BLU HOMES CONTINUES TO GAIN IN POPULARITY

Blu Homes, Inc. recently announced it has raised more than $7 million from private investors.  The funds will be used primarily to support new product development, R&D and sales and marketing.

“This financing will be used to scale our business,” said Bill Haney, co-founder and president of Blu.  ”The market for beautiful, green, healthy homes is sizeable and we have a unique product at a reasonable price that homeowners, developers and corporations across the country are buying.  Our new 80,000 square foot facility in East Longmeadow, Mass. will allow us to meet the growing demand.”

Blu’s break-through information and building science technology allow Blu to economically design, manufacture and ship its green homes and buildings across the United States.  Unlike modular homes Blu builds spaces up to 34 feet wide with ceiling heights up to 16 feet, so the designs are open, spacious and bright.  Blu’s homes can be finished on site in a matter of weeks and are constructed of a steel/wood frame designed for extraordinary durability.

Blu offers residential and commercial designs and has delivered homes to families and businesses across the U.S.   Blu’s buildings comes in a variety of models, sizes and floor plans, including studios, one-, two-, three- and four-bedroom homes  and commercial buildings, all allowing for interactive customer design involvement.

Blu homes feature a unique combination of healthy, cool and green features designed to create a healthy living environment with a reduced carbon footprint.  These features include low or no-VOC paints and finishes, recycled and recyclable materials, low-flow fixtures, energy star appliances, high efficiency heating systems and architectural characteristics that maximize passive heating and cooling.

BLUE RIDGE LOG CABINS CHOSEN FOR "EXTREME" SEASON PREMIER

Blue Ridge Log Cabins, a modular log home builder in North Carolina has been selected by the television show “Extreme Makeover: Home Edition” to build a house for a needy family in Fayetteville, NC.

The family will be notified next month by cast members of the show. Work is scheduled to begin July 14 in North Carolina, and the episode will premiere this fall on ABC-TV.

On Wednesday, Blue Ride Log Cabins launched a campaign for the project called “Heroes, Hearts and Hardhats.” Representatives from the show attended the announcement.

“Extreme Makeover: Home Edition' is one of America's most watched television shows,” said Milton “Chip” Smith, owner and president of Blue Ridge Log Cabins. “It is a great honor for our team to be selected. The show doesn't select builders on a whim. It selects the best of the best.”

This is the first time a modular log home has been constructed on the show. Most of the house will be built during the next several weeks in the company's 110,000 square-foot facility off Interstate 26 in Spartanburg County.

Posted by Coach at 10:54 AM

EXCEL HOMES BUILDS IMPRESSIVE PROJECT

Excel Homes, Liverpool, PA finished an impressive housing complex at Temple University. Called the "The Modules at Templetown", it was designed in three months and delivered and finished on site in nine. And it's striving for LEED Silver certification.


This 72 unit residence building is expected to be the largest LEED certified housing project in the US.

For the Inhabitat story on this project: CLICK HERE

To read the Excel Homes blog article: CLICK HERE

SITE BUILDER STEALS $300K WHILE BUILDING HOME

As I read through my morning news feeds, I am always finding little gems that make me glad I'm in the modular housing side of new home construction.  Yesterday I found another reason to give modular home builders a second look.

The story is about a contractor that stole $300,000 from his subcontractors and suppliers by not paying them.  In this tough economy, you might expect that to happen more often but it is still rare.

What makes this story so interesting is that he has done this before and people still went to him to build their home!

CLICK HERE to read the story.

NEW ZEALAND MODULAR FACTORY USES SHIPPING CONTAINERS

I've noticed a growing trend on this blog.  It's getting quite a few readers from Australia, New Zealand and the Pacific Rim countries.  Most of them are about 12 hours ahead of my US readers which means that my nighttime readership is growing.

Investigating this a little further found that there are many modular and container home factories located there.

Here is an example of just one of them, Earth Cube.

