And some modular companies such as Ritz-Craft continue to dabble in manufactured housing. For example, Ames notes that his firm recently began selling what might be described as “upscale” manufactured homes, with Corian countertops and other luxury amenities. These have been popular in certain senior communities.
Looking AheadManufactured home builders aren't ready to throw in the towel. Instead, they're trying to adjust their operations to compete more effectively.
Ames notes that many companies are adjusting both their financing formulas and their mix of modular and manufactured housing. His company started out as a HUD-code manufacturer. But he says it read the writing on the wall, and this year will open its fourth modular factory.
“We're also putting some effort into alternative channels, selling packages to parks and developers,” Larkin says. “That has been pretty successful, and we will continue to pursue that.”