Issue link: https://read.dmtmag.com/i/696291
JULY 2016 26 THE JOURNAL BY BRUCE SAVAGE COMMUNICATIONS CONSULTANT Sometimes Distance Is Needed To See the Bigger Picture After an absence of several months due to a mild case of pneumonia and a long-delayed va- cation to Greece, Turkey and the island of Cyprus, I am returning to my editorial duties with the Journal of Manufactured Housing with this col- umn submission. The old saying that "distance is sometimes necessary to fully appreciate a situa- tion" rings particularly true in this case and I would like to share some of my observations upon my return. It has certainly proved true for several of my other clients and I think it is relevant for the manufactured housing industry as well. As part of my "reentry" into my clients' world, I have taken the time necessary to read and "get up to speed" on what's been going on with them and other related industry developments. With the manufactured housing industry, the key find- ing has been that the industry continues its re- bound in shipment numbers, with HUD Code numbers climbing and showing a cumulative pos- itive trend. According to HUD's latest numbers for April 2016, there was 6,689 homes pro- duced, representing a 9.9 percent increase over the 6,085 homes produced during April 2015. That's welcomed news and likely reflects the growing sales of homes by land-lease communi- ties. At the same time, cumulative numbers for in- dustry production for 2016 now total 25,790 homes, a 20.1 percent increase over the 21,459 HUD Code homes produced over the same period in 2015. Again, positive numbers that reflect the monthly and seasonal nature of home sales, with some months more robust than others, mean that while the production numbers are encouraging, there are not the month-by-month increases that point to a really strong recovery underway. Only when these production numbers show a sustained and robust increase each and every month will a true recovery be underway. Manufacturers' Perspectives Another significant source for my observations emanate from my associate, Suzanne Felber, who reported on her attendance at the recent MHI Congress and Expo in Las Vegas. As Suzanne noted in her posting at www.AmericanHousin- gAdvocates.com, one of the underlying themes of this annual event was the definitive optimism of many manufacturers in both their formal com- ments and their interaction with meeting partic- ipants. She made a special point of noting that Kevin Clayton of Clayton Homes was particularly enthusiastic and positive about the future of both his company and the manufactured housing in- dustry. Clayton observed that Clayton Homes is a customer-focused organization and their purpose statement is "opening doors to a better life one house at a time." According to Clayton, his company is the largest home builder – site-built or manufactured – in the U.S. because "each home is more innovative or have better design details than the last one. "We don't allow our- selves to think that this one in 'good enough' and we are never settling – we continue to discover new ways to build a better home." She reported that Clayton endorsed the idea of working with HUD to design a new HUD- Code class of homes as a response to the contin- uing lag in the public acceptance of the "acceptance of manufactured housing terminol- ogy." Clayton stated that such a new "class" of HUD-Code homes would allow the industry to better promote this hybrid to zoning officials, etc. and show how such homes would be constructed on par with site-built homes and should be able to get the same type of mortgages. A new adver- tising campaign geared to millennials would sup- port this initiative. While I know that such change will not hap- pen overnight or without growing pains, I think that such thinking as expressed by Kevin Clay- ton represents exactly what this industry has needed for decades…a willingness to approach our inherent market challenges with fresh ideas and new approaches. The manufactured housing industry has made significant progress in what we build and offer to American families. We have allowed ourselves to stay tied to outdated images and terminologies that severely restrict our abil- ity to grow and reach new markets. We need to get better at marketing these improvements and enhancements to those willing to give our indus- try a new look. Now that gives me more enthu- siasm than I have had for a long time. The Reality Facing Us Again, from everything that I hear and read, finance remains the great variable for our indus- try and only when that issue is resolved will the manufactured housing industry experience real recovery. That's why it is so important that the manufactured housing industry reach some real accommodation on finance-related issues and move itself forward with a more focused agenda that builds a strong future for our industry. Then, and only then, can we see the type of re- covery in our production numbers that everyone is seeking. Bruce Savage is a national communications consultant to both for-profit and non-for-profit clients around the country. He formed Savage Communications Strategies six years ago to as- sist these clients with innovative approaches to challenging com- munications situations. He also recently formed www.AmericanHousingAdvocates.com with Suzanne Felber to highlight on new social media how manufactured homes offer tremendous opportunities to millions of Americans seeking qual- ity housing at affordable prices. Savage served for more than 16 years as the vice president of communications for the Manu- factured Housing Institute and he continues to work with man- ufactured housing industry members with various types of communications and marketing programs. He can be reached at 202-664-4512 or bruce@savagestrategies.com. T J