I've never been a big fan of container homes in the US but with all the earthquakes and floods in Asia and Australia, I am becoming a believer in their necessity for these situations.  Maybe I will actually visit one soon and possibly change my mind about living in one on a permanent basis but until then, call me a skeptic.

NEW PRODUCT IDEAS FOR MODULAR HOMES

Predictions for 2020 are in and here are just a few Green and Energy Efficient ideas that builders can start to expect from their Modular Manufacturers over the next few years:
Programmable Thermostats

Smaller homes with more upscale features

Solar Panels

Prepped for Electric vehicles

Low VOC (volatile organic compound) house paints

LED Lighting

Ductless Heating

Triple-glazed, low-emissive windows

METHOD HOMES OFFERS UNIQUE ALTERNATIVES

Readers of this blog know by now that I don't have a warm, fuzzy place in my heart for West Coast Architects that design Lego-like boxes, create a website and then try to tell buyers that they invented modular housing.

But I recently came across a manufacturer using the West Coast approach to build some really nice homes even though they aren't the traditional East Coast 2 story Colonial.

What really made an impression on me is their website.  Unlike the wannabe modular manufacturers, it features ACTUAL homes built by the company along with a ton of information.

Here are some examples of their actual homes.

HUNTINGTON HOMES AN EXCELLENT MODULAR FACTORY

Huntington Homes, located in East Montpelier, VT uses Facebook to get the word out about their good looking and energy efficient modular homes. If you are building modular home builder and want to add more eyeballs looking at your product, Facebook is a great way to make it happen.

Here are some pictures from Facebook that caught my attention recently. If this is the quality of their finished product, they better get ready for the Facebook crowd to show increased interest in their homes.

SELECTING THE RIGHT MODULAR BUILDER IS IMPORTANT

Linkedin, the semi-social network for the white collar and industry leader crowd, is one of my Internet stops every day.  I look at the latest comments about housing and real estate looking for trends and news that I feel the readers of this blog would enjoy.

Recently someone posted a topic on one of the "groups" asking for the distinction between modular and manufactured housing.  One comment really caught my attention.  It was from Greg Hewlett, owner of M H Imperial Homes in the Glen Falls, NY area.

 

You can feel his frustration with some modular home factories and I believe he makes a good argument as to why factories need to have a better vetting process.

Here is his comment:

We have an identity crisis in the industry but I do not agree with the causes stated above. We do very well with getting customers past the design limitations issues. 3D rendering tools hundreds of images for our customers to see that they have no design limitations. If they can get it from a site builder they can get it from us only better. That is for the customers I get to see. The issue I see is for the ones I never get to talk to because of the preconceived notions of what modular has to offer and the quality concerns.

The quality concerns are real. In my block there are 4 mod dealers. One of us is a builder. The other three are retailers. The majority of the mods built in my area are garbage and cost way more then people expected. That is because these old school trailer sales lots still work on "Sell" the home and let the customer fend for themselves on the rest. Hundreds of horror stories exist. We all know they exist in site building to, but it is harder to label them into a group the way mods are.

Every manufacture tells me how they would like to work with QUALITY builders but if they can sign up a sales lot they will regardless of reputation.

All the market of LEED and Green in the world is useless as long as some of those houses are pushed through dealers that leave the homeowner to fend for themselves. The best thing we are seeing is banks that will not finance if there is not a define GC other then the home owner. But what would solve our industries problems the fastest is legislation that requires the Dealer to be wholly responsible for the entire project. Over time this will weed out the non-builder dealers, improve the consistence of completion of modular homes and allow the industry to be seen as the Quality houses modular homes should be when properly completed. If would help if the manufactures bought in to this.
Posted by Greg Hewlett

7 REASONS TO BUILD A MODULAR HOME

Do you want to avoid the potential pitfalls of constructing a traditional home? If so, then you should definitely consider building a modular home instead. Such homes are built mostly off-site before they are moved on-site. Here are some need-to-know facts about modular homes:

They require little on-site work

Nearly all of the modular home's construction occurs in the factory. After the modules have been completed, the modular home business then transfers the modules to the on-site location of the home. After assembling the modules, the company must then add some on-site components.

