There is nothing quite like pie charts, facts and figures to dramatically illustrate what has taken place in HUDVille – the manufactured housing industry – over the last several years.
Trend lines are important for lenders, investors, and business owners to be aware of, and these graphics should also be noteworthy to policy advocates, legal minds, and public officials too.
The first illustration below is from a 2004 issue of the MH Merchandiser Magazine. It shows the top 25 manufactured housing industry producers. Please note that there is no similar listing that has been done for several years. Why not? Would the list of the facts of the top 25 producers of HUD Code manufactured housing prove alarming for independent retailers, communities, producers, suppliers, and others? Is it information that the Arlington, VA based Manufactured Housing Institute (MHI) doesn’t find useful to discuss?
The next illustrations are pie charts created by MHProNews, and based upon the sources as noted herein.
According to the data from the Merchandiser, Berkshire Hathaway purchased two significant manufactured housing brands in 2003. The combination of Clayton Homes and Oakwood Homes that year, yielded just over a 21 percent market share.
Harken back to the painful realities underscored by quoted statements made by Berkshire Hathaway Chairman Warren Buffett and 21st Mortgage President and CEO, Tim Williams in 2009. Those direct – and in context – quotes are found in the Smoking Gun 3 report. The Kevin Clayton video, linked here, shows him saying that the market share of Clayton Homes in 2011 was 25 percent. Let’s take Kevin’s statement at face value.
Finally, the data supplied this year by Berkshire Hathaway – which does not precisely break down manufactured housing, modular homes and other models Clayton Homes builds – indicates that they held a 50 percent market share of manufactured housing in 2017.
Note that trend line since the 2009 Smoking Gun 3 report time frame? Prior to 2009, Clayton Homes grew modestly as a percentage of the industry’s shipment totals, as manufactured housing continued to contract.
Since 2010, Clayton Homes percentage of the industry has soared. That’s put a number of the businesses listed in 2003, out of business, per the Manufactured Housing Institute’s (MHI) own data. Ouch…
That trend-line, per concerned independent voices to MHProNews is a crushing one. At what stage will federal regulators, and anti-trust authorities step in? Recall that the Seattle Times has reported just days ago that the Department of Justice (DoJ), HUD, and others are investigating Clayton.
Please see the linked related reports, below. Bookmark this article, because you will want to share it with your circle of influence, and periodically refer back to the facts that this column provides. “We Provide, You Decide.” © ## (News, analysis, and commentary.)
(Third party images, content are provided under fair use guidelines.)
1) To sign up in seconds for our MH Industry leading emailed news updates, click here.
2) To provide a News Tips and/or Commentary, click the link to the left. Please note if comments are on-or-off the record, thank you.
By L. A. Tony’ Kovach, publisher of MHProNews.com.
Tony is the award-winning managing member of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com.