Blog Posting # 788, Copyright 12 April 2024. EducateMHC
Know this! HUD-Code manufactured housing (‘MH’) is federally-regulated, performance-based, affordable-attainable, factory-built housing! (A.k.a. offsite construction). And land lease communities (a.k.a. manufactured home communities & ‘mobile home parks’) comprise the commercial real estate (‘CRE’) component of MH! EducateMHC is the online advocate, official historian, trend tracker, and information resource for both business models. Access EducateMHC via (317) 881-3815; email: gfa7156@aol.com, & visit www.educatemhc.com to order Community Management in the Manufactured Housing Industry. And SWAN SONG is a history of land lease communities & official record of annual MH production totals since 1955; and my autobiography, From SmittyAlpha6 to MHMaven describes personal combat adventures in Vietnam as a USMC lieutenant, a 45 year entrepreneur business career in MH & community ownership, as well as non-fiction author & freelance consultant.
George Allen, CPM®Emeritus, MHM®Master, is the only emeritus member of the Manufactured Housing Institute (‘MHI’), a founding board member of MHI’s National Communities Council (‘NCC’) division, an RV/MH Hall of Fame enshrinee, MHInsider magazine editor at large & Allen Legacy columnist, Vietnam combat veteran & retired lieutenant colonel of U.S. Marines, and author/editor of 20 books & chapbooks on MH, communities, business management & prayer.
SLOW PROGRESS
Regular readers of this weekly blog posting know my primary writing project for year 2024 is to research and pen the second half of the history of the RV/MH Hall of Fame. The late Dr. Carlton Edwards, and fellow RV/MH Hall of Fame enshrinee, authored the first half this history (i.e. from 1972 thru 1993) or Part I. Part II, my project, will describe the years and historical landmarks from 1993 to present day. Know what? While I’m enjoying the challenge, ‘progress’ has been very slow for a couple reasons. There appears to be no accessible historical records relative to the recreational vehicle industry; seriously. And my repeated email requests to MHI for information, to date, have gone unanswered; e.g. ‘Who were the salaried senior leaders of the institute’ from Jerry Connors till now? And, is there a written history of MHI? Once I obtain this information and add it to the 30 years’ time line I’ve crafted, I can make real writing progress – but not until then.
Another recent major writing project that has slowed of late is my plan to, once and for all, prepare and distribute a monthly statistical report summarizing the ‘whole new housing scene’ in the U.S.! As you likely know, I’ve been producing and distributing EducateMHC’s monthly ‘MHShipment volume & Stock market Report’ for years. What I want to do now, beyond just 1) HUD-Code manufactured housing production and stock market reporting (i.e. ten public MH-related companies), is additionally include the number of 2) modular, 3) panelized, 4) Park Model RVs, and 5) site-built housing starts together, as One Grand Total of New Housing Starts each month! The ‘good news’ is that I now have a handle on the number of HUD-Code MHs, number of Park Model RVs (i.e. small housing units, like Tiny Homes), and site-built housing starts. What has been difficult to research to date, or the ‘bad news’, has been the numbers of modular and panelized units! Why? Because these, for the most part, are built in accords with local building ordinances – and as far as I can tell to date, their monthly volumes have never really been measured or reported, except on a quarterly basis. Suggestions anyone? If so, via gfa7156@aol.com I’d like to have this latter matter resolved during the next month or so.
RV Marketing, a Harbinger for MH Sales?
As a 45 years manufactured housing (‘MH’) aficionado, I’ve come to believe, we in the retail marketing and sales of new HUD-Code homes, as well as land lease community owners/operators, can learn valuable lessons from our sister business model, the recreational vehicle (‘RV’) industry. We’ve already talked (in earlier blog postings) of ‘Go RVing’, and before we’re done here, I’ll share key information from InteractRV’s ‘The RV Dealer’s Guide to Choosing the Right Marketing Partner’. There certainly are basics and insights you’ll want to read and ponder.
