The Business Insider headline “Don’t Show this to Warren Buffett…” was just one of many private or public messages that came into my email in the days following the IBISWorld Report that forecast the manufactured housing dealer as a ‘dying industry.’ Many calls came in on this and related topics in recent days as well. Is this report and our latest drop in shipments on manufactured housing industry professionals’ minds?
You bet.
Last week, Thayer Long sent a message to manufactured housing state execs and the Manufactured Housing Institute (MHI) Board of Directors with a copy of Paul Bradley’s insightful IBIS Report analysis.
Retailer Doug Gorman and manufacturer Otis Orsburn have also sounded off on this manufactured home news topic on our Industry Voices Guest Blog.
Off our site, George Allen and commentary on LinkedIn is ongoing regarding the causes of the Industry’s downturn and what manufactured housing Industry professionals plan to do about it.
We will bring you a story soon with exclusive quotes from Thayer Long at MHI and Danny Ghorbani from MHARR (Manufactured Housing Association for Regulatory Reform) on this topic of IBIS and the latest drops in Industry sales levels.
For the moment, let me echo a statement made by one leader who said that we believe in the future of our Industry. MHMSM.com believes in the future of this industry, too!
We also believe ignoring the facts can be done only at our own peril.
It is at least as important to work for pro-growth efforts to
promote our Industry as it is to
defend the Industry from legislative issues such as the
SAFE Act or Dodd-Frank.
In fact, arguably, the pro-growth efforts can help fund efforts such as getting needed change with respect to SAFE or Dodd-Frank. Our great nation repealed slavery and prohibition; surely we can pull together enough to get a regulatory climate that fosters business and job growth while protecting consumers.
The IBISWorld report puts the media’s role regarding our Industry on center stage. IBISWorld has successfully used the media to cast more doubt over manufactured housing. This poses two questions:
1. How can we get more favorable media coverage for manufactured housing?
2. How can we get the media to use proper terminology that doesn’t sound like a put down every time they report on our Industry?
These will be some of the topics covered in the Engaging the Media panel discussion in Las Vegas on April 28th. For those going to MHI’s Congress in Vegas, we hope you will plan to attend this crucial topic of “Engaging the Media” – because it impacts every business in our Industry multiple times a year. We may also present that topic in Tulsa the following day.
For you and your area, the lessons from Engaging the Media could be a nascent precursor to a national image and educational effort for the manufactured housing industry. Private companies and associations can work together to engage the media to successfully advance the Industry’s image and thus manufactured home sales results.
Thayer Long is correct in saying that attendance and factory orders from shows at Louisville, Tunica and sign-ups for the Congress, PMHA’s HOMExpo 2011 in York PA and the 2011 Great Southwest Home Show in Tulsa OK are all positive signs.
Information I’ve seen indicates that the 2011 Great Southwest Home Show registration is running well ahead of last year. Attendance was good at Louisville and Tunica, and is expected to be good for HOMExpo 2011 in York PA as well.
After a long night, any sign of dawn’s first light is anxiously awaited. That is human nature. We want to see positive signs where we can find them.
But unlike dawn or the seasons, business results can be influenced!
Sales results can be measured – but also increased – through sound analysis, planning and follow through. Shows and educational efforts are tools to boost business that we believe in.
What is critical is that we not get bogged down in politics or bickering that fails to advance our personal, professional, business or broader Industry advancement and growth.
Every manager or executive is held accountable for RESULTS. Should we not hold ourselves and others accountable as well for getting results?
George Allen and Doug Gorman come from different parts of the MH Industry world. Each has won their share of awards, and each has professionals who cheer for their positive efforts. Entirely unbeknownst to each other, Doug and George decided this weekend to include in their writings musing about ‘conspiracy theories’ regarding the Industry’s downturn. Each has a different take, George on his Community-Investor Blog and Doug on our Industry Voices Guest Blog.
Quoting in part from George’s Blog post earlier today:
“It’s the well known but embarrassing phenomenon of self – immolation (Webster: as in ‘killing oneself – or industry – as a sacrificial victim’). In the case of manufactured housing, this self – defeating state of affairs is characterized by ‘resistance to change’ (e.g. Like automobile plants, we count our ‘shipments’, not homes ‘sold’, & cling to vestigial trade lingo like it’s Biblical writ); greed (e.g. Think, ‘Bigger boxes = bigger bucks!’); and, frequent lack of product (installation) responsibility (warranty) once the house leaves the factory (e.g. Remember ‘DAR’? It’s the industry’s continuing mantra, in some circles, as in ‘Drop (that house) And Run!’).
“And there’s more. How ‘bout cyclic short term abuses of chattel and realty finance sources, followed by reaping self – sacrificial long term consequences of going without (e.g. Only 50,000+/- new HUD Code homes ‘shipped’ during years 2008, 2009 & 2010)?
“Of course, there’s also the perennial, not – so – private, lobbying – defeating, internecine squabbling between our national advocacy trade bodies inside the Washington, DC beltway. Will it ever end?
“Plus, landlease (nee manufactured home) communities are not without blame! Too many still deserve to be viewed as nothing more than ‘trailer parks’, awash with negative societal mores and perpetuating a very poor public image of an otherwise desirable, affordable lifestyle. And in the same breath, do we dare mention the nefarious (in some eyes) or business risk – mitigating (in other eyes) practice of ‘churning’ our (property owner) self – financed homeowner/rental homesite lessees? And the list goes on….
“Is there a solution? I believe there is. But we need a charismatic, respected, well known, successful businessman or woman leader, to step forth and publicly announce, ‘The HUD Code manufactured housing industry is at an impasse! And if we’re to move forward together, and profitably, during the next decade, we’ve simply got to Get Our Act Together, the sooner the better!’”
(Editor’s Note: The wording quoted above is copied verbatim from GFA’s blog, but paragraph spacing and bold emphasis are ours).
Let’s sum up.
Here are our links to the IBIS related stories and blog posts on our site:
Industries are made up of thousands of businesses and professionals. The presence of big players in our Industry is a good reason for us to continue to believe in our Industry. The presence of far more ‘mom and pop’ independents who are hanging in and working hard to effect their own turn around are good reasons to believe that we can individually respond to local trends and opportunities. But we do have to be willing to change and adapt to the times. Failure to change and adapt in positive ways will mean that more retailers, communities, manufacturers and others fall by the wayside.
Business Insider’s “Don’t Show this to Warren Buffett…”? Come on. IBISWorld Report? Come on. They may get some attention and headlines. But do not let those self-serving naysayers get you down.
If we don’t get stuck in a rut, we can move ahead. Ideas like Randy Rowe’s 5 Point Program for the Industry’s turn around are important concepts for us to consider.
Let’s sum up:
- Educational efforts (inside and outside) our industry are of value. Association and other events and shows can be a very useful part of this process.
- MHAO‘s and PMHA‘s promotional efforts such as their public days in their respective home shows are useful tools to show the public at large that today’s manufactured homes are a quality, safe, durable energy saving home value, with the ability to attract both ‘entry level’ and ‘upscale’ home customers.
- There is a need to boost business and our public perception. Some of this can come through Engaging the Media. if you are planning to be in Las Vegas for MHI’s Congress, please plan on attending this workshop and panel discussion.
- There should be accountability for results.
The bottom line?
We need to be willing to change where and as needed, or risk becoming the dinosaurs that the IBISWorld Report predicts we will become. Let’s make the IBISWorld Report and dropping industry shipment numbers the wake up call to change what and as needed. # #
