for land lease community operators. Consider what high profile consolidator Flagship Communities, which has ex-MHI chair Nathan Smith as one if its co-founders, has openly said is their goal. “Consolidation” of a “fragmented industry.” For anyone that was or remains an independent in any aspect of MHVille, this is a description of YOUR current or previous operation. YOU were clearly targeted for “consolidation.”
Regulatory pressures are merely one of the several tools in the hands of consolidators to achieve their desired end. Who says? Carol Roth, among others, who explains it simply like this.
While the pace may seem modest, the steady exposure of MHI’s behavior by MHProNews/MHLivingNews periodically reveals itself in MHI pivots, like the one below. Without mentioning MHProNews/MHLivingNews, what they did was decades late, BUT it was relatively soon after MHProNews launched its own effort on behalf of manufactured housing industry professionals and consumers.
Going back to MHI’s postured efforts, in the 117th Congress, they launched HR 7651 on May 3, 2022. That is late in a legislative cycle. GovTrack reports that only 16 representatives signed on, and they were all Republicans. That is a nonstarter for those who are serious about passing legislation. It routinely must be bipartisan to become law. It must include Democrats when both houses of Congress were run (last year, i.e.: 2022) when a Democrat is sitting in the White House. MHI knows this, or they are totally incompetent. They should not be thought of as incompetent, rather, they should be seen for what they apparently are – tools in the hands of consolidators. MHProNews editorially observed months ago that the bill would go nowhere without bipartisan support, and it would go nowhere without a Senate companion bill. Both of those observations have proven to be 100 percent accurate assessments. See the latest from GovTrack below, which specifically states that the MHI bill is ‘dead.’ What it doesn’t say is that MHI quietly dropped any mention of the DOE energy rule from their recent Federated States email. Additionally, while MHI claimed that they achieved some of their goals in the bloated Omnibus Bill in the lame duck session that recently ended the 117th Congress, HR 7651 was not included in that bill. Oopps? Or more to the point, is it an example that it is details which expose a con?
Who says? Con jobs are exposed through the details, observed pundit Tammy Bruce of the Independent Women’s Forum. As Bruce recently put it in a column for AMAC.us, “It’s always the details that give away the con.” CollinsDictionary says that a “con job” is “1) an act or instance of duping or swindling. 2) an act or instance of lying or talking glibly to convince others or get one’s way.” It is based on the word “confidence,” which implies that to be successful in a ‘con job’ one must first gain the confidence or trust of the person targeted for being duped or swindled. The advantage that the con artist has, of course, is that the target or ‘mark’ is likely to be in denial for a time, because many don’t want to swiftly admit that they have been taken advantage of, a principle that applies in MHVille and beyond.
But there may be more to it in our profession than some others. MHI includes companies like 21st Mortgage Corporation, a sister company to Clayton Homes, and part of the Warren Buffett led Berkshire Hathaway conglomerate. For those who are selling manufactured homes, 21st is considered to be nearly essentially, especially in instances that involve a land-lease where ‘chattel’ ‘personal property’ loans are needed. Meaning, even if they know they are being lied to, some may feel little or not choice about going along.
Some possible solution? Several items could provide possible relief. In no particular order of importance are the following.
- A) MHARR has long advocated that the industry’s post-production sector need their own trade group, because MHI is NOT providing support as they claim to represent “all segments” of the industry, but in fact appear on closer observation to provide support mainly for consolidators. If MHARR could team up with a new post-production trade group, then the new trade group and MHARR could more completely expose, thwart MHI’s consolidators, while advancing the industry’s regulatory and interests under favorable federal laws.
- B) At the state or federal level, probes of MHI and their consolidators should be done by lawmakers. While it is the job of the Federal Trade Commission (FTC) and the antitrust division of the Department of Justice (DoJ), there appears to be no serious appetite for such efforts in MHVille. Biden-era antitrust efforts have proven ineffective. Coincidence? Or is it because the people that helped put Biden into office would be harmed by such efforts if they were successful? Thus, while DOJ and FTC could get pressure from lawmakers, another option is to initiate state level efforts.
