Prefabricated Housing - The Freedonia Group

Freedonia Study #1727 - PREFABRICATED HOUSINGSouth Prefabricated Housing Demand by Product(thousand units)Item 1992 1997 2002 2007 2012Product Designs - MultisectionShipments of multisection manufactured homes are forecastto rise 2.6 percent per annum through 2007 to148,000 units. While this pace remains below that of thedouble-digit growth of the 1992-1997 period, it is animprovement over the decline experienced during the 1997-2002 period when SAMPLE production PAGEof multisection manufacturedhousing contracted Text sections significantly. support each However, in spite of thisdecline, multisection units managed to increase theirtable’s numbers & projectionsdominance in the manufactured housing market, rising fromabout 58 percent of shipments in 1997 to almost 77percent in 2002. The economic growth of the late 1990s,coupled with falling interest rates in 2001 and 2002,allowed consumers to afford larger, multisection units.Total US Prefab Housing Demand280 413 262 280 335% south 53.2 59.3 54.2 55.0 56.1DEMAND BY REGIONSouth Prefabricated Housing Demand149 245 142 154 188Manufactured Housing: 124This 219 Section analyzes 99 113 trends147Single-Section 71 and 104 considers 27the threats 30 33Multisection 53and115opportunities72in83each114Other Prefabricated Housing: 25 26 43 41 41major regional marketModular 8 11 17 16 16MANUFACTURED Precut HOUSING12 11 17 16 15Panelized 5 4 9 9 10Over the forecast period, the majority of shipments will beaccounted for by demand in the South. The South isprojected to continue to draw a large number of retireesand baby boomers from cooler climates, and multisectionmanufactured housing offers these consumers Panelized the larger Housing Shipmentsfloorspace and other features they were accustomed to insite-built homes, but typically at a lower cost. The Midwestis also projected to post above-average demand Item growth for1992 1997 2002 2007 2012mutlisection units, although from a small base.Other Prefab Hsg Shpts (000 units)71 85 93 95 100The average wholesale price per unit is projected % to panelized advance2.7 percent per annum through 2007 to $41,600,15.5 15.3 16.1 17.9 20.0driven by the inclusion of more amenities (i.e., Panelized cathedral Housing Shpts (000 units)11 13 15 17 20PRODUCTS000$/unit 30.5 34.6 36.7 40.9 44.0The Product SectionsPanelized Housing Shipments (mil $)335 450 550 695 880provide demand for+ value-added costs (mil $) 535historical years and735 900 1140forecast growth to1450Total Installed Value (mil $) 870 1185 20071450 and 2012 1835 2330Total Installed 000$/Unit* 79.1 91.2 96.7 107.9 116.5*manufacturer’s price plus cost of attachment/assembly