Furthermore, since the factories where the homes are constructed are climate-controlled, modular homes can be built from springtime to wintertime. So there is no need to worry about construction being delayed when the weather is not cooperating.

They are built inside a climate-controlled factory

This is certainly one of the most noteworthy pluses of modular homes. The modules and the materials are protected in the climate-controlled environment of the factory. That keeps them safe until the completion of the modules' construction.

Their construction can be speedy

How fast can the construction of a modular home be? It frequently only requires about one-third of the time needed to build a traditional on-site home. Here is why. The construction of the modules within a controlled environment of a factory reduces the construction time. Another factor is that employees of the factory construct the modules. That makes the work more efficient than on-site locations, where the temporary replacement of contractors can increase the construction time. Ultimately, modular homes allow you to move into your home only weeks or a month after you have ordered it. That results in additional benefits, such as lower rates for financing.

They are temporarily mobile homes

This involves the transfer of the modules from the factory, to the on-site location. Companies first construct the modules in their factory. Then they move the modules to the home's on-site location. Afterwards, they piece together the modules at that particular site.

They are cost-effective

That is due to several factors. The main one is that the vast majority of the modules' construction happens in factories. That makes it as efficient as a clock's functioning. Additionally, using bulk building materials reduces the total cost of the home.

They provide magnificent quality

It would be logical to assume that the quality of modular homes is significantly lower than the quality of regular on-site homes. But that would be a mistake. One reason is that factories that manufacture modular homes possess all of the equipment that is needed to create complementary modules. Additionally, they have the materials that are required to provide homeowners with several options. Thirdly, manufacturers can easily make any changes needed to the modules, within the factory.

They use energy effectively

This is definitely one of the main benefits of modular homes. It is crucial whether you want to protect the world's environment, or to protect the money in your wallet. The energy's efficient usage is due to various factors. They include the insulation contained in their walls, and the high precision of the homes' modules.

After considering these above benefits of modular homes, you should certainly consider building one.

WHAT EXACTLY IS COST PER SQUARE FOOT?

Costs “per square foot” are like the 10-day weather forecast: they exist because there is a huge demand for them and the fact that they are usually woefully inaccurate is hardly ever factored.

To use a favorite Bushism, “there’s a lot of misunderestimating going on.”

When comparing costs per square foot it is critical to make sure you are using an apples-to-apples comparison. On the top of the equation ask yourself what costs are included. Does it include landscape, hardscape, permit fees,  cost of money, sales tax and contingency?  Then you have add other things like impact fees, design and engineering fees, etc.

If a modular home is what you are building, a lot of these items are included in the factory’s costs to the builder.  One of the biggest benefits of building modular is that the builder can quickly give you a price on the home alone and then start pricing the other things if you agree that the house is in the price range.

On the bottom of the equation, what exactly, is the area measured? Just livable spaces, or are the garage, mechanical, storage, covered areas, deck and patio areas also included?

Manipulate these numbers for any project and you can easily have a 100% swing.

And that’s not accounting for what I call the Pinocchio effect; sometimes the most telling metric would be the builder’s nose length, measured before and after they spout out these numbers. 

EXCEL MORE THAN JUST MODULAR HOMES

Excel Homes, Liverpool, PA finished an impressive housing complex at Temple University. Called the "The Modules at Templetown", it was designed in three months and delivered and finished on site in nine. And it's striving for LEED Silver certification.


This 72 unit residence building is expected to be the largest LEED certified housing project in the US.