- C) An example of B above is state level efforts on ESG-backing conglomerates. See the report linked below, which could provide a template to reference for state officials.
- D) CHD has recently launched an antitrust suit against some legacy media organizations. They are calling it a landmark move to reign in woes in the news field, but that effort may also be an example for one or more independents to organize and fund or find class action litigators to sue those who are manipulating the manufactured housing industry (i.e. MHVille) through their various schemes of posturing, paltering, and flashy razzle dazzle the leads nowhere significant for industry growth.
- E) Similarly, a group of independents could organize to obtain a Writ of Mandamus or other similar injunctive relief to get federal agencies to do their job instead of being de facto arms of the industry that they are supposed to regulate.
There is more, for example, see the report linked below under the photo of former President Bill Clinton. But that 5-point list is enough to move this segment toward a conclusion.
Summing up, MHI has postured being in the corner of ‘all segments’ of the industry for years, with very little to show for it. Simple logic tells us that the MHI staff are either lousy at their jobs, or they are intentionally behaving as they do, perhaps under direct instructions from corporate board leaders. The later seems likely, as IRS Form 990’s reveal bonuses paid to MHI senior staff. Bonuses…for what? Clearly, MHI’s board – which alone would make such bonus decisions – are rewarding the behavior that the corporate board leaders want. Consider the quotes and linked reports to better understand the tragic realities that have kept manufactured housing underperforming for all of the 21st century.
Note that each of the linked reports has additional information and more crosslinks. When this body of evidence is carefully unpacked, the inescapable conclusion is that MHI and their corporate masters have been working with regulators to limit industry growth. The obvious purpose? To keep new players out, while allowing consolidation to occur within. See the linked reports to learn more.
Part II. Daily Business News on MHProNews Markets Segment
The modifications of our prior Daily Business News on MHProNews format of the recap of yesterday evening’s market report are provided below. It still includes our signature left (CNN Business) and right (Newsmax) ‘market moving’ headlines. The macro market moves graphics will provide context and comparisons for those invested in or tracking manufactured housing connected equities.
In minutes a day readers can get a good sense of significant or major events while keeping up with the trends that are impacting manufactured housing connected investing.
Reminder: several of the graphics on MHProNews can be opened into a larger size. For instance: click the image and follow the prompts in your browser or device to OPEN In a New Window. Then, in several browsers/devices you can click the image and increase the size. Use the ‘x out’ (close window) escape or back key to return.
Headlines from left-of-center CNN Business – from the evening of 1.13.2023
- Aftermath
- This aerial view shows a damaged pier is split in Capitola, California, on January 9, 2023.
- Mud, mold, and destruction: California businesses face catastrophic damage
- Surging egg prices mean record profits for largest US egg producer
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- Just how bad was the war in Ukraine for Europe’s biggest economy last year?
