|
Currency Trends and Modular Homes
While you may not suspect the currency market could affect the modular home industry, it actually does. The impact of this currently has been regionally, but as time moves forward, modular home competition may occur in a global market. As a result, the strength of the U.S. dollar would determine how strong the modular home market is in the U.S. itself. If the dollar weakens in relation to foreign competitors, it may become more cost effective for global manufacturers to compete for modular home consumers not only within their own country but also abroad.
In the New England region, especially in states such as Maine and New Hampshire, Canadian manufacturers of modular homes had a significant advantage in the recent year supplying homes to residents. Transport costs were inexpensive because the region of interest was close to the Canadian factory, and prices could be dropped for the consumer since the Canadian currency had surpassed the U.S. dollar in value. It was difficult for the U.S. manufacturers to compete on a cost basis.
Regardless, U.S. manufacturers were able to diversify into other areas of the country and still compete on a patriotic platform to homebuyers. But what if this occurred on a larger scale? With continental trade alliances, import costs are negligible in some cases, and it may be that manufacturers with ample resources of labor and materials could pose serious competitive threats. Shipping costs for placing modules on a barge headed for the U.S. may be affordable since there would be savings in other costs of production. In short, despite the additional shipping expense, a modular home could be made and sold for less money compared to a U.S. manufacturer.
Suppose the currency in other countries continued to increase in value compared to the U.S. dollar. If a country had a starting point of 30 percent greater value in their currency strength, then effectively they could compete in many markets including the modular home market. There would be value already built in to offset export and import costs. If another country was able to add even further to production efficiency and quality, this would be an even larger issue. In effect, this would be similar to the explosion of foreign automobile manufacturers in the 1970?s.
Global competition has yet to reach the modular home industry, but certainly there are other modular home factories overseas and around the world. The largest market for consumers however remains in the U.S. currently, and therefore, the battleground for foreign competition will likely be here. For the consumer, a less expensive, higher quality product is a win-win, especially when the U.S. dollar is shrinking and housing markets readjusting. But eventually it affects employment opportunities locally and other factors.
It is therefore important that U.S. manufacturers continue to be alert to opportunities to improve efficiency, quality and expense so that the best product can be developed. Likewise, seeking areas elsewhere in the world where modular homes may offer great rewards may be strategic.
Michael Zenga is a Modular Home Builder in the Boston, MA area. He founded ZN Custom Building, in 2002, which specializes in modular home construction. Known as the Modular Building Specialist, Michael Zenga builds Custom Modular Homes in Boston, MA
RELATED ARTICLES:
North Carolina Noted as the #1 Destination Across the U.S. - Waterfront Homes and Waterfront Real Estate on Lake Norman, North Carolina Lakefront Prop
Lake Norman Waterfront and Waterfront Communities values are holding steady.
Building Homes A Cumbersome Task
The Problem Scenario
Cars for Homes™ Drives Week-long Habitat for Humanity® Home Building in the Gulf
Helping rebuild communities ravaged by Hurricanes Katrina and Rita, Habitat for Humanity's Cars for Homes™ vehicle donation program is utilizing the revenues from a donated powerboat to sponsor one complete house and energy saving upgrades to others being built this week. Over a year after the hurricanes, Habitat for Humanity continues to fulfill its commitment to build simple, decent, affordable housing in the Gulf. Cars for Homes™ staff, corporate partners and volunteers from ten different states are joining with the Ginger Ford Habitat for Humanity affiliate to help build Rosario Louisa August, a widow, and her four children, a new home.
Study Ranks North Carolina's Most Productive Research Universities
Academic Analytics announces North Carolina's most productive research universities as measured by faculty scholarly productivity. Duke University tops the charts among the state's largest research universities.
Homes For Our Troops Announces 'Build Brigade' for its Third Pennsylvania Home
Homes For Our Troops, VP/Chief Project Officer, Kirt Rebello, will be available for interviews at 112 Oesterle Lane,(Ross Township), Pittsburgh, PA at 11:00 AM on November 15, 2007.
Waste Management Company Ranks as One of Largest Environmental Companies in North Carolina Triad
Southern Logistics Environmental, a full service environmental company in Greensboro, North Carolina, ranks as one of the largest environmental companies by Triad Business Journal.
With Free OSU Football Tickets, Dominion Homes Proves ‘Shoe’ Sales Aren’t Just For Women
Ohio-based new home builder offering Buckeyes season tickets with purchase of inventory home.
Alienation of Affection - Interference with marriage can cost big bucks in North Carolina
Non-lawyers are often surprised to learn that a spouse can sue for money damages in North Carolina based on allegations of emotional harm caused by a third party to the marital relationship. These lawsuits for "alienation of affection" and/or "criminal conversation" are usually brought by the innocent spouse against the guilty spouse's lover; but an alienation action may also be brought against someone like an in-law or other near relative who has advised a defecting spouse to leave the marital relationship.
Gagliardo Realty Launches Their New Interactive Website, GagliardoRealty.com
Gagliardo Realty Launches Their New Interactive Website www.GagliardoRealty.com. Interactive and user-friendly, this new website is a valuable online resource for those interested in real estate in the Oak Park and River Forest area. Since 1958, the agents of Gagliardo Realty have been helping homebuyers and sellers with their real estate needs in these western Chicago suburbs.
Merrick Towle Communications Creates 'Extreme' Website for Clark Turner Signature Homes
Clark Turner Signature Homes recently selected Merrick Towle Communications (MTC) to develop a dynamic website, www.CTExtremeDream.com , and oversee the marketing program to support the builder's involvement in this weekend's episode of the ABC-TV program "Extreme Makeover: Home Edition." The episode "Luther Family" is scheduled to air this Sunday, January 20, 2007.
Survey Reveals That in 2007, Homeowners Will Take Advantage of Dropping Labor and Material Costs and Remodel Their Homes
A recent survey of 5,000 homeowners indicates that homeowners are reacting to the end of the real estate boom by staying put and remodeling.
The Hampshire Generational Fund Sells Industrial Building In Watertown, NY to Tahcor Realty, Inc.
The Hampshire Companies recently announced the disposition of an industrial building located at 22530 Fisher Road in Watertown, NY to Tahcor Realty, Inc.
Why Clean Mobile Homes for a Business?
Manufactured and Mobile Home owners know that the weather this year will be quite harsh. It's imperative these owners to clean out rain gutters and debris from on top of their homes.
Orange County Real Estate - OC Homes - Orange County Realtors
Whether you are looking to buy, or you are selling real estate in Orange County then we are the perfect choice for luxury homes for lease in the OC,California.For over 10 years we have been extensively involved in property ownership, management, brokerage and rental leases in the Orange County area. We are leading provider of MLS properties with a very effective marketing plan. If you are interested in buying a home in Orange County, please feel free to access the Orange County MLS. ! We have Orange County homes and properties for sale in Laguna Beach, Monarch Beach, San Juan Capistrano, San Clemente, Newport Beach, Newport Coast, Dana Point, Coto de Caza, etc. we will provide you with a customized property list that meets...
Modern Prefab Homes Are Spread Across The Globe
Whoever thought that prefab homes could ever become a hot item, but that is what is happening with new modernist prefab home designs. Even ten or fifteen years ago, owning a claustrophobic plastic box home was not considered the height of elegance. |
|