Manufactured Home Manufacturing Industry Profile

The US manufactured housing (MH) industry includes about 200 companies with combined annual sales of about $3 billion. Major companies include Cavco, Champion Enterprises, and Clayton Homes. The industry is highly concentrated: the top eight companies account for about 60 percent of revenue.

Companies in the MH industry make manufactured homes, also known as mobile homes, and nonresidential mobile buildings. Although MH structures are equipped with chassis, they are not intended for frequent movement. Makers of prefabricated wood buildings not equipped with chassis are not included in the industry. Neither are makers of recreational vehicles, which are covered in a separate industry profile.

COMPETITIVE LANDSCAPE

Demand is driven by population growth, the cost of alternative forms of housing, and the availability of credit. The profitability of individual companies depends on efficient operations and access to dealers. Large companies have economies of scale in purchasing and distribution. Small companies can compete successfully in local markets.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major products are manufactured homes, which account for more than 90 percent of industry revenue, and nonresidential mobile buildings.

MH companies produce single- or double-wide rectangular housing or nonresidential units, which are later installed on a site to form a dwelling or building, such as a classroom or office. The resulting house may consist of a single or several units, called "floors," even though they sit side-by-side, fastened together at the installation site. Most units sold are double-wide. Housing units typically ...