Manufactured Housing

In the US about 200 companies make manufactured housing (MH) - previously called “mobile homes” - with combined annual sales of about $7 billion. Large manufacturers include Champion Enterprises, Palm Harbor Homes, Fleetwood Enterprises, and Clayton Homes. The industry is highly concentrated: the top 20 manufacturers account for more than 80 percent of production.

COMPETITIVE LANDSCAPE

The high cost of conventional housing and the availability of credit drive demand for manufactured housing. The profitability of individual companies depends on efficient operations and access to dealers. Large companies benefit in distribution, the creation of large dealer networks, and ability to locate factories close to dealers. Small companies can compete successfully in local markets.

PRODUCTS, OPERATIONS & TECHNOLOGY

The industry manufactures single- or double-wide rectangular housing units, which are later installed on a site to form a dwelling. 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. Units cost from $15,000 to $170,000 and range from 400 to 4,000 square feet. A large majority are double-wide instead of single width. Most have three or more bedrooms, two full bathrooms, central air conditioning, and average 1,500 square feet.

MH is built on assembly lines in factories, generally using the same materials as for a site-built house. The efficiency of working in standardized fashion in a controlled environment substantially reduces construction costs. Manufacturing costs are about ...