SITE BUILT vs MODULAR HOME - PICKING A WINNER

2,000 years ago our ancestors were building homes from sticks, fastening systems and mud bricks with straw for roofing.  Today we are still building with sticks (dimensional lumber), fastening systems (nails and screws) and straw roofing (shingles and metal).  They also used any labor that was at hand to build their homes.

Here we are in 2011 and guess what, most people still want a site-built home.  Do you know why?

Because nobody is telling them why modular home construction is superior.  Consumers have been told over the years that you have to watch their house being built to insure they get a quality job.  Let's agree on one thing right now.....the average new home buyer doesn't know the difference between below-average and superior construction.  It's not their job!

What the new buying public needs is an easy to understand reason to buy a modular home instead of a site-built home.  So here we go, a comparison that every modular factory person and every modular home builder can use to educate the new home buyer.

Site Built Home Construction	Modular Home Construction
* Disorganized construction	* Organized construction
* Workers are independent from each other	* Each production station is organized
* Work is fragmented	* Work is compartmentalized
* Poor communication between trades	* Total communication between trades
Inefficiencies of site built homes	Efficiencies of modular homes
* Raw Materials delivered to site	* Raw materials on hand
* Many trips to each job site by workers	* Workers drive to central factory
* Physical labor applied to every piece and part	* Automated and labor saving devices used
* Work area set up and taken down daily	* Work stations are permanent
* Linear construction process	* Multiple stations working on same project
* Inadequate hand and power tools	* Professional tools and machines in place
* Down-time due to weather	* Very little downtime if any
* All materials exposed to weather and vandalism	* All production secured under roof

Now for some real eye-opening facts:

• Majority of those working in site building have no more than a high school education and have no formal training in the work they do every day.
• Training and supervision on site-built homes is often performed by those with the few skills and little training themselves.
• Street corner pick up laborers are used by many smaller site builders to hold costs down.

When the housing recession finally starts to turn around in 2013, who will be available to build the houses?  Recession has decimated the labor and subcontracting pools.  The trades needed by site builders will not be a popular destination for young people.

This means that the site building industry will be faced with extremely high turnover rates, dropping labor skills and higher wages.

A few years ago Consumer Reports said the new homes are the most defective product consumer can own.  Since modular construction only has 3% of the total new home market, they couldn't have been talking about us.  Consumer Reports noted that there is a 15% serious defect in new homes.

Interestingly, the same report sighted manufacturers in America have a 1% serious defect rate and if a home is built in a factory, it has a huge advantage over site built homes.

I could also do a comparison of green, energy saving and sustainability between site built and modular construction but I will save that for another article.

Faced with these realities, home buyers will begin looking for a better way to build their new home and modular should be the answer to their prayers.  

HOME OF THE FUTURE - 1962

The 1962 World’s Fair put Seattle on the map, literally, with its pavilions full of unique exhibits, ground-breaking building design and the iconic Space Needle that would come to represent the city to the world. And one of those exhibits — according to area historians Alan J. Stein and Paula Becker — is sitting just off of SE 70th Place and East Mercer Way on Mercer Island.

An innovative, modular home created by the US Plywood Association, was billed at the fair as the “American Home of the Immediate Future,” and a “Living Research House” is one of many pieces of living history in the area — but one of the few being used for it's orignial purpose.

I'm struck by the similarities to Michelle Kaufmann's (the self-proclaimed inventor of modular housing) Glide House.  Does this mean that MKD, her design studio, is really just rehashing the looks of 50 year old houses that were featured at the 1962 World's Fair in Seattle?  Here are some pictures...you decide.

The floor plan for "America's Home of the Immediate Future"  Credit: DeAnn Rossetti

Today's view of 7000 East Mercer Way. Credit: King County Assessor's Office

Michelle Kaufmann's Glidehouse

NATIONWIDE HOMES HOLDS SUCCESSFUL OPEN HOUSE

Nationwide Homes in Martinsville, VA recently held an Open House at their factory.  Not only was it open to the public but a few of their builders brought prospects to it as well.  They were shown the entire process of home building from raw lumber to finished product including a crane setting a module.

The tour of the production line detailed each stage in the process and ended at the Nationwide Design Center where prospective new home buyers see lots of the options and features that can go into their home. 

They also banking professionals on hand to answer any question the prospects might have.  I heard from a little bird that it was a very good Open House for them.  Shhh...don't tell anyone I told you.

CHAMPION HOMES AND USMODULAR SIGN AGREEMENT

Champion Commercial Structures, a division of Champion Homes, together with USModular announced a teaming agreement that will allow the companies to jointly pursue multi-family construction opportunities. This agreement brings together the Champion modular construction process with general contracting work performed by USModular to provide a hybrid construction solution and building model for residential developers.

 “Our partnership with US Modular allows Champion to focus on our core strength – working with clients to develop modular solutions to their building needs, and producing high quality modular construction,” said Dan McMurtrie, vice president, corporate development, Champion Homes. “USModular’s expertise in project planning, logistics, and general contracting enables the client to realize the full potential of modular construction; increased speed, cost savings, quality and risk control. We are excited to bring this new force to the marketplace.”

 “We sought a manufacturing partner that had the vision and scale of USModular,” said Abe Ferreira, CEO of USModular. “Champion is a great fit with their national manufacturing footprint, modular experience and corporate support services. We see this partnership as a great pairing of two leaders in modular construction.”

Could this be the trend for commercial modular companies?  Both Champion Homes and USModular are playing to their strengths.  Expect to see them do great things together.

WE ARE NOT ALONE; THERE'S HUF HAUS

If you listen to the news on TV, radio, the newspapers or on the Internet, you start to think that the US is the only country important enough to warrant any attention.  But when it comes to modular home and commercial construction and factories, most of our factories are behind the rest of the world.

Here is an example of how a German modular factory is marketing and selling their products throughout the world including at least one builder in the US. Huf Haus is a modular company that has the capacity to build just about anything a client or builder would need.

Take a few minutes or maybe an hour and go through their website.  You just might find some interesting things you can use.  Also, look at their homes.  Can you say "Alpine" looking?  There's even a blog dedicated to all things Huf Haus by a fellow named Bob.

 

SPOKESWOMAN RETIRES AT SIGNATURE BUILDING SYSTEMS

I know I getting older when the young woman that has adorned the opening page at Signature Homes' website retires after only 2 years on the job.  Every time I visited their site, I found myself staying a few extra moments just to hear her voice. 

But that's the way things happen on the Internet.  Here today, gone tomorrow. Think MySpace!

Over the weekend, Signature Homes has launched a completely new and exciting website that looks very nice and informative.  Visit it and leave a comment with your thoughts on their new site.

I'm just sorry I didn't have a chance to say goodbye to her or get her name before they retired her to wherever digitally created people go.

EPOCH HOMES AND MASS TEAM READY FOR SOLAR DECATHLON

This year's Solar Decathlon will feature a modular home designed by Team Massachusetts and built by Epoch Homes, a New England based modular home factory.  Modular homes have been creeping into every corner of new home construction and are even becoming a regular on Extreme Makeover, Home Edition with a custom modular log home being furnished by Blue Ridge Log Cabins featured on this year's premier of the show.

The 2011 Solar Decathlon is featured on the National Mall in Washington, DC from September 23rd to October 2nd.  I'm planning on visiting the show and checking out the Mass Team home.

Members of Team Massachusetts

CLICK HERE to visit to their blog