The Lake Area Improvement Corporation trumpeted the expansion of Watertown-based Superior Homes to Madison last December. Superior Homes, a subsidiary of Brookings-based window maker Larson Manufacturing, builds modular homes and commercial buildings and sells in an eight-state, three-province area.
Let's hope they and their local competitor Custom Touch are bucking the national trend in manufactured homes. A March report from IBISWorld identifies ten key dying industries. On that list: manufactured home dealers.
Manufactured home dealers saw a 73.7% decline in revenue over the last decade. The only industries on this list that saw larger percentage declines in revenue were apparel manufacturing and record stores. The loss percentage for manufactured homes was actually greater than the loss percentage experienced by photofinishing. IBISWorld forecasts a further 58.7% revenue decline for manufactured home dealers through 2016, the largest predicted decline on this list.
Next up: expect the LAIC to announce construction of a stand-alone video consumer video camera factory.
But Cory, this is different. I'm pretty sure the article was referring to mobile homes. Trailer park houses that mortgage bankers don't lend money toward. Custom Touch homes are just as good as a stick built houses from what people say. There's a big difference in the two.
I wondered about the terminology, John. "Manufactured homes" includes mobile homes, but it doesn't exclude the products Superior and Custom Touch put out, does it? The definition IBISWorld offers seems to include those houses built at the factory... ah! but then later, they do have a list of primary activities that puts "mobile" in parentheses right after "manufactured." You may be right, John! ANy other expert opinions out there?
I think what Custom Touch and Superior do is not manufactured housing. They are stick built without the snowbanks :-)
I would hate to see mobile homes disappear. They are a great first home for many young people, college students, etc. We started out in a small used mobile home, both my kids lived in them during college years, two of my siblings lived in one. And in this economy, many cannot afford a new home and will be looking for an affordable starter home or an affordable home, period. Nothing wrong with a mobile home. And I agree, a mobile/manufactured home is not at all a home built "without snowbanks."
I stand corrected by the experts. Linda, maybe mobile homes can hang on to market share. Ask Gerry Lange about the mobile home park he stayed in during his Texas-snowbird adventure this year. Dirt cheap, great activities, lots of fun!
Most mobile homes go down in value like a car and the heating bill on the old ones were astronomical. I'd consider one in a moderate climate, but mostly I cringe when people take a loan to buy one. Poor decision, buy a real house, especially now in a depressed market.
...but Cory, maybe the LAIC could bring a buggy whip manufacturer here.......