- As U.S. unemployment improved, it worsened for Latinos and Black women
- Delta decided against using ‘fairly old’ backup system during FAA outage
- Inside Facebook’s high-stakes debate to reinstate Trump after a two-year ban
- Exclusive: Rocket CEO says housing isn’t a buyer’s or a seller’s market. Now it’s even
- Consumer sentiment has perked back up to its highest level since April
- Sweden finds the largest rare earth deposit in Europe. It could help cut dependence on China
- Thailand welcomes back Chinese tourists with ‘arms wide open’ as key market returns
- China’s exports plunge as global demand weakens, but trade with Russia hits record high
- Boeing 737 Max 8 takes off in China for the first time since 2019
- World’s top chip maker mulls global expansion with plants in Europe, Japan
- Misogynistic ‘alpha male’ influencer Andrew Tate’s deal with the right-wing social media site Rumble is worth millions, he has privately said
- Starbucks tells corporate employees to return to office 3 days a week
- NYC mayor cites slower economic growth spurred by high office vacancy, cost of migrant crisis and health care, in budget address
- FAA is years away from upgrading the system that grounded all US flights
- Hong Kong businesses cheer China reopening, but warn there’s a long way to go
- US securities regulator charges Genesis, Gemini with unregistered offerings
- Sam Bankman-Fried speaks out for the first time since his arrest
- Stocks are volatile after US prices fall in December
- US deficit widens by $85 billion in December
Headlines from right-of-center Newsmax 1.13.2023
- Oversight Chairman Comer Demands Biden Doc Details
- House Oversight Committee Chair Rep. James Comer, R-Ky., demanded details Friday from President Joe Biden’s legal team on the recently uncovered classified documents discovered in several private locations associated with the president. [Full Story]
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- Ben Carson: Potential Brain Cancer Vaccine ‘Exciting’ | video
- Lara Trump: Biden Docs Reek of ‘Hypocrisy,’ Corruption | video
- Giuliani: Biden Docs Exposed to Get Him Out | video
- Van Drew: Congress to Push Bills on Big Tech Collusion | video
- Petraeus: Putin Must Be Made to Realize War Not Worth Fighting | video
- Newsfront
- Florida Pharmacies Threatened Over Abortion Pills
- Florida Gov. Ron DeSantis is threatening pharmacies with criminal prosecution if they provide abortion pills to patients after the Food and Drug Administration finalized a rule allowing more pharmacies to dispense mifepristone, one of the two pills used in medical abortions… [Full Story]
- Missouri House Adopts Dress Code Requiring Women Cover Their Arms
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- Comer Demands Details on Biden Docs
- House Oversight Committee Chair Rep. James Comer, R-Ky., demanded [Full Story]
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- Recent lawsuits and disclosures such as the ongoing “Twitter Files” [Full Story] | Platinum Article
- Yellen Warns Congress of ‘Irreparable Harm’ as US Nears Debt Limit
- Treasury Secretary Janet Yellen notified Congress on Friday that the [Full Story]
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- Officials investigating the leak in May of Supreme Court Justice [Full Story]
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- Online Shopping Tools
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- Finance
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- Some U.S. investors are looking abroad to capture better stock returns in the coming months, betting European and other international stocks hold more enticing valuations after a long period of U.S. dominance…. [Full Story]
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- More Finance
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- Millions of adults spend too much time at a desk or in front of a screen, and experts have long advised them to sit less, move more. But if lower blood pressure, lower blood sugar, and a mood boost are the goals, what’s the bare minimum of movement that will get the job… [Full Story]
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====================================
Updated
- NOTE 1: The 3rd chart above of manufactured housing connected equities includes the Canadian stock, ECN, which purchased Triad Financial Services, a manufactured home industry finance lender.
- NOTE 2: Drew changed its name and trading symbol at the end of 2016 to Lippert (LCII).
- NOTE 3: Deer Valley was largely taken private, say company insiders in a message to MHProNews on 12.15.2020, but there are still some outstanding shares of the stock from the days when it was a publicly traded firm. Thus, there is still periodic activity on DVLY.
- Note 4: some recent or related reports to the REITs, stocks, and other equities named above follow in the reports linked below.
2022 …Berkshire Hathaway is the parent company to Clayton Homes, 21st Mortgage, Vanderbilt Mortgage and other factory-built housing industry suppliers.
· LCI Industries, Patrick, UFPI, and LP each are suppliers to the manufactured housing industry, among others.
· AMG, CG, and TAVFX have investments in manufactured housing related businesses. For insights from third-parties and clients about our publisher, click here.
Disclosure. MHProNews holds no positions in the stocks in this report.
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That’s a wrap on this installment of “News Through the Lens of Manufactured Homes and Factory-Built Housing” © where “We Provide, You Decide.” © (Affordable housing, manufactured homes, stock, investing, data, metrics, reports, fact-checks, analysis, and commentary. Third-party images or content are provided under fair use guidelines for media.) (See Related Reports, further below. Text/image boxes often are hot-linked to other reports that can be access by clicking on them.)
By L.A. “Tony” Kovach – for MHProNews.
Tony earned a journalism scholarship along with numerous awards in history. There have been several awards and honors and also recognition 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.