For the Inhabitat story on this project: CLICK HERE

To read the Excel Homes blog article: CLICK HERE

NATIONWIDE INTRODUCES NEW LINE OF MODULAR HOMES

Nationwide Homes, the modular home arm of Palm Harbor, isn't letting any grass grow under their feet during this housing downturn.  Even though Palm Harbor is in serious financial trouble with speculations that they may be purchased by one of the biggest HUD manufactures, they have introduced their latest series of homes...The Renew Collection.

Redwood Shores model

This series is targeted for city infill lots with the houses being narrower than a lot of their competitors homes.  Nationwide has resisted the change to major commercial work like some of the other big names in our industry.  Excel Homes for example has contracts to build 600-800 modules this year for projects in NY state.  That's a major chunk of their capacity.

Nationwide has always focused on the single family market and has been quite successful in it.  It will have to be seen if they can continue to target this market now that the company will soon be absorbed into the wonderful world of HUD.

WHY DO MODULAR FACTORIES SELL THROUGH DEALERS?

Why do factories use a network of builders to sell their homes?  Why can't the new home buyer purchase a home directly from the factory?  Why don't factories stand behind their builders and fix anything that goes wrong with the house after the home owner moves in?

I've received a lot of emails over the past couple of years from people that want to buy a modular home asking these questions and more.  I try to answer each of them individually and over time I've become email friends with some of them.  They tell me about their experiences which are mostly positive.  But the questions keep coming in about how modular factories do business.  So let's take a couple of minutes and answer some of these questions.

Why do modular factories use a network of builders/dealers?  There are several good reasons that the vast majority of factories use them.  First, the factory can cover a large geographical area that includes dozens of states, each with their own set of building standards.  Seismic construction needed here, hurricane building systems there, tornado protection, CO detection, automatic shutoffs and other things needed elsewhere.  Who is in the best position to know all these rules and regulations better than local home builders that have been selling and building houses in those areas.  A factory's sales rep and the engineering staff must know a lot of codes but when it comes down to local inspectors, nobody is better than a local builder.

Another reason they use a network of builders is the same one that the auto makers have.  No factory could possibly cover all that territory effectively.  There are some factories out there that do sell their own homes directly to the consumer, but they find that going more than 100 miles from the factory brings into play local conditions that they aren't prepared to work with effectively.  They build a good modular home but are uncomfortable turning over their modules to a builder to complete.  In order for a factory to turn the profits needed today, they must employ a network of approved builders.

Many factories limit the number of builders that they allow in certain areas but this is a little confusing to prospective home buyers.  Take the east coast market for example, most factories have a policy of only having one builder within a 30 mile radius.  Sounds great but that means that Boston can only have one approved factory builder serving about 625,000 people while Philadelphia, with a population of 1,625,000 can only have one builder also.  The idea that one builder can cover an entire city is ridiculous. That's why the car makers have dealers in every local population hub.  This is a discussion for another time.

Why can't the new home buyer purchase a home directly from the factory?
Again, factories can't be expected to have the expertise or time needed to work directly every prospect knowing that they can't convert every lead into a sale.  Their expense for not closing sales would have to be added to every home that did close.  This is lost opportunity cost and must be recouped somehow.  In most cases, it is best for the buyer to work with a local modular home builder/dealer.  One big exception to that is when the customer is buying an extremely large and complicated home or it's a large commercial project.  Then the factory usually wants more control of it.

Why don't factories stand behind their builders and fix anything that goes wrong with the house after the home owner moves in?   Unlike car dealers that deliver a finished product to the end consumer through their dealer network, the modular factory can only deliver about 70-90% of the home that sets above the foundation and the rest is completed by the local builder.  Factories have little or no control over the final steps to completion but do stand behind what they produce with warranties and service departments.

Mistakes do happen and there isn't a factory out there that won't do everything they can to make it right for the home owner.  But when the problem is something that the builder did or failed to do, then the factory must take a hands off approach or the factory could be dragged into something they had no control over.  That is why factories have such strict requirements as to who can buy from them.

The bottom line to this is that a factory needs a strong and loyal builder network to service the home owner.