“Go RVing’s mission is to inspire potential RVers, spark curiosity, and raise awareness about the benefits and accessibility of RVing through rich, authentic and diverse storytelling.” Hmm. Doesn’t take much creative thought to ‘content transfer’ this mission over to manufactured housing, to wit: “Buy MH’s mission is to inspire would be homeowners/site lessees, spark curiosity, and raise awareness about the benefits of manufactured housing & communities through rich, authentic and diverse messaging!” Now there’s a ‘start’ for a national MH marketing and promotional program! Is anyone out there paying attention? If so, let our national MH trade advocates know your thoughts on the timely matter.
Now for some interesting statistics. ‘Go RVing’ debuted in 1994 when annual RV production was at 260,000 units. Four years later, this figure jumped to 290,000 units. At the same time, over in manufactured housing, in 1994, annual MH production was at 303,932 units; four years later that improved to 372,943. What’s interesting about this, from an historical perspective, is that earlier in 1980, when manufactured housing annual production was at 226,092 new homes, RVs languished at 101,000 units. And as a somewhat related sidebar, the RV/MH Hall of Fame was founded in 1972 when MH production was in the neighborhood of 575,000 new homes – but RVs had yet to eclipse the 100,000 mark. This is one reason ‘urban legend’ has it, ‘back in the (1972) day’, ‘MH’ ruled and ‘RV’ was along for the ride; some even talked ‘MH/RV!. Today the production rolls are reversed…almost. Here’re more historic production comparisons. In year 2009, MHs hit their nadir (‘record’) low of only 49,789 new homes, while RVs came in at 160,000 units (down from their late 1990s acme (‘high’) performance). And today, in 2021, when MH struggled to get to 105,772 units, RV cruised to an acme year of 600,000 (Thanks, in large part to ‘Go RVing’) units. In year 2022, when MH moved up to 112,886 new MHs, RVs slumped badly to only 200,100 units – still twice the total of MHs.
Now for the gist you’ve been awaiting. ‘The RV Dealer’s Guide to Choosing the Right Marketing Partner’ was produced by InteractRV, an RV industry marketing consultancy. Here are key observations from my read-thru:
“Choosing the right marketing partner is crucial for RV dealers to effectively promote their business and attract customers.” Frankly, I don’t know of many (if any) independent third party ‘marketing partners’ specializing in manufactured housing today. Not talking about sales training consultants here; rather ‘big picture’ marketing professionals who understand housing.
Before starting one’s search for a marketing partner, this guide emphasizes the importance of defining Marketing Goals in terms of desired results; whether that’s increasing sales, promoting brand awareness, generating leads, or simply improving customer retention. And budget. Ensure a reasonable budget that includes the cost of compensating the right marketing partner.
What to look for in the right marketing partner. This guide lists Industry Experience (relative to understanding seasonality, presence at RV trade shows, using correct trade language). Also important to research and confirm reputations and references, know partner can strategize, understands one’s specific business and targeted audience, and more.
How ‘bout an integrated website and related marketing services? This can become complicated quickly, so search for a marketing partner who offers a comprehensive range of services and does not rely on the sales center to ‘train them’. And the beat goes on. Yes, there’s more to consider, but this at least scratches the surface for you when in search of a good marketing partner.
There have been consultancy partners in years past, both where independent (street) MHRetailers are concerned (‘company stores’ relied on manufacturer guidance – when available) and land lease communities. In the first instance, a few firms offered operating performance focus groups who met regularly, kept proceedings confidential, and frankly, compared and cross-critiqued their corporate operating statements. There was a similar scenario and methodology, for a decade or so, when portfolio owners/operators of communities convened, usually on-site, for an evening of interpersonal networking followed by a day of pre-agreed topics for discussion, usually on marketing, operations, resident relations, and more.
If you’d like to talk more about this concept of marketing partners and focus groups, let me know via gfa7156@aol.com
George Allen, CPM, MHM